Address Verification is a security measure used by credit card processors and e-commerce businesses to validate that the billing address entered by a customer matches the address on file with the cardholder’s credit card company.
During an online transaction, the customer enters their billing address as part of the checkout process. This information is then sent to the card issuer, which checks it against the address they have on file for the cardholder. If the addresses match, the transaction is approved. If they don’t match, the transaction may be declined.