What is the benefit of using AVS for merchants?

Using Address Verification Service (AVS) provides significant value to merchants by verifying the legitimacy of the cardholder. When a customer makes a purchase, the AVS checks the billing address provided by the customer against the address on file with the card issuer. This process helps merchants ascertain whether the person attempting to make the transaction is indeed the cardholder, thus reducing the risk of fraud.

By ensuring that the name and address provided match the information held by the credit card company, merchants can enhance security in their online transactions. This verification serves as a first line of defense against fraudulent activities, which can lead to chargebacks and financial loss.

While AVS does not guarantee transaction approval, increase sales volume, or eliminate all fraudulent transactions, it is a crucial tool in fraud prevention, allowing merchants to make informed decisions about whether to accept or decline a transaction based on the legitimacy of the cardholder’s information.