What is a debit card security code and how does it work?

Your debit card security code offers another line of defence against unauthorised access to your banking account.

Your debit card provides a direct link to your banking account, which means your savings could be completely wiped out if it ends up in the wrong hands. To minimise that risk, especially with online or over-the-phone purchases, most debit cards come equipped with a special security code that ensures the person providing the debit card details in a transaction has it in their possession.

ING Orange Everyday Account

ING Orange Everyday Account

ING Orange Everyday Account

$75 cash bonus. $0 monthly account fees. Receive a $75 cash bonus if you open a new Orange Everyday account, enter the promotional code and deposit at least $1,000 within a calendar month and make 5+ card purchases (T&Cs apply). Get a competitive ongoing variable rate when linked with an ING Savings Maximiser.

  • Account keeping fee: $0.00
  • Linked debit card: Visa
  • ATM withdrawal fee: $0.00
  • Overseas EFTPOS fee: 2.5%
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Rates last updated September 20th, 2018
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
ING Orange Everyday Account
$75 cash bonus.
$0 monthly account fees.
Receive a $75 cash bonus if you open a new Orange Everyday account, enter the promotional code and deposit at least $1,000 within a calendar month and make 5+ card purchases (T&Cs apply). Get a competitive ongoing variable rate when linked with an ING Savings Maximiser.
NAB Classic Banking
$0 monthly account fees and $0 overdrawn fees.
Temporarily block and unblock your card at the touch of a button in the NAB app if you lose it. Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone.
NAB Classic Banking with Platinum Visa Debit Card
$10 cashback on contactless purchases, $0 foreign transaction fee and complimentary travel insurance.
$10 monthly account fee.
Receive $10 cashback when you spend $1000 on contactless purchases. Complimentary travel insurance, transport accident insurance, purchase protection insurance and more when you meet eligibility criteria.
HSBC Everyday Global Account
No foreign ATM or transaction fees.
$0 monthly account fee.
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.
MyState Everyday Account
A flexible option for day-to-day spending.
$6 waivable monthly account fee.
Monthly account fee waived if you deposit at least $2,000 a month or are 23 years or under. Apple Pay, Google Pay, Samsung Pay available.

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What is a debit card security code?

Most banks now provide account holders with a debit card that contains a special three-digit or four-digit numeric code embedded on it, similar to the codes on a credit card. This numeric code is separate to the debit card number and verifies the cardholder. This is especially important for when you are making online or over-the-phone purchases, where you cannot provide a signature as proof of your authorisation to use the card.

Case study: How does security code work?

online-shoppingAmanda is shopping for a pair of sneakers for her son and finds the pair of Nikes he wants on sale at an online sporting goods store. Since there are no retailers close to her house and the retailer is able to deliver within seven days, she decides to make the purchase online using her debit card.

She proceeds to checkout where she is prompted to enter her personal information followed by her debit card number and expiration date. The last field asks for the security code, which she finds on the back of her card in small print. Once entered, the transaction is processed and the new pair of tennis shoes is on their way to Amanda’s house.

Where is the code located?

The debit card security code can be found on the back of the card in the bottom-right corner of the signature panel. Instead of being embossed like your card number, it’s printed in small black letters. This security code is typically three or four numbers long and completely different from the series of numbers embossed on the front.

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What are the security benefits?

It is a requirement by the issuer of debit cards with security codes and the Payment Card Industry Data Security Standard that the code not be stored in any database once the transaction has been authorised. This measure ensures that the card numbers will not be useful if the merchant’s payment records are hacked. The security code is not included in the information that can be found on the magnetic strip, therefore making it virtually impossible for an individual who has obtained the card number and expiration date to use that information to conduct a transaction online or over the phone.

Are there any limitations?

Although merchants are not permitted to store the debit card security code, they are not required to ask for it when making a transaction. This could allow for fraudulent activity from individuals who have obtained only the information found on the front of the debit card. Phishing scams, where you are tricked into giving out your debit card information on a false website, steal that information and then could use it with those merchants who do not ask for the security code at checkout.

The other drawback with the debit card security code is that it limits you when setting up periodic payments as that code is not stored along with your card number. However, since you’re setting up payments to be directly drawn from your linked bank account, you should be able to provide the account number rather than the debit card information so that direct debits can be made on an ongoing basis.

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Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

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