What role does the Card Verification Service play in a transaction?

The Card Verification Service (CVV) is designed to help secure card-not-present transactions by validating the card verification value, which is a code embossed or printed on the card. When a transaction occurs, the CVV is sent to the card issuer to confirm that the code matches the one on file, ensuring that the person attempting to make the purchase has physical possession of the card. This process significantly reduces the risk of fraud as it verifies that the cardholder is legitimate and prevents unauthorized transactions.

By validating the card verification value on behalf of the issuer, the Card Verification Service serves as an additional layer of security for transactions, particularly in online and telephone transactions where the physical card is not presented.