Using the Address Verification Service (AVS)
The Address Verification Service (AVS) is a risk management tool that enables merchants accepting card payments in a non-face-to-face environment (e.g. e-commerce, mail order and telephone order [MO / TO]) to verify the validity of the billing address provided by their customers by comparing it to the one on file with the card issuer. Using AVS helps card-not-present merchants minimize fraud and fraud-related chargebacks.
AVS requests are processed in real time or in batches and may be used with or without a transaction authorization request. Typically, the response is received within just a few seconds.
- AVS with an authorization request. You can process AVS requests just as you process transaction authorizations, either in real time or in a batch using a terminal or a computer. Real-time authorization requests are used typically for e-commerce transactions where the customer waits for a response online. Batch authorizations are used for transactions where there is no immediate need for a response. The process of transaction authorization and address verification goes through the following stages:
- A customer places an order in a card-not-present environment.
- The merchant confirms the order information, including the merchandise description, price, card account number, card expiration date and shipping address.
- The merchant requests that the customer provides his or her billing address (the billing address is where the cardholder receives his or her card statements).
- The merchant enters the provided billing address information into its authorization request, along with the rest of the transaction information. Both requests are sent to the merchant’s processing bank that sends them on to Visa or MasterCard.
- The Credit Card Network (Visa or MasterCard) then sends the request on to the card issuer who makes separate decisions on each request. The card issuer compares the provided billing address to the one it has on file for its cardholder. It then returns both the authorization and the address verification responses through the same channel. The address verification response consists of a single-digit code which the merchant’s payment processing company may change to make it easier to understand.
- AVS without an authorization request. In some cases merchants can send an address verification request without a transaction authorization request. Such requests may be made when:
- Merchants want to verify a customer’s billing address before a transaction authorization is requested.
- An earlier transaction authorization request has received an approval but an AVS request has received a “Try again later” response.
- AVS response codes. Listed in the table below are the possible AVS response codes returned by the card issuer.
AVS Response Code
Explanation
U.S.
International X – Match (MasterCard only)
D, M
Address and nine-digit ZIP code match – if the other fraud services raise no suspicions, you should process the transaction. Y – Match
Address and five-digit ZIP code match – follow instructions above. A – Partial Match
B
Address matches but ZIP code does not – a sign of a potential fraud. You may want to investigate further before making a decision.
Z – Partial Match
P
ZIP code matches but address does not – a sign of a potential fraud; follow instructions above.
N – No Match
N
Neither address nor ZIP code match – a strong sign of a fraud. You should take additional steps to investigate the transaction.
U – Unavailable
G, I
The card issuer system is unavailable and the address cannot be verified. You need to make a decision whether to process the transaction without AVS or not.
R – Retry
R
The card issuer system is unavailable – you should try again later. S – No AVS Support
U
If the card issuer does not support AVS you will have to make a decision whether to process the transaction or not based on other criteria.
C – Non-Compatible
Street address and postal code not verified due to incompatible formats. (Acquirer sent both street address and postal code.)
- Using AVS response codes. When developing your procedures for handling AVS response codes, consider the following guidelines:
- Exact Match – X, Y, D, M. Generally speaking, you will want to proceed with transactions for which you have received an authorization approval and an “exact match.”
- Partial Match – A, Z, B, P. Street address matches, ZIP code does not, or vice versa. You may want to follow-up before shipping the merchandise or providing the service. Things to look for in these orders: larger than normal orders; orders containing several units of the same item; orders shipped overnight; orders shipped to an address other than the billing address.
- No Match – N. Neither the street address nor the ZIP code match. Typically a strong indicator of fraud, however the cardholder may have moved recently and not yet notified the issuer or the cardholder may have given you the shipping address instead of the billing address. Actions you should take include: call the customer to verify the phone number, the address and whether the cardholder has recently moved; call the card issuer to determine whether the name, address and telephone number match the information on file; use directory assistance or internet search to contact the individual at the billing address and confirm that he or she initiated the transaction.
- Unavailable, Not Supported, Non-Compatible – U, S, G, I, C. Address information is unavailable for that account number, or the card issuer does not support AVS. Since you now have no way to verify the address, you must decide whether to investigate further, proceed, or cancel the transaction. One solution is to fax a credit card slip to the consumers requesting a signature be faxed-back to actually verify the order.
Lower your card acceptance cost
Learn how to accept credit and debit cards at the lowest processing costs. The Payment Card Acceptance kit contains a video and an e-book:
- Video – Card Acceptance Best Practices for Lowest Processing Costs (18 min).
- E-Book – Payment Card Acceptance Guide (19 pages).
Says:
May 22nd, 2010 at 5:03 pm
[...] Card Security Code re-presentment rights*. In cases of chargebacks associated with the use of the Address Verification Service (AVS) and the Card Security Codes (CVV2, CVC 2 and CID), processing banks can represent a charged back [...]
Says:
May 22nd, 2010 at 5:20 pm
[...] Address Verification Service (AVS) to confirm billing addresses for paper ticket sales. AVS helps you fight fraud by enabling you to [...]
Says:
May 22nd, 2010 at 9:39 pm
[...] Address Verification Service (AVS) response code, if applicable. [...]
Says:
May 23rd, 2010 at 12:49 pm
[...] Address Verification Service (AVS). AVS can only be used to confirm addresses in the United States, unless a card issuer supports International AVS and then AVS can validate addresses in the United Kingdom, but other non-U.S. addresses cannot be verified. Without the benefit of using AVS, e-commerce merchants will not be protected from certain types of chargebacks and will have no recourse against them. [...]
Says:
May 24th, 2010 at 11:22 am
[...] For all card-not-present transactions, including the ones set up by phone or mail, submit Address Verification Service (AVS) and Card Security Code (CVV2, CVC 2 or CID) requests with the authorization. For internet [...]
