Using the CVV number for merchant transactions in your business is important for helping to catch consumer fraud. Identity theft and false card uses are rising sharply in overnight shipping and internet orders and are greatly damaging the consumer market. As such, it is imperative that you learn more about the latest safety measures being taken in the credit card market so that you can help prevent consumers being victims of identity fraud from transactions that are used at your company. The following are the main things you should know regarding the CVV numbers on cards and why this knowledge can be so very beneficial for you as a company owner.
Types of CVV Numbers
There are mainly two different types of CVV codes that you should be familiar with on credit cards. The first main CVV number to become more familiar with is a CVV1 code. This code is typically encoded into the magnetic strip on credit cards and is analyzed when a card is swiped through a payment processing system.
Typically, this is the main code you will want to be familiar with when the main types of transactions being processed by your company take place in a store via face to face methods. The purpose of the CVV1 code is mainly to catch the use of fraudulent cards that weren’t issued by a bank. As frauds are on the rise, banks are also quick to keep up with the changing fraudulent methods by upgrading the technology with this CVV1 code.
The second main type of CVV number you will want to become more familiar with is the CVV2 code. This is the three or four digit code that is typically located in a small box on the back of a credit card. Typically, this type of CVV2 code will be useful if the majority of your company’s transactions are taking place over the phone or through online methods. Since the customer service representative of your company won’t be physically near the customer when accepting credit card payments over the phone or online, this CVV2 number is important to obtain to ensure that the person paying by credit is actually the owner of the card.
Specifically, when a customer is able to provide the CVV2 number is proves that they physically have the credit card with them and didn’t steal the number from an unsuspecting citizen. One common misconception regarding CVV numbers is that people often think the CVV number is the same as their card pin. As such, there are certain things you can do to inform your employees of the importance using the CVV number as well as what this code is.
Stopping Identity Fraud
Minimizing the amount of identity fraud that takes place in your company’s transactions is immensely important. Not only will this practice help increase the reputation of your company as being a responsible and legitimate practice but will also increase consumer confidence in doing business with you. It is very important to inform your employees about using the CVV number as well as signs of identity fraud during transactions.
When your employees are informed of what CVV numbers are and why they should be used, they will be more prepared to identity cases of identity theft when they occur. Additionally, when employees know where CVV numbers are located, they can assist consumer in locating the numbers when the codes are required to complete transactions through credit card processing systems. Every business owner must do their part to reduce the occurrences of fraudulent transactions and a good starting point for implementing these practices is with understanding the important of using the CVV number.