Visa launches CVV-free payments

Visa has introduced a new feature in India that will allow customers to make online payments without having to use a CVV number. This feature applies to tokenised credit and debit cards and is only available for domestic transactions in India. The unique code will replace the 16-digit card number and other details of the card. Once a user tokenises their card, it is secured with a unique code, and transactions are completed using a two-factor authentication process. This new feature is expected to protect users from cyber fraud since the token cannot be used on another platform.

Zomato and Razorpay are two merchants that have already started using Visa’s new CVV-free service. Visa’s other service, Visa Safe Click, which was launched to eliminate the need for CVV and OTP authentication for transactions below USD 24.45, has been put on hold due to regulatory pressure to tighten security standards. If the regulator approves, both services may be merged by Visa. The increasing popularity of UPI payments makes Visa’s new CVV-free service for tokenised cards likely to be well-received in India.

Tokenisation is a security measure that replaces sensitive information, such as credit card details, with a unique code. Tokenisation helps to protect sensitive data from cyber attacks and fraud. It is widely used in the payment industry to secure online transactions, where sensitive data needs to be shared between different parties. Tokenisation is often combined with other security measures, such as two-factor authentication, to provide enhanced security for users. It can be used for various types of data, including credit card numbers, bank account numbers, and personally identifiable information. Tokenisation can be done on-premises or in the cloud, depending on the specific use case and security requirements.