Definition of Address Verification Services – AVS

 Definition of  Address Verification Services

In order to ensure safe and smooth credit card transactions the Address Verification Services are customized tools provided by the credit card companies and affiliated banks to merchants and other members to detect any suspicious or unverified credit card activity.

Brief Explanation of Address Verification Services

The AVS checks and matches the address which is submitted by the credit card user against the billing address provided by the credit card holder to the issuing banks linked with the credit card processors. The addresses are often verified from the banks original records and customer databases. The cross checking of the addresses is done to authorize the credit card transaction by the merchants. Once the two addresses are matched the card holders receive a code which indicates the degree of similarity. This would eventually determine whether a certain transaction made through the credit card should be accepted or rejected. However, despite preventing transaction frauds the AVS might cause some unwanted problems for the legitimate card holders as well. This is because shifting from one area to another will obviously result in the change of an address and will sometimes cause the rejection of credit card transaction made by the original cardholder.


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