Overview
Address Verification Settings (AVS) help confirm that a customer's billing address matches what their card issuer has on file. This extra layer of security is especially useful for card-not-present transactions—like online or phone orders—where the risk of fraud is higher. By fine-tuning AVS rules, you can better detect suspicious activity while still allowing legitimate purchases to go through.
What Is AVS?
Address Verification Service (AVS) is a fraud prevention tool that compares the billing address entered by the customer—specifically the street address and ZIP code—against what the card issuer has on file.
- A match increases the chance that the cardholder is legitimate.
- A mismatch may indicate potential fraud or incorrect information.
Why Use AVS?
AVS is especially useful if you:
- Sell products online or over the phone (card-not-present environments).
- Want to reduce the number of fraudulent chargebacks.
- Need to align with processor or industry requirements for fraud controls.
How AVS Works
- The customer enters their billing address during checkout.
- The transaction is sent to the card issuer, which checks the provided address.
- The issuer returns an AVS response code.
- Based on your configured AVS rules, the transaction is either accepted or rejected.
Setting Up AVS Rules
To configure AVS settings:
- Go to Options > Settings > Address Verification in your Merchant Portal.
- Check the boxes for the AVS rules you'd like to enforce.
- If you have multiple processors, use the Processor dropdown to configure settings for each one.
- Click Save to apply changes.
You can also set separate rules for Non-U.S. International transactions.
When to Reject a Transaction
You can configure AVS to reject transactions based on specific combinations of address match results.
If the Street Address Matches:
| ZIP Code Result | Code | Description | Action Option |
|---|---|---|---|
| Matches | Y | First 5 digits match | Allow or Reject |
| Doesn't Match | A | First 5 digits do not match | Allow or Reject |
If the Street Address Does NOT Match:
| ZIP Code Result | Code | Description | Action Option |
|---|---|---|---|
| Full Match | W | 9 digits of ZIP match | Allow or Reject |
| Partial Match | Z | First 5 digits match | Allow or Reject |
| No Match | N | First 5 digits do not match | Allow or Reject |
Other AVS Conditions You Can Block
You can also choose to reject transactions for the following AVS response scenarios:
- B: Address info not provided
- E: AVS error occurred
- G: Card issued by a non-U.S. bank
- R: System unavailable, retry suggested
- S: AVS not supported by issuer
- U: Address info unavailable
One-Time AVS Check Option
For repeat billing or subscriptions, you can choose to verify the billing address only during the first transaction. If it passes, future charges using that card won't trigger another AVS check.
Viewing AVS Rule Impact
At the bottom of the AVS Settings page, you'll see how each AVS response code is currently handled:
- ✔ Green Check – Allowed
- 🟦 Blue Box – Blocked by U.S. Domestic rules
- 🛡 Yellow Shield – Blocked by Non-U.S. International rules
- 🟥 Red Shield – Blocked by both U.S. and International rules
AVS History Log
Every change made to your AVS settings is tracked in a History section for accountability and compliance. This includes:
- Timestamp of change
- Username of the person who made the change
- Rules added or removed
Additional Considerations
- AVS applies to eCommerce and MOTO (Mail Order/Telephone Order) transactions.
- It does not apply to retail (card-present), credit, or offline transactions.
- If no country is passed with the transaction, U.S. AVS rules apply by default.
- Even if a transaction is rejected by AVS, it may still be authorized by the card issuer. The gateway will then void or reverse it automatically.
Common Questions
Does AVS work internationally?
AVS is mainly supported in the U.S., Canada, and the U.K. For other countries, AVS may be unavailable or limited.
Does AVS guarantee a fraud-free transaction?
No. AVS helps reduce fraud but doesn't guarantee prevention. Use it with other tools like CVV and velocity checks.
What happens if a transaction is declined due to AVS?
The transaction will be marked as "AVS REJECTED" in the transaction details and will not be processed.
Need Help?
If you’re unsure how to set up your AVS preferences or have questions about specific response codes, please contact your Merchant Service Provider for assistance.