Yes, in some cases, retailers might need your CVV for a credit card charge refund. Depending on the method used to issue the refund, it is possible that you might be asked for a CVV, PIN, expiration date and so on.
The CVV code is required as proof of card ownership when making an online or over the phone purchase. The same proof might be required when issuing a refund.
Key Things to Know About Providing Retailers Your CVV Number
If a retailer asks for your CVV number in order to issue a refund, make sure that it is the same retailer that you made the purchase from. If they're not a reputable retailer, or you're not sure about their identity, then it would be best not to provide your CVV number.
If you still have doubts, you can always call the credit card issuer and ask for advice. They might also be able to provide you with a chargeback for your purchase.
You don't have to worry too much about credit card fraud as long as you catch it. All major issuers have $0 fraud liability guarantees, meaning they won't require you to pay for fraudulent transactions.