Client Success Story: How Dynamic CVV2 Helped Reduce CNP Fraud by over 90%!

Community Manager

A newly published case study focuses on Fidelity Bank (Bahamas) Limited, an LAC-based client whose implementation of Dynamic CVV2 (dCVV2) was highly successful in reducing occurrences of card-not-present (CNP) transactions.


 On standard payment cards, the CVV2 is a 3-digit value printed on the back. If the value is compromised, it can be used and reused for fraudulent transactions. With Dynamic CVV2, this value changes regularly. During online purchases, the cardholder enters the current dynamic CVV2 value, and the VisaNet system validates the code using its dCVV2 Authenticate capability. The dCVV2 technology can both help prevent reuse of a compromised card and reduce fraud-related costs, such as card reissuance, distribution, and fraud investigations.


Data collected since May 2021 from all of Visa’s dCVV2 clients looking at monthly fraud rates for static and dynamic CVV2 values have shown the strong impact that this new technology can have. Dynamic CVV2 fraud rates did not exceed 0.01%, while static CVV2 fraud rates reached a peak of 0.20% in December 2021 and sat at 0.19% for the seven months prior.


Fidelity Bank (Bahamas) (also referred to as “Fidelity” herein) was experiencing CNP fraud rates far above industry averages, and with in-house solutions remaining costly, Fidelity needed to explore its options. Through the Visa Partner program, Fidelity worked with Keyno to implement Visa’s dCVV2 API in March of 2021. The partnership accelerated the approval process, allowing Fidelity to migrate all cardholders to dCVV2 by that August.


The results of this partnership quickly proved to be successful. Fidelity reports that its CNP fraud rate decreased by 70.8% for debit and by 91.3% for credit cards when comparing the January through July period for 2020 and 2021. Before the implementation of dCVV2, Fidelity was averaging 1,000 reissued cards for fraud annually. In 2022, there have only been five at time of publishing of the case study. In addition, Fidelity expects to see a 90% reduction in fraud-related expenses. Heatherdawn Blake-Brown—the Director of Card Services at Fidelity—expressed the company’s satisfaction with their experience. “We are extremely happy,” she said. “The reduction in CNP fraud within months of implementation was incredible.”


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