Card Security Codes

Card security codes were implemented and are used by all Credit Card Companies and Associations as an additional anti-fraud tool. Card security codes are the three-digit numbers found in the signature panels on the back of Visa, MasterCard and Discover cards and the four-digit numbers found slightly above and to the right of the account numbers of American Express cards. You should implement their use in your daily card payment processing procedures and should always ask your customer to provide this code as an additional way to prove that he or she is in a physical possession of the card.

The following procedures should be followed in all card-not-present transactions:

• Ask your customer for the last three digits on the back of a Visa, MasterCard or a Discover card or for the four-digit number above the account number on the front of an American Express card.
• Submit the information obtained from your customer, along with other data, with your authorization request. Use one of the codes in the table below.
  



Indication	Meaning
0	Card Security Code is not Included in the authorization request
1	Card Security Code is Included in the authorization request
2	Cardholder has Stated that the Card Security Code is Illegible
9	Cardholder has Stated that the Card Security Code is not on the Card



• Evaluate the result code for your Card Security Code verification request and use it in determining your action. The table below lists the possible result codes.




Result Code	Recommended Action
M - Match	Go ahead and complete the transaction, unless other fraud indicators are raising a red flag.
N - No Match	A strong signal for fraud, this result code should be taken into consideration along with data from your other fraud-prevention services.
P - Request not Processed	Resubmit your request.
S - Cardholder States Security Code is Not on Card	Make sure the cardholder is looking at the right location, often customers just don't know what is it they are looking for.
U - Issuer does not Support Security Code	In such cases you should rely on your other fraud prevention mechanisms.

The Credit Card Companies and Associations strictly prohibit the storage of Card Security Codes and may impose substantial fines on offenders. You are allowed to store card account name and number, as well as cards' expiration dates. Contact your merchant services provider for additional information on Card Security Codes and how to implement their use in your daily card processing procedures. They will help you weed out fraudulent transactions, reduce chargeback levels and improve your bottom line.