Also called: CVM, Cardholder Verification Methods (CVM)
What a Cardholder Verification Method is
A Cardholder Verification Method (CVM) checks whether the person presenting a payment card is authorized to use it. A CVM is a verification step during a transaction. It is separate from authorization, which is the issuer’s decision to approve or decline the payment.
Common CVMs include PIN, signature and Consumer Device CVM (CDCVM), such as a fingerprint or face scan verified on a customer’s phone. “No CVM” means the transaction proceeds without a verification step. It does not mean the payment was not authorized.
CVM changes how a customer verifies a payment, not the merchant fee shown on its own.
How the method is selected
For an EMV chip transaction, the card’s CVM list sets the priority of verification methods. The terminal applies a method supported by the card and device for that transaction. With an online PIN, the terminal encrypts the PIN and sends it to the issuer. With Offline Enciphered PIN, the terminal encrypts the PIN for the chip, which checks it against the reference PIN stored on the card.
For contactless payments below Mastercard’s Contactless CVM Limit, no CVM is required. The limit varies by country, and the research does not give a specific US amount. A phone can verify its user through CDCVM before or during a tap. That device check is distinct from 3-D Secure, which can authenticate an online transaction.
What it means for your business
The CVM affects what your customer does at checkout and what your terminal must support. A chip terminal must support signature, but Visa’s device guide says you are not required to capture and verify a signature for a chip transaction. For PIN entry, use a PIN entry device that meets applicable PCI security requirements. The terminal must not retain PIN-related data after the authorization response.
PIN bypass is a specific terminal outcome, not another name for a PIN. In eligible chip environments, a customer can cancel PIN entry; the terminal records that PIN was required and the PIN pad was working, but no PIN was entered. US Common Debit rules require a customer prompted for a PIN to have a way to transact without entering one. Contact chip and contactless transactions do not use the same bypass indicator.
What it means for your costs
CVM choice does not create a separate merchant fee in the research. Mastercard states that contactless technology does not change pricing; the underlying payment product determines pricing. No CVM-specific statement line or fee amount is identified, so a “No CVM” or PIN entry should not be treated as proof of a surcharge or processing markup.
CVM still matters for payment handling. Mastercard says a merchant is liable for contactless transactions above the CVM limit that have no cardholder verification. Below the limit, no CVM is required. Applying the correct terminal settings helps you follow the applicable rules without adding an unnecessary checkout step.
What you can actually change
- Review terminal settings. Confirm your terminal supports the CVMs your customers use, including PIN and contactless device verification. Check that contactless CVM limits and transaction indicators are configured for the markets where you operate.
- Protect PIN entry. Use a PCI-compliant PIN entry device and keep PIN entry private. Confirm the terminal does not retain PIN-related data after authorization.
- Separate fees from verification. If a statement shows a charge you do not recognize, compare its exact line description and calculation with your processing agreement. The research identifies no standard CVM-specific fee.
Frequently asked questions
What does No CVM mean on a card transaction?
No CVM means the transaction proceeds without a cardholder verification step such as PIN or signature. It does not mean the payment skipped issuer authorization. For Mastercard contactless payments below the applicable CVM limit, no verification is required.
Is PIN bypass the same as No CVM?
No. PIN bypass describes a customer canceling PIN entry in an eligible chip environment. The terminal records that PIN was required and the PIN pad was working, but no PIN was entered. No CVM means the transaction proceeded without a verification method.
Does a CVM change my processing fees?
The research identifies no separate CVM-related merchant fee. Mastercard states that contactless technology does not affect pricing; pricing depends on the underlying payment product. A CVM label alone does not explain a charge on your statement.
Does every chip transaction require a signature?
No. Visa’s device guide says an attended chip terminal must support signature, but merchants are not required to capture and verify a signature for a chip transaction. The card and terminal determine the applicable verification method.