For card-present transactions, the CVV has previously been optional, but recommended. Apparently, some merchants have started following the recommendation, while others have not.
Unlike the expiration date, the CVV is a piece of information independent of what’s on the mag stripe. As such, it’s like the billing address. Both pieces of information are helpful in ensuring that the person attempting the charge is the card holder and not a fraudster who bought intercepted swipes on the black market.
I remember the days when we had to sit at night and call into the card companies and get authorizations that way.
And we had to bundle the hard copies and mail them in!
Ah, the good old days!
We don’t bother with the CVV at my restaurants or liquor store. Small enough town we pretty much know our customers.