When Do You Share Your Credit Card CVV Number And When You Don't?

Lentercoolusername on 25/01/2017 - 15:12

Hi OZbargainers,

I have used my credit card for shopping and paying bills many times, but always wondered why some websites or forms ask for my Credit card CVV number and sometime just needs my card number and other instances they want my card number with expiry.
Whats the deal, what information am I sharing when I give these information.
Should I refuse to share some information if I don't want to? Would it make me more safe in the online world?
I am not worried about about my card details getting stolen or anything as don't have fancy credit limit and when it was stolen, bank has actually helped me to deal with online theft.

Financial

Comments

  • jimbobaus on 25/01/2017 - 15:49
    +1

    CCV was created PURELY as an extra step of security to ensure the cardholder is the one using the card, as in the card is physically in your possession (so to speak) its the equivalent of a digital signature.

  • outlander on 25/01/2017 - 15:54
    +5

    I read an article on this. It seems that the expiry date, and CCV number, are not strictly needed to process credit card transactions. When a store uses them however, *they * pay less in credit card fees, so there is some incentive to ask customers for the number. Stores can store the credit card number, but are not allowed to retrain the CCV, which is why you sometimes still have to enter CCV even if the store has your number on file. However, some stores decide the discount on fees is not worth the hassle to consumers, and will forgo it. This is how Amazons 'one-click' to buy button works.

    So, yes CCV stops identity theft, but its for banks not you.

    • bobbified on 25/01/2017 - 16:44

      Thanks for that insight - I've wondered that too.

    • naritas on 25/01/2017 - 17:01
      +1

      A good response above. We'd add that in our experience as credit advisers who finance a lot of franchises and business operators, certain online payment facilities/stores are security certified to hold CVV numbers. Others are not.

      It would appear from the feedback we have received that the process of getting certified to do so by the card issuers appears to be quite onerous - take an example of Domino's vs Pizza Hut and their online facilities. Our Domino's clients have mentioned numerous times that it was somewhat of a big win that came after a complicated setup process for them to have one click payment processing for orders (IE stored card details and no CVV re-entry requirement).

      Hope this helps.

  • John Kimble on 25/01/2017 - 17:06

    Yep, in theory at a minimum/best practice they need card number, expiry date and CVV.

    I don't understand why they wouldn't use all three…although know of websites that have a CVV field, but don't actually do any validation on what you enter in there! Crazy!

  • entercoolusername on 03/02/2017 - 14:52

    Interesting, thank for the info guys. The other thing which I always wondered was why many banks give 55 days interest free on many credit cards? why is it not 30 days or 31 days?

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