The CVC is generated by encrypting the credit card number and expiry date with an encryption key known only to the issuing bank. This number is not stored on a credit card's magnetic stripe, so it cannot be collected during normal offline purchases, and will not appear on any sales receipts or billing statements. As such, the only way to obtain the CVC number is to have the card in one's possession. After entering the CVC during an online transaction, the number is sent to the issuing bank to verify that the card number and CVC match. This validates that the credit card user had the actual physical credit card in hand when they placed the order.