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Earlier quoted context omitted.
While we're on the subject, how do Amazon get a pass for not making the user re-enter the CVV for every transaction?
AFAIK the CVV is not required to perform a transaction. It's just that you take the hit in case a fraud occurs when you don't check the CVV.
"Let's talk about that CVV for a moment. ... PCI DSS is very clear about how the CVV (or CVV2 as it is these days) should be stored ... It shouldn't be stored and that's what makes this breach such a big issue. Violation of PCI DSS guidelines can lead to pretty serious fines and even loss of merchant facilities; the card providers take this very seriously. It checked out - this is the CVV."
While we're on the subject, how do Amazon get a pass for not making the user re-enter the CVV for every transaction?
The author doesn't explicitly mention it, but the CVVs were saved as a part of debug logging. That mistake should serve as a warning to others implementing PCI DSS systems.