Recurring charges without CCV/CVV codes
My understanding is that PCI regulations prohibit credit card security codes from ever being stored. This means they can only be used at the time someone manually enters the CCV number, but cannot be used for any future transactions.
Does this mean that future transactions might have a higher processing fee, discount rate, or transaction fee? Or does not providing a CCV code with a transaction never affect the processing costs?
I recall reading somewhere a while back that there is some technique where automated future transactions can associate with a previous manual transaction that did include a CCV number and that doing this is essentially the same as providing a CCV number. However, I don't know if that information was accurate or fud, nor can I locate where I read this any longer. Does anyone know if this is the case, and if it is, how does it work?
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Support Staff 1 Posted by Marc Guyer on 18 May, 2011 09:47 PM
Hi Tauren. Your understanding of this issue is impressive.
This depends on your processor. However, I've never heard of the presence of CVV reducing a fee.
CG sends card data to the gateway for storage and future use. When CG issues a recurring transaction, the gateway sends the existing card data (minus the CVV) to the processor.
2 Posted by tauren on 18 May, 2011 11:05 PM
Thanks for this explanation, and it is good to hear that most if not all processors do not charge more when a CVV is not present.
I have a feeling that my memory of associating a transaction with another one is flawed. I'm guessing that what I had read is that the point of using CVV is to reduce fraud. So if you use CVV the first time and the transaction goes through, then the user of the card you have stored has already shown you that they are likely an authorized card user. This means that future transactions on that stored card are likely to not be fraudulent either.
Thanks for your help!
Dean closed this discussion on 16 Jan, 2013 05:16 PM.