What is AVS?
AVS stands for Address Verification System. It is a security feature used in card transactions to verify that the billing address provided by the cardholder matches the address on file with the card issuer. This system helps to prevent fraud by ensuring that the person making the transaction is the legitimate owner of the credit card. Here's how AVS works:
Customer Provides Address: The customer provides their billing address along with their card information.
Address Verification: The merchant sends the billing address information along with the transaction request to the payment processor.
Comparison with Issuer's Records: The payment processor forwards the address information to the card issuer, which compares it with the address on file.
Response Code: The card issuer returns an AVS response code to the merchant indicating the level of match.
Merchant Decision: Based on the AVS response, the merchant decides whether to approve or decline the transaction. A full match provides more confidence in the legitimacy of the transaction, while a partial match or no match may require further investigation. AVS is commonly used for online and phone transactions where the physical card is not present, adding an extra layer of security to help reduce fraudulent activities.
Related article: What to do if transactions decline due to AVS failure?
Customer Provides Address: The customer provides their billing address along with their card information.
Address Verification: The merchant sends the billing address information along with the transaction request to the payment processor.
Comparison with Issuer's Records: The payment processor forwards the address information to the card issuer, which compares it with the address on file.
Response Code: The card issuer returns an AVS response code to the merchant indicating the level of match.
Merchant Decision: Based on the AVS response, the merchant decides whether to approve or decline the transaction. A full match provides more confidence in the legitimacy of the transaction, while a partial match or no match may require further investigation. AVS is commonly used for online and phone transactions where the physical card is not present, adding an extra layer of security to help reduce fraudulent activities.
Related article: What to do if transactions decline due to AVS failure?
Updated on: 21/08/2024
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