What was the cvv response? You can check it either thru the detail transation api or the merchant account website. Or are you sure you are passing the CVV code?
The credit card issuer might or might not rejected a transaction from a fail cvv #. But if you want to reject it always, you can set it in the merchant account
Account Settings - Security Settings - Card Code Verification
And yes, if it approved, it will charge/hold the amount on your card.
