CVV-less Transactions
Card networks aim to enhance domestic card-not-present (CNP) (ecomm) tokenized transactions by making them faster, safer, and more secure. With tokenization, merchants processing transactions on credit cards no longer need to collect CVV for domestic online transactions initiated with tokenized credentials. CVV is only required during initial token provisioning. Once it is Tokenized, the Token along with the Cryptogram serves the purpose. 1/ Tokenized transactions use two factor authentication and encrypted tokens, replacing actual card details. 2/ They are secured with a Token Authentication Verification Value (TAVV) cryptogram for cardholder initiated payments. 3/ Since card networks (e.g., Visa, MasterCard, RuPay) do not transmit CVV to the issuing bank, it cannot be verified, and transactions proceed even if an incorrect CVV is entered. 4/ This approach reduces user friction and increases convenience, as CVV verification is deemed unnecessary for tokenized cards, given the enhanced...