Explanation of Card Verification Method (CVM) and why ASSTR requires it

The Card Verification Method (CVM) is a 3 or 4 digit number printed on the back of the credit card. It is located after the credit card number on the signature panel (see diagram, left). The CVM is not embossed on the card and is not contained within the magnetic stripe. The CVM is present on all MasterCard and Visa cards issued worldwide. Visa calls its version of CVM 'CVV2' and MasterCard calls it 'CVC2'.

The purpose of CVM is to ensure that the person providing the credit card number is in possession of the actual card. Because the code cannot be copied from charge slips / receipts or obtained from the magnetic strip, the only way to obtain the number is via actual possession of the card. ASSTR's credit card processor (i.e. Visa or Master Card) validates the CVM number supplied with the code on record for the given card number.

According to a Gartner Group survey, 98% of credit card numbers that criminals are able to collect are from charge slips thrown away by retailers such as restaurants and shopping malls that contain the Card Holder's name, the credit card number and the expiration date. Because the CVM code is never printed on a receipt, criminals have a much harder time committing fraud with online merchants conducting CVM-validated credit card transactions.

World Wide statistics have shown that fraud rates on transactions with verified CVM codes have been significantly lower than those for transactions without CVM. Specifically, fraud rates on CVM-validated transaction are reportedly 90% lower than those for non-CVM transactions.