Card Verification Value (CVV)
Definition - What does Card Verification Value (CVV) mean?
A card verification value may also be known as a card verification number (CVN), card verification data (CVD), card security code (CSC), verification code (V Code) or card code verification (CCV).
Techopedia explains Card Verification Value (CVV)
CVV codes are generated by the issuer and calculated by encrypting the bank card number together with the service code and expiration date and a secret encryption code known only by the issuer. This is then converted to decimal code to create a three- or four-digit code.
Card issuers require merchants not to store the CVV2 on any transaction database so that it cannot be stolen along with credit card numbers. Virtual payment terminals, payment gateways and ATM machines do not store the CVV2, which ensures that any individual who may have access to these payment interfaces and therefore complete access to card numbers, card holder names and expiration dates still lack the CVV2.
Unfortunately, this security feature cannot guard against phishing, where the card holder unknowingly yet willingly divulges the CVV2 together with the name, card number and the expiration date to the phisher.