Address Verification Service, or AVS, is a tool that helps online merchants authenticate the possession of a card by a particular customer. In this article, we would like to tell you about AVS in detail and particularly about how the service can secure online payments.
Address verification is a process that, when it works effectively, can help to reduce the number of frauds and chargebacks. This process is another step for merchants to keep their business’s online payments secure, safe, and reliable.
During this verification process, a customer enters an address, which is then compared to the address specified in the issuing bank file by a billing checker. If the comparison is successful, the issuing bank approves the transaction. If the address is not verified, it returns the verification code to the seller. The checking process lasts just a few seconds and cannot be seen by customers. Address verification codes are one of the main elements of the whole technology. The code is used as a trigger to determine how to proceed with the transaction.
What makes the Address Verification Service important? As many merchants know, one of the main challenges they must face with phone and internet transactions is confirming that the person making the purchase is the actual cardholder or an authorized user. AVS can help in solving this problem.
Frauds and chargebacks can really hurt online business. To prevent them, it is better to use a multi-layered risk prevention strategy approach that consists of different technologies able to secure merchants from any type of theft. This approach is based on a combination of the following tools: card security codes, fraud filters, AVSs, device authentication, biometric technology, and more. As an incomplete strategy, Address Verification Service is part of this combination and is not used as an independent tool.
You may ask: when will address verification be needed for a transaction? There is no special need for this type of authentication, as it is just another way to check the ownership of a credit or debit card used by a customer. However, it is not so difficult for a merchant to start address verification for credit card and debit card applications. The range of companies offering different AVSs is wide, and these services are mostly included in complex anti-fraud solutions. At PurePay, we highly recommend you contact professionals or members of a company when you apply for assistance.
All major card services like MasterCard (for example, it has the Mastercard billing address verification system), Visa, and American Express support the Address Verification Service. Even though it is a universal tool that can secure online businesses, it should not be considered a panacea for all woes. Don’t forget that nowadays, address verification for bank accounts is used in the United States, the United Kingdom, and Canada only. If you would like to learn more, don’t hesitate to contact us.