Address Verification Service

Address Verification Service (AVS) is a system that verifies the accuracy of a customer’s provided address information, typically used during e-commerce or credit card transactions. It compares the billing address provided by the customer with the address on file with the cardholder’s issuing bank.

AVS primarily uses the numerical portion of the address (street number and ZIP code) to validate the data. By cross-referencing this information with the cardholder’s bank records, it can determine the level of match between the two addresses. The response generated by the AVS is usually in the form of a code indicating the degree of address match along with a recommendation for further action. This helps merchants identify potentially fraudulent transactions by examining the response code and taking appropriate measures. AVS can significantly reduce the risk of fraudulent activities, improve overall security, and minimize chargebacks in e-commerce and card-not-present transactions.