One of the core attributes of being a successful merchant is that you should be dynamic enough to identify cool deals and make the most of them per time. If you are not smart and careful enough, you may miss out on some vital details in an ever-dynamic environment. The reason for this is that the payment technology constantly evolves and grows each year.
Merchants are often of the opinion that payment security is perhaps one of the complex things to comprehend. This is why we have taken out time to address some of the issues relating to online shopping without CVV code. We will also look at how the CVV code affects the checkout process and what makes this mysterious code so important.
Online shopping without CVV code
When it comes to using CVV codes for transactions, it is largely up to the merchants to decide. It is usually more of a case of them trying to fight chargebacks than it is about your security. It is also interesting to note that although most of the payment gateways require that you input the CVV code, not all of them verify if it is authentic. But at the end of the day, the only way you can find out is by checking out the website and confirming if it does not require a CVV code. But if you if find yourself at a store and swipe the card, the CVV number will be automatically provided.
What Exactly Is A CVV
Also known as CVV2, a CVV is a 3 to 4 digit number that gets printed on the credit cards you come across these days. It is not often stored in the magstripe and EMV chip because the main reason is to make sure that whoever purchases will have the card on their person. The main aim of using this CVV code is to avert a situation where there would be unauthorized use of the card in a transaction.
There are quite several names for the CVV numbers because a number of the payment brands do not subscribe to the same name. Some refer to it as Card Verification Value, others call it Card Identification Number or CID and some other people know it as Card Verification Code CVC. Usually, MasterCard, Visa, and Discover place these codes behind their cards close to space for a signature. American Express, on the other hand, puts the CID at the front of the card. Irrespective of where you find this code, it does the same thing. What it does is to assist the merchants to verify that the owner of the card is the one that is carrying out the transaction.
What Makes A CVV Code So Important?
If you accept payments from an online shop or over the phone, using a CVV code will give you an alternative way to verify that the holder of the card is purchasing from you. This, however, is not the only reason why you should have a CVV number while transacting.
Most of the big card companies began requiring that merchants make available their codes during card, not present transactions starting from 2018. The reason this was done was because of the rise in online fraud. Aside from the issue of fraud, the CVC code also helps to address chargeback issues. This is a situation where a customer would request that the money from certain payments should be reversed. Chargebacks often occur due to several reasons, and even though a CVV code will not be able to shield you from all of them, it helps indicate that the customer was privy to the sale in the first place. It, therefore, suffices to say that the CVV code helps in averting friendly fraud which is a situation where a customer claims that they did not buy any item from you when they knew that they did.
What Is The Idea Behind CVV Checks For Merchants?
It should be noted that only cards, not present transactions need you to use a CVV code. What this means is that even if the potential customer is there, you will receive the CVC if you manually input the credit card data via the virtual terminal or mobile POS application.
If perhaps you receive any payments online, your clients would have to input the CVV code while checking out. You must know that any merchant who processes certain in-person payments using a card reader does not need to worry about using CVV code. They also should not issue out their codes willingly.
CVC Code Entry For eCommerce
For people who have eCommerce presence, a CVC code is often required by several payment platforms for your transaction to be processed. By default, all online transactions are considered cards, not present transactions and as a result of this, you ought to be conscious of the inherent risks. Fraudsters are often on the lookout for small businesses in search of possible loopholes. This is why you must possess a PCI compliant payment and processor gateway.
Imputing The CVV Numbers For Manual Transactions
if you already use a PCI compliant payment processing institution, you would have observed that the payment form for manual entry already has a place for the CVV code. The reason for this is that the payment companies will ask for it during a card, not present transaction. Processors these days are aware of the scenarios where it is applicable to request for CVV code. In this situation, you or your customer would be required to input it if it is necessary. Also, you should know that the CVVs number is not required at all if you intend to swipe or tap the card at your outlet.
Are There Additional Online Security Tools You Should Know?
Yes, there are. One unique feature you ought to be mindful of when you accept payments via your online platform is the Address Verification System. In this case, the processor would authenticate the address of your customer while checking out. The cost implication of this feature is largely dependent on the processing company you opt to use. Several processors often put the feature automatically along with their overall pricing.
However, if you are required to part with some extra amount, do know that using AVS would to a long extent lower the risks of you facing fraud. Transactions that are processed using AVS may have lower risk factors and may even help you save some money.
One other technology you should know is the 3D secure technology. Using this technology helps you have an extra authentication step during the checkout process. The actual process does vary depending on the issuing bank. However, for business owners, the moment you must have implemented this procedure, you do not have to do anything else. You should enquire from your payment processor if 3D security is an in-built feature.
Tips To Help You Avoid Identity Theft
It would interest you to note that there are about 10 trillion probabilities when it comes to combining credit card numbers on planet earth. So far card users are probably using only 65 million of them. What this means is that the probability of a criminal stumbling upon a valid number combination is quite low. This, however, does not mean that you are a hundred percent safe. Issues of credit card fraud and identity theft have become increasingly prominent over the past few years. This is why it is important to know how to meander the murky waters infested with sharks of fraudsters.
The first tip you should know is that you should not use debit cards because they don’t offer as much fraud protection as credit cards do. Also, you shouldn’t make transactions on open networks. Furthermore, ensure that you do not share your numbers with representatives that are not verified. In addition to this, always ensure that you do not email your card number as some email hackers use certain tools in scavenging for numbers that could be credit card accounts.
Finally, ensure that you do not share your credit card number where other people would hear.
The main aim of this post is to help you better understand the importance of a CVV number to your business. We do hope that we have been able to do justice to it in that regard. Because payment companies make it compulsory for merchants to collect the CVV number during online or manual transactions, you will have to search for a company that operates with the latest standards. You should also be mindful of the fact that merchants will not be able to store the CVV data in such a way that they would be PCI compliant hence you should never write it down.