A Validation Code is a security feature used in card transactions. It is the three or four-digit number typically found on the back of a credit card.
Also known as CVV (Card Verification Value), this code is asked during online transactions to ensure the person entering the information is in physical possession of the card. This is particularly important in card-not-present transactions, such as online purchases, where the risk of fraud is higher.
By verifying the CVV, merchants can reduce the risk of accepting fraudulent transactions and protect themselves against chargebacks. Additionally, the CVV is often used in conjunction with other security features — such as the card number and expiration date — to provide multiple layers of protection.
It’s worth noting that the CVV is different from the PIN (Personal Identification Number), which is a secret code known only to the cardholder and used for authorizing transactions at ATMs or point-of-sale terminals.
Ultimately, the CVV is a critical security feature that helps to safeguard cardholder data and reduce the risk of fraud in card transactions.