Address Verification Service

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Recently we discussed the purpose of the credit card CVV (security code).

This week we will discuss the purpose of AVS when processing a credit card transaction. The Address Verification System (AVS) is a system used to combat fraudulent activity by verifying the address of a person claiming to own a credit card. The system will check the billing address of the credit card provided by the user with the address on file at the credit card company.

Should I ask my clients for their credit card billing address?
The whole address – or just the zip code?
What about foreign cards with a strange zip code?

AVS verifies the numeric portions of a cardholder’s billing address. For example, if the address is 101 Main Street, Highland, CA 92346, AVS will check 101 and 92346.

If you are swiping credit cards then there is no need to verify the card billing address.

If you are processing credit cards in a non-face-to-face manner (phone, mail, or online) it is important to obtain and enter the card billing address for two reasons:

1. Preventing Fraud. Criminals using a stolen credit card will give their own address, that of an accomplice or a drop location — any address but that of the actual cardholder, if they even know it — to get their hands on the stolen goods. AVS is a proven deterrent to credit card fraud. If your terminal or gateway returns an “AVS Mismatch” result – take caution before proceeding with this transaction.

2. Processing Fees. A large majority of credit cards (i.e. most Visa cards) require AVS to be processed in order to qualify the transaction for the best processing rate. While there is usually a minimal fee for every AVS, the processing fee savings obtained almost always far outweigh the cost.

Note: To reduce processing costs all that’s necessary is to enter the card zip code. However for fraud prevention you will want to enter the street number and zip.

When it comes to foreign credit cards with a non-standard numeric zip code, it is important to note that not all foreign issuing banks participate in AVS. While most Canadian and some UK banks do participate, many others do not. To enter a foreign zip code you must select the correct “Country” for the system to accept the foreign zip code.

The threat of credit card fraud is very real. Be proactive and take the steps to reduce your exposure. Additionally, at Banquest we are always available to assist our merchants with setting up proper security procedures which is the first and best way to keep your credit card processing secure.

Happy Tuesday & Happy Selling!
Kevin