Address Verification Service (AVS) is a security tool used by payment processors to compare the billing address provided during a transaction with the address on file at the card-issuing bank, helping prevent fraudulent transactions.
Key Components
- Address matching
- Response codes
- Risk assessment
- Transaction validation
- Fraud prevention
Verification Process
- Data collection
- Address comparison
- Code generation
- Risk evaluation
- Decision making
Response Types
- Full match
- Partial match
- No match
- System error
- International variation
Implementation Areas
- E-commerce
- Card-not-present
- Digital services
- Subscription billing
- Online payments
Security Benefits
- Fraud reduction
- Risk management
- Customer verification
- Transaction safety
- Chargeback prevention
Best Practices
- Code interpretation
- Response handling
- Error management
- Policy setting
- Staff training
AVS helps reduce fraudulent transactions in card-not-present environments.