What does CVV stand for in the context of card transactions?

In the context of card transactions, CVV stands for Card Verification Value. This security feature is a three or four-digit number printed on the back or front of a credit or debit card. It is designed to provide an additional layer of security during card-not-present transactions, such as online purchases. The CVV helps to verify that the person making the transaction has physical possession of the card itself, which reduces the risk of fraud associated with stolen card information. By requiring the input of the CVV when completing a transaction, merchants can better ensure the authenticity of the transaction and protect both the cardholder and the issuer from unauthorized use.

Understanding the function and significance of the Card Verification Value is crucial in the payment processing industry, as it plays a key role in reducing fraud and enhancing security for electronic transactions.