What does the "Z" response in AVS indicate?

The "Z" response in Address Verification Service (AVS) indicates a partial match on the zip code only. This means that the system has been able to verify the zip code provided by the user but did not find a matching street address. In scenarios where secure payment processing is involved, such as when conducting credit card transactions, a partial match can be useful for identifying potential issues with the accuracy of the billing information provided by the customer. This response helps merchants and payment processors assess the risk of transaction fraud.

Understanding the nuances of AVS responses is crucial, especially in payment processing environments, as they can inform decisions about whether to approve or decline a transaction based on the associated risk factors. In contrast, the correct identification of the "Z" response focuses on the specific nature of the match—highlighting that only the zip code was matched, while the street address remains unchecked. This distinction is important for ensuring the integrity of transactions and safeguarding against fraudulent activities.