Friday, 20 April 2012
Visa’s CVV2 Mandate, What does it mean for merchants?
What is CVV2 and What is it used for?
CVV2, otherwise known as CVC2, is a number printed on the upper right portion of the signature panel on a Visa card. CVV2 is used as an additional measure to prevent fraud by validating the purchase made by the cardholder is done using a genuine card that is linked to a legitimate account. More importantly, the use of CVV2 can potentially provide merchants with additional chargeback protection.
DPS is currently working with all acquirers to ensure the requirements are met for the CVV2 mandate. Please check on our website for the latest CVV2 Mandate updates.
Where is it used?
CVV2 is used for E-Commerce and MOTO (Mail Order/Telephone Order) transactions and comes into effect once credit card details have been entered – either manually by the merchant when processing a manual payment, or the cardholder as a final detail required as part of the required transaction details.
Mandating the capture of CVV2 will mean that the transaction cannot proceed without any of the following three items:
What if I do not have CVV2 in use?
It is highly recommended that any merchants who are currently not validating CVV2 as part of their E-Commerce transaction speak to their website developer / technical contacts as soon as possible, as their ability to process transactions may be affected as a result of the CVV2 mandate.
Please note this has yet to be confirmed by Visa/Mastercard.
When is this mandate taking place?
According to Visa/MasterCard, the effective date for Merchants across the Asia Pacific region to capture Card Verification Value 2 and to include it in the Authorization Response has been set for 1 April 2012.
References: http://www.visa-asia.com/ap/nz/mediacenter/factsheets/includes/uploads/Payments_System_NZ.pdf