Address Verification System (AVS)

In an Address Verification System (AVS) lookup, a mismatch means that the details don’t match, and the payment is rejected. An AVS mismatch happens when the user enters an address at checkout that doesn’t match the one that the card issuer has on its file for that particular card. That’s why the issuer typically rejects the transaction in cases like these. 

During the address check via AVS, the issuer cross-checks key information, such as if:

• The billing address matches the address on file with the issuer 
• The card is valid and active
• The account has sufficient funds or available credit
• The card verification value (CVV) matches the one entered by the user at checkout

In general, address verification, wether though AVS or similar means that are targeted at fraud prevention, helps businesses with risk management. 

It brings other benefits, like: 

• Reducing chargebacks and fake registrations on marketplaces and other online platforms 
• Preventing all kinds of fraud, starting from payment fraud and ending in identity-related fraud types
• Maintaining accurate risk profiles and more reliable customer data 
• Meeting regulatory compliance requirements, such as Know Your Customer (KYC) rules or Anti-Money Laundering (AML) standards

This is especially important for all online businesses where face-to-face transactions aren’t an option. 

No. The Address Verification System (AVS) availability depends on two factors: the card provider and the country. For example, the biggest markets that support the AVS infrastructure include the U.S., the UK, and Canada. In other words, foreign cards that are issued in a different country than where the transaction is processed won’t be included in the system. 

No. Often, high-risk regulated businesses, such as banks and fintech platforms, don’t use AVS as a standalone fraud prevention measure because it doesn’t verify whether an address is real. However, it checks if the user’s address matches the issuer’s records. 

For that, updated records need to be used. To solve this issue, companies use Address Verification checks, which are backed by asking the user to upload Proof of Address (PoA) in real-time, such as a recent utility bill with their address on it.