Since the CVV2 may not be stored by the merchant for any length of time[2] (after the original transaction in which the CVV2 was quoted and then authorized and completed), a merchant who needs to regularly bill a card for a regular subscription would not be able to provide the code after the initial transaction.
you can also process transactions without a cvv. credit card companies just charge you (the vendor) more for these transactions, just like those without verified addresses and cards entered by hand versus those swiped through a reader.
But yes, you are not supposed to store the CVV2. Via http://en.wikipedia.org/wiki/Card_Security_Code#CVV2_limitat...:
Since the CVV2 may not be stored by the merchant for any length of time[2] (after the original transaction in which the CVV2 was quoted and then authorized and completed), a merchant who needs to regularly bill a card for a regular subscription would not be able to provide the code after the initial transaction.