Before reading this article, I would recommend watching our FYI explaining the address verification service for credit card processing.

These are the three misconceptions about the credit card address verification service.

#1 | AVS impacts the approval (FALSE)

The AVS result of a credit card transaction doesn’t actually impact if the transaction is approved or declined - it only gives you the result of the address verification. Merchants often assume that if a bad address is entered, the transaction will be declined. That is not the case. It is up to you as the merchant to decide if you want to proceed with the transaction, or reverse it.

#2 | AVS verifies the cardholder name (FALSE)

Most websites will ask you to enter the cardholder name when entering the rest of the credit card information. However, Visa and MasterCard do not provide a way to verify that cardholder name. Most merchants assume that the name is verified as part of the address verification, but that is not the case.

#3 | All credit card banks participate in AVS (FALSE)

While most banks in the US, Canada and the UK participate in the address verification service, most international banks don’t. That means that if you’re accepting international orders, the AVS service isn’t very useful in fighting fraudulent transactions.


So there you have it, the 3 most common misconceptions about the address verification service.

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