Let’s talk about AVS (Address Verification Service) on Stripe and why it matters for your business.
Credit card fraud can hit any business that accepts payments, especially online. AVS is one of the simplest and most effective ways to verify a cardholder’s information and reduce fraudulent transactions.
What does AVS stand for?
AVS = Address Verification Service (sometimes called “Address Verification System”).
What is AVS?
AVS lets you check if the billing address entered by a customer matches what the card issuer has on file.
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Commonly used in the U.S., Canada, and the U.K.
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Essential for card-not-present transactions like online purchases
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Helps reduce fraud and unnecessary chargebacks
How does AVS work?
When a customer enters their card info on Stripe:
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They provide a billing address.
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Stripe sends the info to the issuing bank.
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The bank checks:
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Available funds or credit
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Card validity
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CVV code match
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Billing address match (this is the AVS check)
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The bank responds with an AVS code indicating whether the address matches.
This usually happens in just a few seconds.
AVS Response Codes
Stripe uses AVS response codes to indicate how closely the billing address matches the one on file with the card issuer. These codes help you decide whether to accept, decline, or review a transaction. You can learn more about AVS response codes and what they mean directly from Stripe’s resource here: What is Address Verification Service (AVS).
What does “AVS rejected” mean?
It happens when the card issuer declines a transaction because the billing address doesn’t match. Customers might see an error at checkout if their info is incorrect.
What is an AVS mismatch?
An AVS mismatch occurs when the billing address provided doesn’t match the bank’s records.
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Often results in a declined transaction
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Can happen if a customer moved and didn’t update their billing address