Why avs mismatch

These filters are complicated to understand as they vary by issuer and card type. With each order placed online, the payment processor sends a request for an AVS approval to determine if there is an address match.

If authorized, an issuer will approve the processor to authorize the transaction request. Once the transaction gets initiated, the merchant receives a particular AVS code signaling the type of match. This can include three options: Match, partial match and mismatch see the chart below for an explanation of each AVS mismatch code.

Typically, depending on the level of risk for each transaction, a merchant can decide on which type of AVS code they want to accept or reject.

This helps merchants control their risk levels while maintaining positive relationships with their processors and issuers. Traditionally, a payment processor will provide basic checklists to merchants so they can quickly decide which order to reject and which to accept.

These rejection checklists often suggest rejecting a request based on the following:. For merchants who recognize a recurring customer, they should trust the customer and allow payments to continue. For new customers, merchants must weigh the benefits versus the risks with each transaction. When a transaction is flagged, be prepared to provide an immediate reason to the customer so they can remediate the situation without losing that customer.

When a merchant receives an AVS mismatch, they can do one of three things:. Selecting which option all comes down to how well the merchant can manage risk, and how willing they are to trust a particular customer. If approved when the risk is higher, a merchant may pay a higher transaction rate to compensate for the risk. Rerunning the transaction can add more risk since it can keep a charge pending, which can cause friction with the potential customer.

Managing these issues personally without immediately rejecting a purchase can show a customer you are just trying to protect your business, and themselves, from fraud.

To maintain smooth customer relationships, managing AVS codes are all about knowing your customer, determining the level of risk with each transaction and being able to quickly respond to AVS rejections. Box is entered incorrectly for verification purposes. We hope this information can reduce some payment friction, maintain your happy customer base and result in less frustration for all parties involved going forward.

Have you run into awkward AVS declines at checkout? What has your experience been in resolving the issue? Let us know in the comments section below! Editor's Note: This post was originally published in March and has been updated for comprehensiveness and accuracy. Christina Lavingia delights in crafting content that helps business owners fight fraud, reduce risk and process payments with ease.

A diligent cashier could ask to see photo ID to confirm that the person in front of her is, in fact, the cardholder. The name and face should match. Address Verification System AVS is a common fraud-prevention measure for card-not-present transactions. Presumably, a fraudster would not know this information and would be prevented from making an e-commerce or over-the-phone purchase.

As a business owner, you need to make a profit from the goods and services you provide in order to stay in business. This is why fees, especially for the privilege of simply accepting credit cards, can be so frustrating. But they also know merchants often flag a significant distance between billing and shipping address. This fraud MO is more likely to be used in densely populated areas, such as Manhattan.

Because many people live within a single ZIP code area and there are a lot of residents at each address e. In other words, full or partial AVS match does not mean an order is legitimate. Most credit cards issued outside the US, Canada, and the UK do not support AVS, meaning the billing address supplied by the buyer cannot be used to verify the card. Due to the filters, the merchant was not able to accept orders from Australia and New Zealand — because most payment cards issued there do not support AVS.

Since moving to Riskified, the shop has removed all AVS filters, allowing it to expand its international sales. Even if the credit card used in the transaction does support AVS, there are many explanations for AVS mismatch besides fraud. Some common examples are:. Reason for credit card AVS mismatch: Buyer listed same address of the university as both the billing and the shipping address.

Hypothetically, it is possible that the buyer is not the legitimate cardholder. In short, AVS mismatch does not mean an order is fraudulent. Merchants who automatically reject orders based on AVS mismatch are turning away legitimate customers.