What's the difference between credit card payments made with a CVN or without a CVN?

Credit card payments made with a 3 or 4-digit Card Verification Number (CVN) code that's on the front or back of the card improves transaction security and prevents fraud.

When the cardholder isn't present in person, merchants often ask for the code so they can secure transactions occurring online, by mail, fax, or over the phone. The code results in an electronic authorization request to verify the authenticity of the card. The merchant receives a reply message that confirms whether the card and the code match. Merchants who send the CVN with their credit card authorizations might also accumulate lower transaction costs than those who don't.

Note:

CVN capture during transaction authorization is currently not allowed. However, you may provide CVN during credit card token creation.

Credit card payments made online, by mail, fax, or over the phone without a CVN requested by the merchant, present a greater risk to the merchant because the card isn't verified as authentic by the reply message to the electronic authorization request. Also, in some territories and countries, credit card authorization is rejected without the CVN code.