The Address Verification System (AVS) is a system when connecting to your customers issuing bank through your MSP’s processor, is able to verify whether the street address and Zip code entered by your customer is the same as the street address and Zip code that the customer’s issuing bank has on file.
AVS is a standardized system among the credit card companies with a fixed set of responses documented, where merchants have the ability to specify which AVS responses they wish to accept and which AVS responses they wish to decline.
AVS responses often relate to the rate you will pay your Acquiring Bank for processing your transactions, as well as your potential liability in the case of charge backs. For details on rates and charge backs, please refer to your original Merchant Account Agreement or contact your Merchant Service Provider.
Keep in mind that the AVS system currently offered by the credit card companies only verifies street address and Zip codes of cards issued by U.S.-based banks, and that the standard response returned by the credit card companies for non-U.S. issued cards is Non AVS Participant Outside of U.S.