<P> There are several types of security codes: </P> <Ul> <Li> The first code, called CVC1 or CVV1, is encoded on track two of the magnetic stripe of the card and used for card present transactions . The purpose of the code is to verify that a payment card is actually in the hand of the merchant . This code is automatically retrieved when the magnetic stripe of a card is swiped on a point - of - sale (card present) device and is verified by the issuer . A limitation is that if the entire card has been duplicated and the magnetic stripe copied, then the code is still valid . (See credit card fraud § skimming .) </Li> <Li> The second code, and the most cited, is CVV2 or CVC2 . This code is often sought by merchants for card not present transactions occurring by mail, fax, telephone or Internet . In some countries in Western Europe, card issuers require a merchant to obtain the code when the cardholder is not present in person . </Li> <Li> Contactless cards and chip cards may supply their own electronically generated codes, such as iCVV or a dynamic CVV . </Li> </Ul> <Li> The first code, called CVC1 or CVV1, is encoded on track two of the magnetic stripe of the card and used for card present transactions . The purpose of the code is to verify that a payment card is actually in the hand of the merchant . This code is automatically retrieved when the magnetic stripe of a card is swiped on a point - of - sale (card present) device and is verified by the issuer . A limitation is that if the entire card has been duplicated and the magnetic stripe copied, then the code is still valid . (See credit card fraud § skimming .) </Li> <Li> The second code, and the most cited, is CVV2 or CVC2 . This code is often sought by merchants for card not present transactions occurring by mail, fax, telephone or Internet . In some countries in Western Europe, card issuers require a merchant to obtain the code when the cardholder is not present in person . </Li>

Where is the security code on an atm card