Does capturing the CVV code, the security code on the back of the credit card lower rates? No. This is a long standing myth that even seasoned credit card processing agents prepetuate. Just this past week I educated a 25-year industry veteran that he was incorrectly advising his merchants that it impacted costs. The security code is used only for fraud prevention purposes and NEVER impacts interchange rate qualification, the bulk of costs merchants pay for credit card processing.
The security code is imprinted on the card.
American Express has a 4 digit security code on the front of the card. Visa, MasterCard, Discover have a 3 digit code on the back. A security code mismatch error ALWAYS indicates a fraudulent card. If you have a retail operation, read the Visa Operating Rules and Guidelines for tips on handling these situations.
- CVV = card verification value.
- CVV1 is present on the magnetic stripe.
- CVV2 is not present on the magnetic stripe. This is the number on the front or back of the card that is used for card not present transactions. Visa calls it CVV2, MasterCard calls it CVC2. JCB calls it CAV, American Express calls it 2CID or 4DBC.