The Importance of Address Verification Service, by Velocity Merchant Services

An address verification service (AVS) authenticates the billing information given by people who purchase items online or over the phone using a credit card. It does this by matching the data given to the merchant, either verbally or electronically, against the information held by the credit card company (the issuing bank). If the data does not match, the merchant receives either an email or a “declined” payment response. The email will explain the issue and from there, it can either contact the cardholder or deny the transaction. The customer also receives a notice and may be allowed to re-enter the address.

Buying items with a credit card online is one of the riskiest types of transaction due to its impersonal nature. Many processing companies charge higher fees for these types of payments because of the increased risk. However, an address verification service can lessen this concern by protecting both cardholders and merchants against fraud.

About the Author: Based out of Downers Grove, Illinois, Velocity Merchant Services (VMS) provides clients with processing services for major credit cards and debit cards along with a myriad of business boosting value-added services. Active in numerous areas of the industry, VMS understands the value of address verification services (AVS) and recommends all ecommerce and mail order-type merchants use AVS to protect themselves and their customers.