Address Verification Service (AVS) – Steps In Address Verification Service

What is the Address Verification Service (AVS)?

Address verification service, otherwise known as AVS, is a security designed to checkmate transactions on any debit or credit card.

AVS like the name implies depends on the verification of the address of the cardholder. This is for online transactions because the chances of being fraudulent are reduced as a card that is protected by AVS will confirm the address of the cardholder.

Address Verification Service

How Does Address Verification Service Work?

AVS is usually carried out by banks during the time of the card issuing. AVS can be done via the telephone when the cardholder is not present. The billing address on the card added with the address on the bank’s files and if the address tallies, the transaction is done. However, it is possible that even after the billing address was correct, the transaction is still declined. A number of reasons can be responsible for this. It might be that there’s a misspelling of the address, and some other reasons may also cause a decline.

Steps Involved in Address Verification Service

The following happens when a customer enters their address during checkout and clicks on the submit button:

  • Firstly, Your payment gateway transmits the address data to the customer’s credit card brand (Visa, Mastercard, Discover, or American Express).
  • Secondly, The credit card brand then sends these details to the issuer, who compares the address with the address stored on the file.
  • Then the issuer sends the status and linked AVS response code to your payment gateway.

What is Compared During the Address Verification?

When your customer gives their address. Only the numeric part of the address is verified by the issuer. Only the house number and ZIP/Postal code are compared. What this implies is that there may be some confusion. When a customer keys in an address for a suite.

Once the issuer can’t get an exact address match. It returns an AVS code which indicates how the address verification failed.

What You Should Know About AVS

In as much as AVS checkmates transfers on a debit card or credit card. It is not a sure fraud solution. Thus you don’t have to rely only on AVS to prevent fraud. It is best if you have a payment gateway that uses AVS. In conjunction with other fraud detection mechanisms. Like CVV, IP address verification, 3D Secure, and device authentication.

If your business involves selling globally. You must ensure that your payment gateway is configured to manage and accept international AVS capabilities. It is advised that you do not ignore. This key aspect of your fraud prevention strategy.

Availability of Service

The AVS service is very popular in the UK, Canada, USA. However, this service is not yet available in other countries of the world. The AVS service is supported by all major card services like Master Card, Visa and American Express, etc.

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