What’s AVS?

One of the most contentious issues when it comes to e-commerce and credit card processing for websites is the issue of fraud. More accurately, it’s the implementation of certain methods to either completely eliminate fraud, or at least curb it dramatically. One of the weapons in the war against credit card fraud is known as AVS, or Address Verification Service.

Does AVS Work?
It’s probably not realistic to think that fraud can or will ever be entirely eliminated, especially in an environment like the Internet, where would-be criminals and repeat offenders can hide behind the veil of anonymity. But AVS is a tool that can be used to lower risk. Its usage can be decided by your client, the selling merchant.

Is It Required?
Banks and e-commerce merchant account providers don’t require merchants to perform address verification, but can bill higher surcharges for transactions that are completed without it. This leaves your client with a bit of soul searching to do: if they’re concerned about paying higher credit card processing rates, or if they’ve been frequently hit by fraudulent purchases, implementing some form of AVS is in order. But if your client can afford to absorb higher rates and experiences low instances of fraud, skipping AVS could be an option to explore.

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