CenPOS, a fast-growing payment processing technology, released a new feature for merchants to enable the automatic collection of CVV at the point of sale for key entered transactions including a failed magnetic stripe read. The update supports the new Visa rule for card present transactions.
Effective October 15, 2011, merchants that prompt for and validate the Card Verification Value 2 (CVV) on any Visa CPS Key entry transaction (not to be confused with CPS Card-not-present) will no longer be required to take an imprint of the card to prove that the consumer was present at the time of the transaction. More importantly, merchants that implement this new procedure will no longer be liable for charge-back reason code 81 (Fraud Card-Present Environment).
The CenPOS privilege in the Virtual terminal can be dynamically enabled or disabled by the merchant administrator. When enabled, the Virtual Terminal will automatically prompt for the CVV on any and ALL manually entered transactions. If in a retail environment with an attached signature capture terminal, the customer will still be prompted for their signature as usual.