Cardholder Authentication Verification Value (CAVV)

The Cardholder Authentication Verification Value (CAVV), is a security measure implemented by Visa for their 3-D Secure protocol specifically designed for card-not-present transactions.

This unique value is generated when the cardholder’s bank validates an authentication request during an online transaction. The purpose of the CAVV is to affirm that the transaction has been authenticated, thereby diminishing the potential for fraud. It is generated by the card issuer once the cardholder’s identity has been authenticated during an online purchase process.

The CAVV is then encrypted and transmitted alongside the authorization request for the online transaction to the merchant’s bank.

The process of generating a CAVV begins when a cardholder initiates an online transaction and enters their payment information. This triggers the 3-D Secure protocol, involving a direct communication between the cardholder’s bank and the transaction gateway. The cardholder may be asked to verify their identity through various methods such as a password, a biometric scan, or a one-time passcode. Once the cardholder’s identity is successfully verified, the card issuer generates the CAVV as a token of this authentication. This token is a cryptographic representation of the authentication’s validity. It is then attached to the transaction data and sent to the merchant’s bank as part of the authorization request. The presence of a valid CAVV signifies to all parties involved in the transaction that the purchaser has been authenticated, thus providing an added layer of security against unauthorized card use.

In conclusion, the Cardholder Authentication Verification Value (CAVV) serves as a critical component in enhancing the security of online transactions. This verification value plays a vital role in the 3-D Secure protocol by Visa, providing an additional layer of safety against fraudulent activities in card-not-present transactions. By verifying the identity of the cardholder during the purchase process, the CAVV assures merchants, banks, and card issuers of the transaction’s legitimacy. Ultimately, the implementation of the CAVV, as a sophisticated verification value, marks a significant advancement in online payment security, offering peace of mind to all parties involved in the digital marketplace.