Using credit card verification to prevent fraud provides another layer of protection to cardholders. We all want to be able to use are credit cards with confidence, but with constant news about credit card fraud it is difficult to do that. The issue facing card owners, merchants, and providers has a lot to do with online and telephone sales. Some people might say that they do not use the Internet to make transactions or by things over the phone but they probably do not think about all the little transactions they actually make. Consider ordering flowers or take out and using your card to pay for it, that is an over the phone sale. Card verification is not just for the Internet and you need it more than you probably realise.
When someone makes a transaction on the phone or online it is considered a card not present transaction. The merchant has to run a credit card without the owner to sign or punch in their PIN for verification. By asking for the credit card verification number the merchant is able to verify that the person placing the order actually has the card in the possession.
It is entirely too easy for your card information to be stolen from card readers and documents. Then fake cards are made or the information is used to make purchases. But, the card verification number can only be seen by the person holding the card. The number is on the back of Visa and MasterCards in the signature strip and on the front of American Express cards above the card number. It is not included on the magnetic strip data of the card nor will it be on a billing statement or receipt. That is what makes it an excellent way to verify that the person making the transaction actually has the card with them.
Of course, credit card verification would not work if your card was physically stolen. Hopefully, you would realise it was missing and report it stolen and fraudulent transactions would be stopped that way. Card security is something that everyone who owns a credit car is concerned with because even the thought of having your finances breached is incredibly scary. Understanding why card verification is necessary and the level of protection it provides should make it a little easier to take the few extra moments merchants require to verify your account.
