Address Verification Services: How Does it Work for Identification?

by Muhammad Waleed
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AVS checks are a method for confirming a customer’s identification. The aim is to ensure the consumer is the cardholder using the card and not a thief making an illicit purchase. The verified address is linked to the payment card account. The address which the bank sends monthly bills or statements will be requested from the customer by AVS technology during the checkout process.

The building number and postal code, which make up the numeric elements of the billing address verification, will be examined by AVS. It is considered that the customer is the legitimate cardholder if the information they supply matches what the bank has on record. If they don’t fit, it’s assumed that someone else is trying to use the card fraudulently.

Workflow of Address Verification Solution?

An optional but highly suggested tool for managing fraud is AVS. It need to take the following actions if decide to use AVS:

  1. Request that AVS be enabled from your processor (or review its documentation). This option will typically be available in the administrative settings of online payment gateways.
  2. The majority of processors use established rules to approve or reject transactions automatically.
  3. In case of chargeback response circumstances, save the AVS response codes. AVS response codes are very strong evidence, particularly in conflicts involving fraud.
  4. Get in touch with your clients if a transaction is rejected. Customers’ funds may have authorization held if they receive an AVS “No Match” result. In other words, even though it refused the transaction, the money can still be frozen for a few days

What are the Benefits of Address Verification Services?

Let’s examine address verification service benefits:

Pros of Using AVS

AVS can lessen malicious fraud and the chargebacks that follow. Despite the limitations of the technology, Online address verification can aid in preventing unauthorized transactions. Even though the success rate has decreased, something is still preferable to nothing.

  1. Using AVS will generally result in lower fees. Transactions that have been validated using AVS are often categorized as “qualifying” transactions on your processor’s tiered-rate charge structure.
  2. Verifying an address can help recover more revenue. Transactions that don’t employ AVS are demoted to “mid-qualified” or “non-qualified.” When contesting erroneous chargebacks, AVS response codes support solid documentation.
  3. E-business added a verifying address tool to the transaction lifecycle. Its win rates returned to the average level.
  4. Services for address standardization and validation help businesses manage address databases while overcoming many of the challenges they face. This is especially true when list processing and address entry checking are coupled.
  5. Organizations can cut down on the amount of mail that is returned as undeliverable by verifying the accuracy of an address before mailing something. This validation may result in significant savings for businesses, depending on the quantity and frequency of mailings.
  6. Ensuring that a given address is accurate at the time of database entry. After that, list processing will assist e-businesses in achieving appreciable improvements in address data quality by routinely cleaning, verifying, and updating the address list.
  7. Businesses that use address verification and standardization services can send mail to customers more quickly and affordably than businesses that do not.
  8. The business is constantly seeking ways to increase and improve validate address matching. It also takes pleasure in providing some of the industry’s most comprehensive customer service solutions.
  9. All customers who require access to the address management services will be able to complete their preparations thanks to web-based services.
  10. Any institution that manages address data can rely on AVS to assist it in overcoming many of the difficulties that come with doing so. Customers will see the AVS’s immediate impact on their bottom line by lowering returned mail, increasing address data accuracy, improving customer communication, decreasing mailing costs, and speeding up delivery times.


Credit card processors, banks that provide the cards, and online retailers employ the address verification system as a fraud protection technique to identify questionable credit card transactions. The AVS checks to see if the billing addresses a customer enters during online marketing match the address listed on their credit card account.

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It is a vital step in the credit card authentication process and one of the most popular technologies for preventing fraud in online transactions.

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