Address Verification System (AVS) Overview

"What is AVS and how can it help me?"

Here's how Address Verification System, more commonly known as AVS, works.

Address verification, an optional merchant service offered by Visa, Discover (JCB (US Domestic only), and Diners), MasterCard, and American Express, is designed to reduce the fraudulent use of card numbers for Mail Order/Telephone Orders (MOTO) and eCommerce industry types, where a card is not present  (CNP) and merchandise is to be shipped/mailed. The information provided by this service is intended to help merchants make more informed decisions about transactions and thereby reduce the number of fraudulent transactions, charge-backs, and cardholder/merchant disputes. It should be noted that Address Verification Service is supported for domestic U.S. cardholder addresses only.

When Card Not Present customers charge their purchases to a credit card, merchants have no opportunity to compare signatures or confirm possession of the card. Thieves who use victim's credit card numbers to place fraudulent orders typically think that the account number is the only item checked during the authorization procedure. In most instances, they don't have access to the cardholder's accurate billing address when they place the order.

While an authorization indicates to the merchant that an account is valid and in good standing, AVS provides a means to quickly check that the person placing the order is probably the same person responsible for payment on the account. If AVS indicates that the billing address provided with the order doesn't match the address on file with the card issuer, the merchant may have reason to suspect a fraudulent transaction and therefore choose to delay fulfillment until the customer's identity is confirmed. Merchants should use AVS in conjunction with their other efforts to verify a customer's identity. A "match" response from AVS alone cannot provide an unconditional guarantee.

See how to set up AVS Filters in Payeezy Gateway to help manage fraudulent transactions.

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