Address Verification System (AVS) rejection signifies that the billing address provided by a customer during a transaction does not match the address on file with the card issuer. This mismatch can occur during online or card-not-present transactions where the card’s physical presence cannot be verified. For instance, if a shopper enters an incorrect street number or zip code during an online purchase, the AVS check may return a rejection code.
AVS serves as a crucial fraud prevention measure for businesses, particularly e-commerce retailers. By verifying the billing address, it reduces the risk of fraudulent transactions initiated with stolen credit card information. Historically, AVS became more prevalent as online shopping grew, providing an additional layer of security against unauthorized purchases. The successful utilization of this system can lead to fewer chargebacks and financial losses for merchants.
