AVS

AVS stands for "address verification service". It’s sometimes also referred to as "address verification system".

AVS is an identity verification tool that allows businesses to detect and prevent potentially fraudulent credit or debit card transactions by comparing the billing address provided by a customer with the billing address on file for the card to confirm that they match. Businesses in the United States, Canada and the United Kingdom use AVS to minimize fraudulent transactions and unnecessary chargebacks.

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How does address verification service work?

Payment processing providers and issuers (also called issuing banks) offer AVS to businesses as a tool to cut down on credit card fraud. AVS occurs during the card authorisation portion of a customer transaction. When a customer submits a card for payment during checkout, they provide a billing address. Upon accepting payment information, the business’s payment processor contacts the bank that issued the card with a request to authorise the purchase. During authorisation, the issuer checks for a few things:

• The account has adequate funds or credit available to cover the amount requested in the transaction.
• The card is currently valid.
• The card verification value (CVV) code matches the one inputted during the transaction. (This is the three- or four-digit code usually located on the back of the card next to the signature line.)
• The billing address provided during checkout matches the address on file for the card. (This is the "address verification" component of the AVS authentication process.)

AVS is typically used to authenticate a cardholder's identity for card-not-present (CNP) transactions, like online purchases.

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How to start using address verification service?

Address verification (AVS) checks two pieces of information, the postal code and the billing street address. AVS checks determine whether this information matches the billing address on file with the card issuer.

If enabled, these address checks can fail on legitimate payments in some situations. For example, a customer entering their address incorrectly or moving and not updating their address with the card issuer could cause the address check to fail.

Support for both types of AVS checks varies by country and card issuer (for example, certain countries don’t use a postal code or some card issuers don’t support street address verification). However, street address verification is commonly supported for cards issued in the United States and Canada.

A merchant needs to send additional parameters in Authorisation or Pre-authorisation requests. Those parameters should be:

Minimum required requirements for AVS check is a combination of country and zip code. For better AVS validation, recommends submit full information according to table.

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Those fields can be submitted in the request for Hosted Payment Page as well. If no address parameters present, then Hosted Payment Page will show additional fields to the customer.