CVV2 stands for "Card Verification Value 2" and is a security feature for transactions where your credit card is not physically present. It is a three or four-digit value that provides payment systems with a check of your credit cards authenticity. The terms CVV2, CVC2, and CID are generally used interchangeably. The verification number helps to verify two things: that your credit card is in your possession and that your credit card account is legitimate.

On a Visa, MasterCard, or Discover credit card, the verification number is the three digits to the right of the credit card number in the signature area on the back of the card. On an American Express card, the verification number is a four-digit code located on the front of the card above the credit card number.

The CVV2 code is a security feature of a debit card consisting of three digits and is located on the back of the card. Credit card companies adopted the CVV2 feature to minimize fraudulent transactions online. Cardholders use the three-digit security code to perform card-not-present transactions on the internet and sometimes manually-entered transactions too.

Technically, the CVV, CVV1, and CVV2 all perform the same validation function, but their major difference lies in how the cardholder uses them. Cardholders use CVV codes for chip cards and contactless cards to generate electronic codes. CVV1 uses the code value during an in-person transaction, and the CVV1 code is encoded on the magnetic stripe of a credit card, such that when the user swipes the card during a transaction, that value is submitted to the bank for validation. Users require the CVV2 code to complete a transaction when their card is not present.