Address Verification Systems (AVS)

An Address Verification System (AVS) is a fraud prevention tool used in the payment processing industry. It checks the address provided by the cardholder during a transaction against the address on file with the card issuer.

When a cardholder makes a purchase, they may be asked to provide their billing address. The payment system sends this information to the card issuer, who checks it against the address they have on file for that card. If the addresses match, the system generates an AVS match code, which can provide the merchant with additional confidence that the transaction is legitimate.

AVS is particularly important for card-not-present transactions, such as those made online or over the phone, where the risk of fraud is higher. However, it’s not foolproof, as it only confirms the address, not the identity of the person making the purchase.