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This is a load of shit. I have seen many many password sites that carry not only the card holders full details, but also the cvv2.
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look at an ibill sign up form. they ask for cvv2. but they got this little text also:
The Card ID is used to verify that you have possession of the credit card you are attempting to use. If there is not a Card ID number on the back of your card then please leave the field blank.
my card has a cvv2. when i tested it on a site, i didn't put in a cvv2. my signup went thru no problem. now i gotta try it with a wrong cvv2 and see what happens.