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How CVV-Less Payments Simplify the Checkout Process


When shopping online or offline, customers expect transactions to be simple and secure. There are hundreds of payment options and dozens of credit and debit cards from various issuers to choose from. Customers can now conduct transactions without a card. When you save a card online, you don’t even have to enter the CVV for certain transactions. For CVV-less transactions conducted through a card-not-present (CNP) flow, users are not required to enter a CVV. This experience is intended to provide a quicker, easier, and more convenient payment process while maintaining the highest level of security.

By eliminating CVV entry from the payments process, customers will see a 10% reduction in payment failures while their checkout time will be shortened by up to 5 seconds. This blog will explain to you everything you need to know regarding CVV-less Payments.

What are CVV-less payments?

Card Verification Value (CVV) is a three-digit or six-digit number that can be found on the back of a credit or debit card. It is used to confirm the identity of the cardholder for card-based digital payments, regardless of whether the card in question was saved during that business’ checkout process. When the CVV is entered incorrectly, this manual entry requirement frequently results in 5–10% of failed credit and debit card payments.

The elimination of CVV entry from the payments experience is anticipated to reduce payment failures by up to 10% and speed up the checkout process for customers using cards by up to 4-5 seconds. This will allow users to conduct transactions on their preferred websites and applications where their cards have been saved without referring to their cards, and with a reduced risk of payment failure and friction.

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What is a CNP transaction?

When neither the cardholder nor the credit card is physically present during the transaction, it is referred to as a card-not-present (CNP) transaction. It is most commonly used for orders placed over the phone, fax, internet, or mail.

A transaction is only deemed to be a “card present” if payment information is physically recorded at the point of sale. When an EMV chip is processed or when cards are physically swiped, tapped, or dipped through a reader, this takes place.

Examples of transactions using a card not present

Several CNP transactions are likely encountered daily. They consist of:

  • When a customer buys goods over the internet or through an e-commerce transaction, they are making an online purchase.
  • Phone orders, in which a customer provides his or her payment method over the phone.
  • Automatically billed recurring payments.
  • Online-paid bills for invoices.

What is a CNP transaction vs a card-present transaction?

When a customer enters their card information online to complete a transaction remotely, it is referred to as a CNP transaction. In contrast to that, a card-present transaction is when a person’s payment information is taken in person at the time of the sale. This happens when a card is swiped, tapped, or inserted, or when an EMV chip is processed at a POS terminal.

Benefits of CVV-less Payments

CVV-less payments, which refer to transactions that don’t require the Card Verification Value (CVV) code typically found on the back of credit or debit cards, offer several benefits for both merchants and customers. Here are some advantages of CVV-less payments:

1. Convenience

CVV-less payments provide a more seamless and convenient payment experience for customers. They eliminate the need to enter the CVV code during online transactions, reducing friction and streamlining the checkout process. This can lead to increased customer satisfaction and improved conversion rates for merchants.

2. Enhanced security

While it may seem counterintuitive, CVV-less payments can offer enhanced security compared to traditional methods. Technologies like tokenization and 3D Secure 2.0 help protect sensitive card data by replacing it with unique tokens or by implementing advanced authentication measures. This reduces the risk of card data theft and unauthorised use.

3. Faster transactions

With CVV-less payments, customers can complete transactions more quickly, as they don’t need to locate and enter the CVV code. This can be particularly beneficial in situations where speed is crucial, such as during high-volume online sales events or when making purchases on mobile devices.

4. Mobile-friendly payments

CVV-less payments are well-suited for mobile commerce, where convenience and speed are paramount. Mobile users often find it cumbersome to enter CVV codes on small screens, and CVV-less payments address this issue by offering a frictionless payment experience on mobile devices.

5. Reduced fraud risk

While no payment method is entirely immune to fraud, CVV-less payments can help mitigate certain types of fraud. Tokenization and advanced authentication mechanisms add layers of security, making it more challenging for fraudsters to use stolen card data for unauthorised transactions.

It’s important to note that while CVV-less payments offer benefits, merchants and customers should remain vigilant and adopt additional security measures to protect against potential risks and fraud.

