PVV (Pin Verification Value)

PVV, or PIN Verification Value, is a security feature used in the context of payment card transactions to verify the correctness of the cardholder's Personal Identification Number (PIN). It is a discretionary value that is encoded onto the magnetic stripe of a payment card. This encoded value is used during the transaction process to ensure that the PIN entered by the cardholder matches the PIN expected by the card's issuing bank.

The process works as follows:

The use of PVV is crucial for the security of PIN-based transactions, particularly because it helps prevent unauthorized access to financial accounts even if the card is lost or stolen. The PIN verification process ensures that only someone who knows the correct PIN can successfully complete a transaction, adding a layer of security against fraud. PVV is one of several methods used by financial institutions to secure electronic transactions and protect cardholder data.