Hi kids, The topic of that 3-digit code at the end of your credit card number came up here on ET a few weeks ago, and one of our members mentioned that you SHOULD NOT give this code to online merchants (or anyone else). Well, I was on the phone with my credit card issuer today (one of the larger ones) and I happened to ask the customer service representative if this 3-digit code should ever be given to an online merchant or a merchant over the phone. Her response was, "NO! IT'S LIKE GIVING AWAY YOUR SOCIAL SECURITY NUMBER!" So, in no uncertain terms, if a merchant pressures you for this number (this happened to a friend of mine when she paid her telephone bill over the phone with her credit card - and this was a Baby Bell utility who wanted this number, AND the rep got all b!tchy when she refused to give it to them), DO NOT GIVE IT TO THEM. TELL THEM TO F^CK OFF AND CALL YOUR ISSUING BANK IF THEY HAVE A PROBLEM WITH IT.
Like giving away your SS#? Then what about when you pay by plastic in a store or restaurant? Why is that not a risk and it is when dealing with an online merchant?
If that is true then I would stop using that card because the card issuer does not care to provide appropriate customer service. OK, take a deep breath. Now, then I hear something outrageously stupid, I like asking questions. So, here is one that I would ask that rep before telling her to get lost. <i>If the customer is not supposed to give the merchant that number, then may be she can explain what the fuck this number is for?</i> Well, turns out that this number is supposed to be given to merchant as a fraud preventing measure - http://retailindustry.about.com/library/uc/02/uc_fraud1.htm#codes. The idea is that no merchant stores those V-codes, neither online, nor break-n-mortar ones. Therefore, if the cc# gets stolen (store clerk, hacker, whoever), the crook has your cc# but not your V-code. So, by asking for V-code the merchant is not trying to trick but, quite in reverse, is actually trying to protect you by ensuring that it is you, the card owner, who hands his card right before his own eyes and sees that V-code is placing the order.
Exactly right. Also for the asshole-type stores like RSH that still take an impression of the front of the card then keep a copy in the cash drawer for anyone to steal, that unembossed 3-digit code remains unknown to the thief. Problem is, until that code is mandatory and won't work without it, it's almost useless to prevent unauthorized use.