| You're accepting credit cards and hopefully things | | | | The AVS provides a code that is returned with |
| are going smoothly. Well at least until fraud takes | | | | the authorization result that indicates the level of |
| place. Don't be alarmed, there is a way to | | | | accuracy of the address match. The response |
| minimize and prevent it from happening. | | | | codes and their definitions are as follows: |
| If the majority of your business is generated | | | | Response Code Definition |
| from card not present transactions, then it's very | | | | X Exact match, address and 9-digit zip code |
| important that you understand how Address | | | | Y Exact match, address and 5-digit zip code |
| Verification Services function. | | | | A Address matches, zip code does not |
| AVS is the process of validating a cardholder's | | | | W 9-digit zip code matches, address does not |
| given address against the issuer's records to | | | | Z 5-digit zip code matches, address does not |
| determine accuracy and deter fraud. This service | | | | N Address and zip code doe not match |
| is required by VISA and MasterCard as a part of | | | | U Address information is unavailable |
| credit card authorization for mail order / telephone | | | | R Retry, system is unavailable |
| order transactions. The non-qualified rate will be | | | | S Service is not available |
| applied to all card not present transactions that do | | | | E Data not available / error invalid |
| not use AVS. Understanding the AVS process can | | | | A merchant must establish certain parameters in |
| save you hundreds, if not thousands in fees, | | | | order to accept card orders online. These |
| fraud, and from charge backs. | | | | parameters are set up and passed on to the |
| Many merchants are not aware of this regulation. | | | | merchant provider and bank. When a customer |
| As a merchant, that accepts or will be accepting | | | | enters a credit card number and address, that |
| many card not present transactions, please | | | | information is sent through the AVS. Based on |
| contact your merchant account provider and | | | | the parameters the merchant has in place, along |
| make sure AVS is built into your equipment's | | | | with other information, the credit card will be |
| processing system. | | | | either accepted or denied. |