The Card Security Code is a new authentication scheme designed by credit card companies to further efforts towards reducing fraud for Internet or card-not-present transactions. This program helps verify that a genuine card is being used for the transaction because the digits do not appear on credit card statements and receipts.
How to find your card's Security Code:

Visa, MasterCard and Discover, 3 digits on back of card

American Express, 4 digits on front of card