Your credit card security code is one more way card issuers are trying to protect their clients. With the onset of online and telephone purchasing card companies needed a way to verify that the person making the purchase actually had the credit card in their possession. While it may be easy for thieves to steal your card data they would actually have to have the credit card in their possession to know the security code.
The credit card security code is the three digit number on the back of your Visa or MasterCard. If you turn the card over and look in the right hand corner of the signature strip you will see the three digit security code. On an American Express card the number is on the front of the card on the right side, just above your credit card number. It is important to familiarise yourself with these numbers because they are required for all ‘card not present’ transactions. That includes online sales and telephone purchases, if you are not asked for that number you should be suspect of the transaction.
These credit card security codes were developed specifically to protect cardholders. The number is only listed on the back of the card. It is not part of the data contained on the magnetic strip and it is not printed on sales receipts or on your monthly statement. In addition the number is not raised so it can’t be imprinted in a card reader. The code should only be visible to the cardholder. This makes it easy for merchants to verify that the person on the other end of their ‘card not present’ transaction actually has the credit card in their hand.
Protecting their clients with the addition of a credit card security code helps everyone to rest a bit easier. Card companies know that we are all concerned about credit card fraud and identity theft because it has become so prevalent in the news. Although this extra layer of security requires a few extra moments of your time during a transaction it is intended to protect you. Obviously, if your credit card is physically stolen that person would have the card in their possession and be able to verify the security code. Hopefully, you would notice the theft and report the card stolen which would stop it from being used for any transactions. This security feature is meant to protect you when your card data is stolen, not the actual card.
