What is a Dynamic CVV/CVC and Why Is It Important?

For decades, three little numbers printed on your credit or debit card were all that stood in the way between your money and the fraudster who wants your money. Maybe you’ve memorized yours, or have it stored on your web browser, but in 2025 those three digits do not provide the security that you need in a world full of digital thieves. That’s right, the static CVV or CVC is quickly becoming obsolete and is providing a false sense of security to each and every card holder.

As online transactions continue to rise, criminals find ever more ingenious ways to exploit vulnerabilities in card-not-present (CNP) environments. But the traditional CVV/CVC, often known as the card’s security or verification code, are no longer up to the task to protect the consumer. Instead, dynamic CVV/CVC technology offers new possibilities for protecting sensitive data and preventing unauthorized use.

Let’s talk about why security codes that change enable a safer way to shop in 2025.

From Static to Dynamic: What’s the Difference?

Before diving into the advantages of a dynamic CVV, it’s important to understand the distinction between static and dynamic versions of this three- or four-digit number. A CVV (Card Verification Value) or CVC (Card Verification Code) is the numerical code found typically on the back of a credit or debit card (some networks place it on the front). When a consumer makes a purchase online, they usually enter the card number, expiration date, and this code. The CVV/CVC is intended as a proof that the purchaser is in physical possession of the card, thus helping guard against unauthorized or automated misuse of card details.

A static CVV/CVC is the traditional, fixed code that never changes over the lifetime of the card. After all, it’s literally printed on the card itself. While it provides a basic layer of protection against some forms of misuse, the static nature of the code means that once compromised, the information can be reused indefinitely.

In contrast, a dynamic CVV/CVC is a code that changes, either on a regular time interval or upon each physical (aka card-present) transaction, depending on the solution. This shifting code significantly reduces the time window during which a stolen code can be utilized. Even if attackers manage to steal dynamic CVV/CVC data, it becomes useless as soon as the code refreshes to a new value.

In practice, a dynamic CVV often appears on a small e-paper display screen on the card itself while some dynamic security code solutions rely on digital wallets or secure apps to present the cardholder with a one-time or regularly changing code. The underlying goal is simple: to make it exponentially harder for fraudsters to replicate or reuse stolen card credentials in card-not-present scenarios, typically during ecommerce transactions.

Why Traditional CVVs Fail in the Ecommerce Era

Remember, the CVV/CVC was invented to make sure the person using the payment card actually had the card itself in their possession… for orders over the phone. With ecommerce transactions booming over the last twenty years or so, the speed of fraud has increased in lockstep with the speed of the internet and online shopping. Let’s break down why traditional security codes just can’t keep up.

Static Data Breaches

A static code can be viewed as a piece of semi-permanent data. Once it is compromised through a data breach, phishing scheme, or other means, criminals can use that information repeatedly for unauthorized online purchases. In an age of massive data breaches and “carding” forums on the Dark Web, it’s astonishingly easy for hackers to gain access to a huge trove of cardholder data. If the CVV/CVC is static, that piece of data effectively remains valid until the card’s expiration date, or until the issuer notices suspicious transactions and blocks the card.

Card-Not-Present Fraud Rising

While EMV chip cards helped curtail fraud in face-to-face (card-present) transactions, e-commerce (card-not-present) fraud has continued to climb. Cybercriminals don’t need a physical card to abuse stolen information; they just need the card number, expiration date, and the static CVV/CVC to make illicit online purchases. This scenario is made easier by the fact that many consumers use their cards so frequently online that they develop “card-on-file” habits with multiple retailers, increasing the number of potential breach points.

Weak Link in a Stronger Chain

As payment technology evolved—moving from magnetic stripes to EMV chips for in-person transactions—the old system of static CVV/CVCs lingered as a leftover security gap for online transactions. Essentially, if criminals cannot as easily clone a chip-enabled card, they simply shift their focus to e-commerce channels, where static codes still rule. This is why the static CVV/CVC is often the weakest link in an otherwise more robust security chain.

Luckily, the industry has developed and deployed dynamic security code technology that’s about to provide a much stronger level of security at the card level. Let’s dive into what dCVV/dCVCs can offer.

How Dynamic Security Code Technology Helps Prevent Ecommerce Fraud

Frequent Code Changes

The core reason dynamic CVV/CVCs enhance security is that they dramatically shrink the window of opportunity for fraud. Even if criminals manage to steal a consumer’s card number and the associated dynamic security code, the code they have quickly becomes invalid. If the dynamic CVV/CVC refreshes multiple times a day or even during a single hour, the thieves only have a limited timeframe to attempt fraudulent purchases—often not enough time to act before the code changes.

Mitigating The Value of Stolen Card Data

Because dynamic CVV/CVCs are ephemeral, large-scale data breaches become much less fruitful for fraudsters. If a breach obtains card details including your three digit security code, that CVV/CVC is only valid until the next refresh. This minimal validity period diminishes the attractiveness of card data on the black market. Criminals rely on the ability to use stolen details repeatedly, and they will actively avoid purchasing card information on the black market that includes a dCVV/dCVC. These card data are less valuable for fraudsters, and thus more valuable for banks and cardholders.

