What does the Cardholder Authentication Verification Value (CAVV) provide?

The Cardholder Authentication Verification Value (CAVV) is specifically designed to provide a response to an authentication request. When a transaction is processed, particularly in cases involving online payments, the CAVV serves as a unique code generated during the authentication process. This code allows merchants and payment processors to confirm that the cardholder is authorized to use the designated payment method.

This response helps in assessing the risk of fraudulent transactions, as it signifies that the necessary authentication measures have been successfully completed. The presence of a valid CAVV indicates that the card issuer has authenticated the cardholder, thereby facilitating a smoother and safer transaction process.

The other options do not accurately reflect the purpose of the CAVV. For instance, providing a value for transaction limits, identifying lost cards, or measuring cardholder spending do not align with the role of CAVV in facilitating secure transaction authentication.