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Definition
CVV, or Card Verification Value, is a security code printed on a payment card used to help verify that the person making a transaction has physical possession of the card. It is typically a three or four digit number located on the front or back of the card.

Why it matters
CVV adds an extra layer of protection for card not present transactions by helping merchants verify that the purchaser has the actual payment card. While not foolproof, it helps reduce certain types of payment fraud.

Example use case
A customer shops online and enters their card number, expiration date, and CVV during checkout to complete the purchase.