Additional Verification Layer

Dynamic code technology also makes it more difficult to automate or guess codes. A static code can theoretically be brute-forced on certain e-commerce platforms if there are insufficient security checks. But a frequently rotating dynamic CVV/CVC adds a layer of complexity that script-based attacks can’t easily overcome. Each refresh effectively forces any would-be fraudster to acquire the new code, which is far more difficult than simply reusing a static set of compromised credentials. Instead of having multiple guesses to find one number out of a thousand, thieves would effectively have only one shot at guessing the right code before it changes.

The ROI of Dynamic CVV for Issuers

Adopting a new technology like dynamic CVV/CVC requires some investment and planning from card issuers (though typically fairly minor). They must consider hardware changes to the card, integration of back-end systems, and potential training or user education. However, these costs can be offset by notable advantages that ultimately show high ROI:

Reduced Fraud-Related Losses

Fraud drains the bottom line for financial institutions. By preventing fraudulent transactions from the outset, issuers see a direct decrease in chargebacks, refunds, and operational costs tied to investigating disputes. Over time, these cost savings can be substantial considering every dollar lost to fraud equates to over four dollars in fraud-related expenses.

Boost in Customer Trust and Retention

Security breaches erode consumer confidence in their financial institution. Offering dynamic CVV/CVC technology sends a strong signal that the issuer is committed to protecting customers’ money and personal information. High-value customers may be more likely to remain loyal if they believe their bank or issuer is proactively using cutting-edge security measures.

Differentiation in a Competitive Market

As financial products become increasingly commoditized, issuers search for unique selling points to attract and retain cardholders. A physical card with a dynamic code on a changing e-paper display becomes a clear differentiator, showcasing the issuer’s focus on innovation and safety. This competitive edge can drive growth and acquisition.

Regulatory Compliance and Future-Proofing

Payment regulators and card networks constantly raise the bar for security standards. Dynamic CVV/CVC technology may help issuers meet or exceed emerging requirements for transaction authentication. Staying ahead of the curve can mitigate future compliance costs, while also preparing issuers for the next wave of digital payment capabilities.

Taken together, these benefits often translate to a healthy ROI. While it may not be immediate, many card issuers find that reduced fraud, improved customer perception, and new growth opportunities create value that more than justifies the initial investment in dynamic CVV/CVC.

Why EVC by Ellipse Is the Best Way to Bring Dynamic CVV/CVC to Today’s Cards

EVC by Ellipse is quickly becoming the industry standard when bringing dynamic CVV/CVCs to both credit and debit cards around the world. Below are key reasons issuers, partners, and consumers are taking note:

A Proven Technology Platform

Ellipse has leveraged a deep history of payments expertise to develop its EVC (Ellipse Verification Code) solution. The company recognized early on that many existing approaches to dynamic codes faced hurdles like battery life, reliability of displays, manufacturing complexity, and user adoption. EVC is designed to overcome these limitations. By using advanced, power-harvesting technology, EVC ensures the e-paper display on the card remains operational throughout the card’s lifespan without the cardholder needing to charge it or replace a battery. In fact, there is no battery at all.

Seamless Cardholder Experience

Any new security feature must be convenient enough for consumers to embrace. EVC focuses on UX simplicity: the cardholder doesn’t need any other technological device to view the updated code, nor do they need additional steps to use their card online. The dynamic CVV/CVC appears directly on the card’s e-paper or micro-display, refreshed with every card-present transaction. Cardholders continue to shop as usual, only with the added benefit that the code they see on their card is constantly being updated. This reduces confusion, as no separate device or complicated authentication step is required each time they make a purchase.

Compatibility with Existing Payment Infrastructure

One of the biggest challenges in implementing new card security measures is ensuring compatibility with existing payment infrastructure, from payment terminals to e-commerce gateways. EVC is designed to work within the industry’s standard frameworks leveraging the standard EMV rails that all modern payment cards use. Merchants don’t need to replace or upgrade all their terminals to accommodate EVC. Instead, the solution slots into the established environment, significantly reducing adoption friction.

Minimal Impact on Card Manufacturing Processes

Card issuers and card manufacturers need a solution that’s cost-effective and straightforward to produce at scale. EVC can be integrated into the standard payment card form factor without major overhauls to the supply chain. From an issuer’s standpoint, this means a more controlled cost structure when rolling out dynamic CVV/CVC cards to millions of customers. In parallel, the advanced technology ensures reliability, so neither the display nor the changing code mechanism is a weak point in the card’s design.

Future-Ready Security

As fraudsters evolve their methods, the financial industry must stay one step ahead. EVC offers an additional line of defense that is harder to circumvent than static data points. For issuers looking to future-proof their portfolio, adopting EVC effectively helps keep pace with escalating fraud threats. Moreover, as online shopping channels diversify, covering everything from in-browser checkouts to in-app purchases, having a dynamic CVV/CVC on every physical card ensures that stolen data from one channel doesn’t compromise an entire portfolio of card accounts.

The payment industry is undergoing a transformation as issuers and networks strive to balance convenience with security. Traditional static CVV/CVCs, which once seemed adequate, are now recognized as a weak link in the fight against card-not-present fraud. The shift to dynamic CVV/CVC technology promises a higher level of protection by continuously rotating the code and shrinking the window for fraudulent use.

Dynamic security codes stand out as a strategic investment in fraud prevention, brand trust, and customer convenience. By adopting EVC by Ellipse, issuers can take a proactive stance: leading the charge into a new era of secure, customer-centric payment solutions where trust is paramount and innovations in card technology directly improve the safety of every digital transaction.