is Card Verification Methods (CVM)?
Card Verification Method, or CVM , consists of a 3 or 4-digit numeric
code that is printed at the back of the credit card along with (after)
the credit card number, where the card holder's signs in his signature
on the card. This additional 3 or 4 digit numeric code is not embossed
on the card nor available in the magnetic stripe. This additional
3 or 4 digit is code is featured / incorporated on all Master Cards
and Visa cards issued world wide including cards 'Valid only in
India and Nepal'. Visa calls this security feature as CVV2 and Master
Card calls it as CVC2. According to a Gartner Group survey, 98%
of the credit card numbers that the hackers / fraudsters are able
to collect, are through charge slips thrown away by retailers /
restaurants / Shopping Malls etc., which contains the Card Holders
Name, the 15 or 16 digit credit card number and the expiry date.
This extra 3 or 4 digit numeric code is not printed anywhere in
the charge slip. Therefore the hackers / fraudsters cannot use these
credit card numbers on CVM-validated transactions. The purpose of
CVM is to ensure that the person submitting the transaction is in
possession of the actual card, since the code cannot be copied from
charge slips / receipts or skimmed from the magnetic band. CCAvenue
requests your customer to provide this numeric code for your order
and submits it with the authorization through the Citibank gateway.
The card processor (i.e. Visa or Master Card) will then validate
the code supplied with the number on record for the specific card,
and return a match/no-match response. World Wide statistics have
shown that fraud rates on transactions with verified CMV codes have
historically been significantly lower than those for transactions
without CVM (fraud rates on CVM-validated transaction are reportedly
90% lower than those for non-CVM transactions). The Card Verification
Method process is an expensive proposition for the payment gateways
and is therefore not incorporated by any Payment gateway in India
with the sole exception of Citibank.