What is an Address Verification System (AVS)?

An AVS is a method whereby the Merchant is asked to supply address information for the cardholder for non-swiped transactions.  The Merchants system sends the street address and the zip code of the cardholder’s billing address to the Front-End Processor.  The Front-End Processor makes a request to the Issuing Bank to verify the validity of the address and lets the Merchant’s system know whether the address supplied is valid.

Electronic Merchant Systems Payment Processing Glossary :

Defining key payment processing and merchant services industry terms to help business owners make better decisions.




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