Cardholder Authentication Verification Value, or CAVV, are potential responses for customer initiated Visa debit and credit card transactions where the Verified by Visa, or Vbyv, authentication method is used. E-commerce, online payments, and Electronic Invoice Presentment & Payment (EIPP or EBPP) are all solutions in which a customer can participate in self-authentication.

How does CAVV impact interchange rates, the bulk of credit card processing fees?

To qualify for CAVV interchange rates, merchants must register for Verified by Visa through their merchant services provider, and must use a payment gateway that supports the service as part of the transaction process. In addition, other rules apply such as settlement time and more; the latter part can be managed automatically with an intelligent payment gateway.

• The best Visa Card Not Present Key entered transaction credit rate is 1.80%.
• The same Visa transaction as above, but with a valid CAVV response is 1.70%.

How does CAVV impact fraud risk?

If a passed validation response is returned, then fraud risk shifts to the card issuer. Responses other than ‘fail’ may warrant additional scrutiny as part of a layered approach to mitigate fraud risk.

CAVV Transaction Response Code Values:

• “ ” –  Blank CAVV or AEVV Not Present
• 0 – CAVV or AEVV Not Validated due to erroneous data submitted
• 1 – CAVV or AEVV Failed Validation – Authentication Transaction. This is an indication of potential bad or fraudulent data submitted as the CAVV/AEVV.
• 2 – CAVV or AEVV Passed Validation – Authentication Transaction
• 3 – CAVV or AEVV Passed Validation – Attempted Authentication Transaction. (Determined that the Issuer ACS generated this value from the use of the Issuer’s CAVV/AEVV key[s]).
• 4 – CAVV or AEVV Failed Validation – Attempted Authentication Transaction. This is an indication of potential bad or fraudulent data submitted as the CAVV/AEVV. (Determined that Visa generated this value from the use of CAVV/AEVV key[s]).
• 5 – Reserved for future use – NOT USED
• 6 – CAVV or AEVV Not Validated – Issuer not participating in CAVV/AEVV validation. This value is generated when an Issuer requests the “do not verify” flag to be established for its BINs. This parameter enables an Issuer to temporarily stop CAVV/AEVV verification while resolving CAVV/AEVV key issues. VisaNet processes this value as a valid CAVV/AEVV.
• 7 – CAVV or AEVV Failed Validation – Attempted Authentication Transaction. This is an indication of potential bad or fraudulent data submitted as the CAVV/AEVV. (CAVV/AEVV generated with Visa Key)
• 8 – CAVV or AEVV Passed Validation – Attempted Authentication Transaction. (CAVV/AEVV generated with Visa Key)
• 9 – CAVV or AEVV Failed Validation – Attempted Authentication Transaction. This is an indication of potential bad or fraudulent data submitted as the CAVV/AEVV (CAVV/AEVV generated with Visa Key – Issuer ACS unavailable)
• A – CAVV or AEVV Passed Validation – Attempted Authentication Transaction. (CAVV/AEVV generated with Visa Key – Issuer ACS unavailable)
• B – CAVV or AEVV Failed Validation – Attempted Authentication Transaction. This is an indication of potential bad or fraudulent data submitted as the CAVV/AEVV. (CAVV/AEVV generated with Visa Key)
• C – CAVV or AEVV Not Validated – Attempted Authentication Transaction. Issuer did not return a CAVV/AEVV results code in the authorization response. VisaNet will treat this as valid CAVV/AEVV if the Issuer approves the authorization.
• D – CAVV or AEVV Not Validated – Authentication – Issuer did not return a CAVV/AEVV results code in the authorization response. VisaNet will treat this as valid CAVV/AEVV if the Issuer approves the authorization.
• I – Invalid Security Data
• U – Issuer does not participate or 3-D Secure data not utilized.
• Default space filled

Note, other card brand authentication terms are AEVV, American Express Verification Value and MasterCard Universal Cardholder Authentication Field (UCAF^™). All of these, including VbyV, use the global standardized 3-D Secure XML security protocol. Payment gateways can implement 3-D Secure in different ways, which can potentially impact profits and risk.

For CenPOS solutions to enable customer cardholder authentication, including payment gateway, contact Christine Speedy today. Not all solutions work alike, contact an expert.