AVS Basics

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AVS attempts to match the billing address entered as part of ordering process against the address listed on the credit card statement, as recorded by the Visa/MC Interchanges.

To overcome the problems with abbreviations, misspelling, etc… the AVS strips away all letters and attempts the match only the numbers in the street addresses and the zip code. No street names or the name of the state are checked during this process.

The AVS information is only obtained back from the processor after an authorization is performed. If the merchant wishes to reject those transaction which fail to meet the desired AVS matching level then the system will perform an immediate void of the transaction, inform the consumer that their address did not match and allow the consumer to enter a new address.

Since an authorization has already occurred, most merchant processors will assess their per transaction fee for this authorization even though the transaction was voided.

Because AVS information is also only available on Credit Cards issued through US banks, merchants who wish to accept orders from international customers must select a less stringent matching rule or they will end up rejecting those orders.