The term CVV2 stands for “Card Verification Virtual Private Number 2”. CVV2 is a two factor authentication system that verifies the identity of the cardholder in a card payment transaction. The cardholder must produce their private key in order to generate a Challenge-Code, which encodes the details of the digital transaction. The challenge-code then becomes a part of the public key infrastructure (RKP), where merchants and banks store the digital certificates, called public keys, that are used to transact financial instruments like credit cards, electronic funds transfer and online banking. These certificates are also called digital certificates.


The biggest benefit of CVV2 is that it makes it easier for merchants and banks to determine whether the card-not-present customer has authorized the transaction or not. This is because without the use of the private keys, a customer cannot prove ownership of an item when they don’t have their private key. But CVV2 does have some drawbacks for merchants. Since this type of authentication system is more expensive than the traditional method of card-based authentication, there are potential customers who may prefer the more convenient, traditional method of authentication.

To solve this problem, some merchants have chosen to implement merchant authentication with a dedicated hardware device such as a reader/writer or a smart card reader. This option has the major drawback that the device needs to be physically present for all authorized transactions, which means that the costs associated with establishing the system can become high. On the other hand, the smart cards can only be used for specific types of purchases and they are subject to theft.

Other merchant authentication options include physical access control, or MAC, which requires the issuer to show proof of validating identity before processing a transaction. If the issuer observes that a card-not-present customer fails to authenticate, the transaction will fail. There are some issuers that allow only certain devices to process these transactions. For example, some issuers block transactions from the unauthorized party if the card does not contain a particular transponder or if the transponder is stolen. The physical access control option can be very effective but it may not be sufficient for all issuers.

Some merchants are reluctant to use cvv2 because they believe that card-not-present transactions are vulnerable to fraudulent use. They argue that fraudsters can trick the customer into entering their account number where they can commit a fraud. However, fraudsters will not be able to know whether the customer entered the account number in a secure environment (offline banking). Hence, the account number will still be captured even if the customer leaves the store and enters the account in a different location. Therefore, the claims that the card-not-present transactions are easy to fraudulently use do not hold true.

Besides being susceptible to fraud, the use of the CTR codes is also not a very reliable security feature. CTR, short for credit transaction code, are used mainly for card payments. A hacker can intercept the CTR code during a card transaction and use it to commit fraud using the stored account number printed on the back of the card.

To solve this problem, many companies have added an additional protection against fraud with the help of the virtual credit card machine (vccm) or merchant account gateway (mas). VCCM andmas are smart card processors that add a layer of security to your cvv2 system and make it difficult for hackers to obtain access to the stored account number. Since the fraudsters cannot directly control the number printed on the back of your card, you have a better chance to detect the fraudulent use of your card by the fraudulent party.

Virtual credit card machines are available to support all major brands of credit cards. They are designed to make it easier for the customers to complete their card transactions online. Once you enter the credit card digits to process the transaction, you will be provided with a confirmation page. If the processed transaction goes through, the transaction information will be recorded and an email will be sent to the main toolbar. The main toolbar will then display the details regarding the processed transaction including the merchant account information. If the information is found to be authentic, the address of the merchant account will also be displayed.