What does the Address Verification Service (AVS) verify?

The Address Verification Service (AVS) is designed to enhance payment security by verifying the address of the individual who is attempting to use a credit card for a transaction. When a customer enters their billing address during the payment process, this information is compared against the address on file with the credit card issuer. If the addresses match, it indicates that the person making the purchase is likely the legitimate cardholder, reducing the risk of fraudulent transactions.

In this context, the verification process is specifically focused on confirming whether the address provided by the individual matches what is recorded with the card issuer. This is a critical component of the overall security measures that protect against unauthorized use of credit cards. Understanding the primary role of AVS helps merchants and service providers implement effective tools for fraud prevention, particularly in card-not-present transactions.