On average there are around 3.2 million reports of fraud across the U.S. in a single year. These amount to around $1.9 billion worth of losses. Credit card theft is the #1 most common cause of fraud, so it's critical that eCommerce stores keep safe from these common issues.
An Address Verification Service check, or AVS check, is one of the best ways to keep your business secure. Read on to learn what this term means, how the process works, and why you should invest in utilizing an AVS check in your fraud prevention program.
The Address Verification Service (AVS) check prevents fraud on credit cards used by both individuals and businesses. AVS checks verify that the person placing the order and the cardholder are the same people.
An AVS check ensures that the address and zip code of a customer's order matches the address kept on record with their bank. This prevents unauthorized users from using a credit card on your eCommerce website.
This multilayered protection system is available in the US, UK, and Canada.
AVS authentication comes in three steps. The first is the transmission of customer address data. The information moves from your eCommerce payment page to the consumer's credit card company (such as MasterCard or Visa).
After that, the credit card company sends the information to the card issuer. They compare the address given to the consumer with their on-file address.
Once that happens, the issuer authorizes the purchase. The associated AVS response code moves to your payment gateway. The payment is then verified and the customer can proceed through the checkout process.
While this sounds like an involved procedure, it really only takes a few seconds. Your customers won't even know that it's taking place. It protects your business from payment fraud at no expense to the shopper.
An AVS credit card check is essential for keeping both you and your customers safe.
People who use fraudulent or stolen credit cards likely have the capability to hack into your system and get access to your information. Many of them are skilled at installing malware and phishing. Using a stolen or fake credit card can give them access to an account on your website that they can use for theft.
Consumers also won't need to worry that people are using their credit card for fraudulent transactions on your site. Their information will be safe and only accessible by authorized users.
In addition to being quick and user-friendly, an AVS card check also is completely automated. You won't need to worry about hiring a team of fraud analysts to manually review transactions.
An AVS check should be used in tandem with other identity verification tools to determine the legitimacy of a transaction. To keep your site secure and prevent fraudulent attacks, you'll need to invest in high-quality solutions tailored to your specific industry and online presence.
Vesta's fraud solutions work to minimize the risk of fraud while still keeping your business growth steady. We utilize a variety of customer authentification methods to ensure that only legitimate transactions are approved. If for some reason we're wrong, then we own the chargeback expenses associated with the fraudulent transaction. Request a demo today to learn more about our end-to-end transaction guarantee platform.