CVV-less payments for tokenized cards: how it works

The Reserve Bank of India has been rightfully concerned about the security and privacy of customers using their debit or credit cards for P2M (Person to Merchant) transactions. Despite the scepticism of some, the Indian payments ecosystem was protected in its infancy by the RBI’s insistence on two-factor authentication (2FA), which ensured that even if debit or credit card numbers or CVVs were compromised, criminals could not use this information to make fraudulent payments. When data breaches at businesses and payment providers exposed the card information of millions of Indian customers, the RBI’s decision was proven correct.

This cycle was repeated when the Reserve Bank of India (RBI) issued its card tokenisation guidelines, going one step further to protect Indian consumers. These regulations ensured that only card networks and Indian banks could store actual card information; payment intermediaries and businesses could only store card tokens. Again, sceptics asserted that having these safeguards in addition to 2FA would slow down and add friction to card payments.

The CVV-free payment system, however, can bring us a whole new sense of seamless, secure card payments. Compared to traditional card payments that require CVV entry and two-factor authentication (2FA), CVV-free payments are faster and just as secure. As a result, this new feature ensures that Indian e-commerce and digital payments remain secure over the long term and that customers and businesses have access to the digital capabilities they need to expand and assist India in achieving its economic objectives.

Security measures for CVV-less payment

While CVV-less payments can offer convenience, it’s important to implement security measures to protect against potential fraud. Here are some security measures for CVV-less payments:

1. Tokenization

Tokenization replaces sensitive card data (such as the card number, expiration date, and CVV) with unique tokens. These tokens are used for payment processing instead of actual card details. Tokenization ensures that sensitive information is not stored or transmitted, reducing the risk of data breaches.

2. Two-factor authentication (2FA)

Implementing 2FA adds an extra layer of security to the payment process. This could involve sending a verification code to the cardholder’s mobile device or using biometric authentication (such as fingerprint or facial recognition) for authorisation.

3. Device and location monitoring

Monitor the device and location from which the payment is initiated. Unusual device or location changes can raise red flags and trigger additional security measures, such as requesting further authentication or notifying the cardholder.

4. Risk-based authentication

Implement risk-based authentication mechanisms that evaluate various parameters associated with the transaction, such as transaction amount, frequency, location, and user behaviour. Based on the risk assessment, additional security measures can be applied for high-risk transactions.

5. Fraud detection systems

Employ advanced fraud detection systems that utilise machine learning algorithms and behavioural analytics to identify suspicious patterns or anomalies in transaction data. These systems can help detect and prevent fraudulent transactions.

6. Transaction limits

Set transaction limits for CVV-less payments to mitigate the impact of potential fraud. By restricting the maximum transaction amount or imposing limits on the number of transactions within a certain timeframe, you can reduce the risk associated with fraudulent activities.

Remember that security is an ongoing process, and it’s essential to stay updated with the latest security practices and adapt to evolving threats in the payment industry.



CVV-less payments have revolutionised the way we make online transactions. With their convenience, enhanced security measures, and improved user experience, they offer significant benefits to both merchants and customers. By eliminating the need to enter the CVV code, CVV-less payments simplify and expedite the checkout process, leading to higher conversion rates and customer satisfaction. Tokenization and advanced authentication mechanisms ensure the security of sensitive card data, reducing the risk of fraud. CVV-less payments are particularly well-suited for mobile commerce and have gained global acceptance, enabling seamless transactions across borders. While additional security measures are still necessary, CVV-less payments represent a significant step forward in the evolution of online payments, promising a more convenient and secure future.


1. What is the CVV?

Ans: CVV is the three to six-digit number, typically located on the back of the card, that is used to verify the cardholder’s identity in card number-based transactions.

2. What exactly is the CVV-less feature?

Ans: For token-based transactions, Card Networks and Issuing Banks no longer require CVV values. This feature improves the user experience by allowing card payments to be made without entering the CVV. Other than not collecting or entering the CVV value, the payment flow remains unchanged.

3. What exactly is tokenization?

Ans: Tokenization is the process of replacing the card number with a substitute value called a Token. This token is restricted to a Merchant, a Customer, and a Token Requestor, thereby securing the payment process.

4. Is there a maximum transaction amount for this function?

Ans: This functionality does not impose a limit on transaction amounts. Cardholders can make payments up to the limits imposed by existing restrictions such as card limit, account type, etc.

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