Address Verification Service (AVS) is a fraud prevention system that, when used effectively, can help limit fraud and chargebacks.
AVS works by verifying that the address entered by the customer is associated with the cardholder's credit card account. AVS is a MasterCard service designed to stop fraud in e-commerce transactions where the card is not physically present (Card Not Present (CNP)); however, it is widely used by many major credit card companies.
During the payment process, your customer's address is entered; this address is then compared with the address on file at the card-issuing bank. After the addresses are compared, the card bank returns an AVS code to the merchant. This AVS code can be used as a guide to determine how to proceed with the transaction.
Generally, AVS authentication is used as part of a multi-layered fraud protection system to ensure that valid transactions are approved and those considered suspicious are declined.
So does the AVS system exist in Turkey?
It is not yet used in Turkey. It is used in Canada, the United States, and the United Kingdom. For this system to be usable, a country's address information system needs to be reliable. If we ask how many of us even know the postal code of our own home address, and whether we use it consistently in our addresses, we probably get the answer to why this system is not used in our country.
What are the steps involved in AVS authentication?
When cardholders enter their address during payment and click the Submit button, the following steps take place.
- The payment gateway transmits this address data to the customer's credit card brand (Visa, MasterCard, Discover, or American Express).
- The credit card brand then sends this information to the card-issuing bank (issuer).
- The card bank compares the address with the address stored on file.
- The card bank then sends a response code and an AVS response code back to the payment gateway.
- This process takes only a few seconds and is not visible to customers.
So what are the AVS codes and their explanations?
The AVS response codes and their explanations are listed below. You can also find the Address and Postal Code response codes associated with the AVS code below.
| AVS Response Codes | |
|---|---|
| B | No address information was sent in the transaction data, so the AVS check could not be performed |
| E | The AVS data provided is invalid, or AVS is not allowed for the card type submitted |
| R | AVS was unavailable at the time the transaction was performed. Retry the transaction |
| G | The card-issuing bank is not based in the US and does not support AVS |
| U | Address information is not available for the customer's credit card |
| S | The US issuer bank does not support AVS |
| Address and Postal Code Response Codes | |
| N | The street address and 5-digit postal code do not match the address and postal code on file for the card |
| A | The street address matches, but the 5-digit postal code does not match |
| Z | The first 5 digits of the postal code match, but the street address does not match |
| W | The 9-digit postal code matches, but the street address does not match |
| Y | The address and the first 5 digits of the postal code match perfectly |
