cardverification

Card verification is a broad term for techniques used to confirm that a payment card is valid and that the person initiating a transaction is authorized to use it. These methods are common in card-not-present transactions to reduce fraud and chargebacks.

One primary method is the Card Verification Value, Code, or Code (CVV/CVC) — a three-digit code on the back of most cards, or a four-digit code on the front for American Express. Merchants typically request this code during online or phone transactions; since the value is not stored after authorization, it helps prove card possession without exposing the number itself.

Address Verification System (AVS) is another tool used mainly by online merchants. AVS checks the billing address provided by the customer against the address on file with the issuer. Across networks, AVS responses range from full match to partial or no match, and use varies by issuer and country.

Cardholder authentication protocols, notably 3-D Secure (3DS), add an additional step that the cardholder completes with the issuer, such as a one-time password or biometric verification. 3DS 2 aims to improve usability on mobile devices while maintaining risk controls, and can shift liability for fraud in some regions.

Other techniques include tokenization (replacing card data with a non-sensitive token), device fingerprinting, and risk-based authentication. PCI DSS standards discourage storage of CVV data and require secure handling of card information.

Limitations exist: codes can be shared, AVS is not universally supported, and not all transactions require verification. Card verification is one element of a broader payment security strategy.