Validation Code

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Definition of 'Validation Code'

A validation code is a unique alphanumeric code that is used to verify the authenticity of a document or transaction. It is typically used to prevent fraud and protect against unauthorized access.

Validation codes are often used in the financial industry to protect against credit card fraud. When a customer makes a purchase with a credit card, the merchant will typically ask for the customer's card number, expiration date, and security code. The security code is a three-digit number that is printed on the back of the card. The merchant will then use this information to verify the authenticity of the card.

Validation codes can also be used to protect against unauthorized access to online accounts. When a user logs in to their online banking account, they may be asked to enter a validation code that is sent to their mobile phone. This code helps to ensure that the user is who they say they are and that they are not trying to access the account from a unauthorized device.

Validation codes are an important security measure that can help to protect against fraud and unauthorized access. They are typically easy to use and can help to keep your financial information safe.

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