How Is a Debit Card Coded?
Banks take precautions to reduce the risk of fraud and theft for account holders. A debit card is a common payment method that is more secure than you may realize. Codes are encrypted onto the debit card to verify that the card is the customer's and to prevent thieves from making counterfeit copies with your account number.
Other People Are Reading
-
CVV1 Code
-
Your debit card contains extra numbers encoded on the magnetic strip. Visa refers to the first of these extra numbers as a Card Verification Value, or CVV; MasterCard calls it the Card Validation Code, or CVC. The code is verified when you use the card to make in-store purchases. When you swipe your card, authorization is confirmed, but, to ensure security, the code is never printed or stored.
CVV2 Code
-
The second Card Verification Value, or CVV2, is a security code generally required when the debit card is not present. The CVV2 number is usually the last three or four digits printed on the signature panel. If you are making a transaction over the phone, you will likely be asked to provide your CVV2 number. The merchant sends the number you provide to the credit-card issuing company for verification.
-
Coding Requirements
-
All MasterCards were required to add CVV2 codes by January 1, 1997. CVV2 codes became a requirement for Visa in 2001. Older cards displayed the entire credit card number printed on the back of the card, near the signature line, followed by the CVV2 number. Newer cards use only the CVV2 code.
Other Types of Coding
-
The first digit of your credit-card account number represents the Major Industry Identifier number. Each number designates a specific category. Debit or credit cards issued by financial and banking institutions begin with a "4" or a "5." The first six digits of your debit card number are the issuer identification; the remaining digits identify your individual account.
-
