What is Card Validation Code 2 (CVC2) used for?

The Card Validation Code 2 (CVC2) is primarily utilized as an additional security feature on cards. It is a three or four-digit number that provides an extra layer of protection for card-not-present transactions, such as those made online or over the phone. When a consumer enters their CVC2 during a transaction, it helps verify that the person making the purchase has physical possession of the card, thus reducing the risk of fraud.

This code is not solely limited to online purchases; rather, it serves as a broad security measure applicable to various transaction types where the card is not physically swiped. Unlike options that pertain to tracking spending habits or offering promotional bonuses, the CVC2's main function is to enhance security and verify the legitimacy of a transaction. This makes it an essential element in the ecosystem of card security protocols designed to protect both consumers and merchants from unauthorized transactions.