What does CVV number mean on your credit card? Learn how it keeps you safe

Your credit cards consist of a three digit security number which is known as a CVV (Card Verification Value). Often overlooked, the CVV plays a significant role in ensuring the security of your transactions. This number prevents unauthorized payments and also saves you from scams. Let us understand what CVV is and its importance in detail:

Understanding CVV number

The CVV number is a three- or four-digit code printed on your credit, typically found on the back of the card near the signature strip. For cards like Visa, RuPay, MasterCard and Discover, you will find a 3 digit CVV number. However, a number of international credit cards use a 4 digit CVV number placed on the card’s front surface.

The CVV number safeguards your financial data against unauthorized use. Although merchants save card numbers and expiration dates in their systems, the CVV remains protected from the merchant database. Hence, in a case where a merchant’s system gets compromised, your data will still be secured to some extent.

In an offline transaction, you are required to provide your PIN to make payments. However, in order to complete an online transaction, you are required to enter your CVV and then an OTP is sent to your registered mobile number. This step prevents you from fraudulent transactions.

How is your CVV generated?

Bank systems produce CVV numbers from unique card data. The system uses the card’s Primary Account Number (PAN), expiration date, service code, and Data Encryption Standard (DES) keys for protection.

The exact algorithms used in the process remain undisclosed to maintain security. With this method, CVV numbers are created as unique and enhance the security of your card payments when made online.

Tips to keep your CVV secured

Install antivirus software: Install antivirus protection to shield your computer from hackers who use viruses and keyboard tracking programs to steal data.

Secure your home Wi-Fi: Setting a password for your Wi-Fi network protects your internet data from unwanted users.

Use trusted websites: Enter your credit card information only on websites that display HTTPS and show a padlock next to their URL.

Use VPN on public Wi-Fi: To keep your personal information secure on public Wi-Fi you should enable VPN protection. However, you must always avoid using a public network as it is a common place for hackers trying to gain access.

Avoid sharing credit card pictures: Keep your credit card photos away from social media and everyone else to avoid unauthorised use.

Beware of phishing attempts: Don’t give credit card details to unknown emails or messages that ask for your information. Always check if a communication is legitimate before you reply. You must also note that companies do not ask for any OTP or your credit card details over the phone or email as per the RBI guidelines.

Monitor transactions regularly: Review your transactions every day and ensure all charges appear in your account statement. Tell your bank about any transaction that you don’t recognise right away.

In conclusion, you must ensure that you keep your credit card details safe and secure at all times so that you can prevent yourself from falling into any scams. Credit cards can make you form a habit of overspending, hence, avoid using it unnecessarily so that you do not end up in a debt trap.

By keeping an eye on your transactions, you can not only prevent yourself from scams but can also maintain a healthy credit utilisation ratio which can help you maintain a healthy credit score. This way you can grab better deals on your future borrowings.

(Note: Using a credit card carries its own set of risks)