What is the role of AVS in transactions?

The role of Address Verification Service (AVS) in transactions is significant in enhancing security and preventing fraud. This service specifically verifies the billing address provided by the customer against the address on file with the card issuer. By ensuring that these addresses match, merchants can reduce the risk of fraudulent activities associated with credit card transactions, thereby protecting both themselves and their customers.

When a transaction is initiated, the payment processor sends the billing address information to the card-issuing bank, which then checks the information against its records. If the addresses match, the transaction is more likely to be legitimate, while discrepancies may trigger additional scrutiny or decline the transaction altogether. This verification process is a critical step in reducing chargebacks and unauthorized use of credit cards.

The other options do not accurately describe the function of AVS. Options referring to Average Value Score, Automatic Value Submission, or measurement of variable sales do not pertain to the core purpose of AVS, which is solely focused on verifying the address associated with a payment method.