Says:
May 24th, 2010 at 6:42 pm
[...] set up as well. Every major gateway supports the latest fraud prevention solutions, including the Address Verification (AVS) and Card Verification (CVC 2, CVV2, and CID) [...]
Says:
May 24th, 2010 at 6:53 pm
[...] prevention solutions, such as the Address Verification Service (AVS), Card Security Verification Codes, Verified by Visa, MasterCard SecureCode and fraud scoring [...]
Says:
May 25th, 2010 at 9:53 am
[...] is Merchant Direct Access Service. The Merchant Direct Access Service (MDAS) provides Address Verification Service (AVS) authorization services to smaller merchants operating in a card-not-present environment, mainly to [...]
Says:
May 27th, 2010 at 7:34 pm
[...] Use the Address Verification Service (AVS). AVS enables merchants that accept card-not-present transactions to compare the billing address (the address to which the card issuer sends its monthly statement for that account), provided by a customer with the billing address on file with the card issuer before processing a transaction. After comparing the provided address with the one they have on file for their cardholder, the card issuer responds by issuing an AVS Response code. Address verification and transaction authorization occur simultaneously and, within seconds, the merchant receives both results. [...]
Says:
May 30th, 2010 at 11:46 am
[...] you use the Address Verification Service (AVS) or Card Security Codes (CVV2, CVC 2 and CID), look for transactions submitted without an AVS or a [...]
Says:
May 30th, 2010 at 1:24 pm
[...] Use the Address Verification Service (AVS) with the first payment. The AVS verifies the validity of the billing address provided by your customer by comparing it to the one on file with the card issuer. [...]
Says:
May 30th, 2010 at 1:39 pm
[...] Address Verification Service (AVS) match and a shipping address that is the same as the billing address. An AVS match, combined with a [...]
Says:
May 30th, 2010 at 4:34 pm
[...] addresses and you should carefully examine such orders before fulfilling them. Be advised that the Address Verification Service (AVS) can only be used to confirm addresses in the U.S., unless the card issuer supports international [...]
Says:
May 31st, 2010 at 3:52 pm
[...] the cardholder’s billing address. You can submit an address verification (AVS) request to the card issuer separately or as part of the authorization request. Either way, you will [...]
Says:
May 31st, 2010 at 4:24 pm
[...] payment plans, as well as process deferred payments. All major payment gateways now support AVS and CVV2 / CVC 2 verification [...]
Says:
May 31st, 2010 at 5:26 pm
[...] Always use the Address Verification Service (AVS). [...]
Says:
June 1st, 2010 at 9:44 am
[...] Address Verification Service (AVS). AVS enables merchants that accept card-not-present transactions to compare the billing address (the address to which the card issuer sends its monthly statement) provided by a customer with the billing address on the card issuer’s file before processing a transaction. A mismatch is a strong indication of fraud. [...]
Says:
June 1st, 2010 at 10:56 am
[...] Use the Address Verification Service (AVS) for each transaction. AVS enables merchants that accept card-not-present transactions to compare the billing address (the address to which the card issuer sends its monthly statement for that account) provided by a customer with the billing address on the card issuer’s file before processing a transaction. [...]
Says:
June 4th, 2010 at 7:26 pm
[...] Use the Address Verification Service (AVS). AVS verifies the validity of the billing address provided by your customer by comparing it to the one on file with the card issuer. [...]
Says:
June 7th, 2010 at 9:55 am
[...] Make sure that your prospective processor supports Verified by Visa, MasterCard SecureCode, the Address Verification Service (AVS) and the Card Security Codes (CVV2, CVC 2 and [...]
Says:
June 7th, 2010 at 5:31 pm
[...] Address Verification Service (AVS). AVS enables merchants that accept card-not-present transactions to compare the billing address (the address to which the card issuer sends its monthly statement for that account) provided by a customer with the billing address on the card issuer’s file before processing a transaction. After comparing the provided address with the one they have on file for their cardholder, the card issuer responds by issuing an AVS response code. Address verification and transaction authorization occur simultaneously and, within seconds, the merchant receives both results. [...]
Says:
June 8th, 2010 at 9:55 am
[...] an Address Verification Service (AVS) mismatch. Implementing this fraud screening element is based on the assumption that you are [...]
Says:
June 11th, 2010 at 7:28 pm
[...] scrutiny, you should obtain authorization from the card issuer. The authorization should include Address Verification Service (AVS) and Card Security Codes (the 3- or 4-digit codes on the back or front of credit and debit cards) to [...]
Says:
June 25th, 2010 at 9:14 am
[...] Address Verification Service (AVS). AVS enables merchants who accept credit card payments in a non-face-to-face setting to compare the billing address (the address to which the card issuer sends its monthly statement for that account) provided by a customer to the billing address on the card issuer’s file before processing a transaction. After comparing the provided address with the one they have on file for their cardholder, the card issuer responds by issuing one of the AVS Response code listed in the table below. [...]
Says:
July 16th, 2010 at 9:44 am
[...] Address Verification Service (AVS). AVS enables merchants that accept card-not-present transactions to compare the billing address (the address to which the card issuer sends its monthly statement for that account) provided by a customer with the billing address on the card issuer’s file before processing a transaction. [...]
Says:
July 18th, 2010 at 1:40 pm
[...] by the customer. Authentication is done by utilizing various fraud prevention tools, including Address Verification Service (AVS) and Card Security Codes (CVV2, CVC 2 and [...]
Says:
August 5th, 2010 at 6:29 pm
[...] fraud-prevention tools to help reduce your risk exposure. The most widely used among them are the Address Verification Service (AVS), the Card Security Codes (CVV2, CVC 2 and CID), Verified by Visa and MasterCard [...]