eCommerce glossary

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Address Verification System (AVS)

AVS is an acronym for Address Verification System. It is a system used to verify the address of a person or business. This is often used in order to prevent fraud and to ensure that the correct person or business receives the products or services they have purchased.

How does AVS work?

When a customer enters their information during a purchase, the AVS system will compare the address they have provided with the address on file with the credit card issuer. If the addresses match, then the transaction can proceed. If the addresses do not match, then the transaction will be declined.

Why is AVS important?

AVS is important because it can help to prevent fraud and to ensure that the correct person or business receives the products or services they have purchased. It is also important because it can help to protect businesses from chargebacks.

There are several benefits of using AVS, including:

  • Preventing fraud
  • Ensuring that the correct person or business receives the products or services they have purchased
  • Protecting businesses from chargebacks
  • Reducing the risk of data breaches

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