Why is it best practice for merchants to enable CVC/CVV recollection during card migration?

Enabling CVC/CVV recollection during card migration is primarily recommended to prevent declined transactions on migrated cards. When a merchant migrates customer card information to a new payment processor or platform, the CVC/CVV is a crucial piece of information that helps verify the identity of the cardholder during the transaction process.

These codes are not stored by most merchants due to PCI compliance regulations, but recalling them at the time of migration ensures that the merchant can perform transaction authentications more effectively. Many card issuers require the CVC/CVV for approval; without this information, previously stored cards may face higher rates of decline, leading to a poor customer experience and potential loss of revenue for the merchant. Thus, collecting this information not only aids in transaction success but also helps maintain a seamless transition for customers when their payment methods are updated.

While enhancing customer trust, ensuring safe storage of card information, and reducing transaction fees are all important considerations in a merchant's payment strategy, they are not the primary reasons for enabling CVC/CVV recollection during card migration. The main focus during migration is to maintain transaction authorization rates, which directly correlates to CVC/CVV involvement.