![]() As a result, a merchant can find themselves with a transaction where there is full, partial or no AVS match. The request pings the issuing bank with the billing address information used in the order, and the service returns a code that corresponds to how well the address entered matches up with the address in the issuing bank’s file. (Note: currently, AVS is only available in the US, UK, and Canada.)įor most merchants, the request for AVS verification on a transaction is automatically submitted via the payment gateway/processor alongside the payment authorization request. Specifically, AVS checks whether or not the numeric address and zip code entered in the order match with the address kept on record at the issuing bank. Because of this, AVS is often very helpful to merchants during order review. AVS can be used as a method to verify this, because if the person placing the order and the cardholder both list the same billing address, they are likely to be the same person. ![]() In this article, we’ll give a background on AVS and the details on how the service works, share who holds the liability for paying a merchant chargeback on a transaction with full AVS match, and how to use AVS in order review.Īs a reminder, the goal of order review is for a merchant to confirm that the person placing the order and the cardholder are the same individual. However, most merchants don’t understand how best to use AVS in Ecommerce Fraud Detection, nor their liability on transactions they accept where the AVS check returned a full match. Depending on whether they match fully, partially, or not at all, the merchant can use that information in their decision on whether or not to accept or cancel the order.Īs such, seeing a full AVS match on a transaction during order review offers a basic level of assurance for merchants that the order is not fraudulent. An AVS check compares the billing address used in the transaction with the issuing bank’s address information on file for that cardholder. ![]() Originally developed for use with mail and catalog orders, AVS is now commonly used by e-tailers, and other card-not-present merchants, as a method to verify the validity of an order they receive. One of the most widely used fraud prevention tools in card-not-present transactions is the Address Verification Service, or AVS.
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