“The 3 or 4 digit security code you entered is not valid;” and yet the shopper is not able to enter their code because you have this option disabled for your store.

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Short Answer:

This is caused by occasional credit cards where the issuing bank of the credit card holder has required that specific customer’s credit card to use the 3 or 4 digit security code (CVV2). 

Detailed Explanation:

There are two ways to resolve this.  First, you can enable that option in your store (Settings > checkout Settings)—you can even choose to make it optional.  The second method is for you to directly work with that customer having the problem, and ask them to contact their bank to remove that barrier.