What Is an AVS Failure and How Do You Fix It?

An AVS failure occurs when a credit or debit card transaction is declined because the billing address provided by the customer does not match the address on file with their card-issuing bank. This commonly happens in “card-not-present” transactions, such as online purchases or phone orders. The Address Verification System (AVS) serves as a security measure, helping to prevent credit card fraud by verifying the cardholder’s identity. When an AVS mismatch occurs, it can lead to immediate transaction declines, which can be frustrating for consumers and result in lost sales for merchants.

Understanding AVS

The Address Verification System (AVS) is a tool used by merchants and card issuers to combat credit card fraud, especially in “card-not-present” situations. Its purpose is to verify the cardholder’s identity by comparing the billing address entered by the customer with the address the card issuer has on file.

The merchant’s payment processor sends the customer’s provided billing address to the card issuer. The card issuer checks this information against its records and sends back a response code. This code indicates the level of match, such as a full match, partial match, or no match. Merchants use these codes to decide whether to proceed with or decline the transaction.

Reasons for AVS Failure

AVS checks can fail due to discrepancies between the information provided and what the card issuer has on record. Common causes include typographical errors or data entry mistakes made by the customer during checkout. Even a minor misspelling, incorrect street number, or inaccurate zip code can trigger a mismatch.

Outdated information is another frequent reason for AVS failure. A customer may have recently moved or changed their address but has not updated this information with their bank or card issuer. This means the address entered for the transaction will not align with the address stored by the financial institution, leading to a decline.

Issues with the bank or card issuer can also contribute to AVS failures. This includes temporary system glitches or, in some cases, the bank not fully supporting AVS for certain card types. If the card issuer’s system cannot process the AVS request, it results in a non-match response.

Partial matches can also cause AVS failures, even if some elements are correct. For instance, the street number might match, but the zip code may not. While some merchant systems may accept certain partial matches, a strict AVS setting will decline such transactions.

International address formatting presents a challenge for AVS, as it is primarily designed for addresses in the United States, Canada, and the United Kingdom. Different countries have varying address structures and postal code systems, which can lead to verification difficulties for cross-border transactions. Some AVS systems may also flag P.O. Box addresses or require a physical street address, causing issues if a customer uses a P.O. Box as their billing address.

How to Resolve AVS Failures

When encountering an AVS failure, a primary step is to meticulously double-check the billing information entered during the transaction. Ensure that the billing address precisely matches what your bank or card issuer has on file, including street type abbreviations, apartment or suite numbers, and the complete zip code. Even minor discrepancies can lead to a decline.

If the information appears correct, contact your bank or card issuer directly. You can confirm the exact billing address they have on record and request an update if needed. This call also provides an opportunity to inquire about any specific issues with your card or account that might be preventing successful AVS verification.

Trying an alternative payment method can sometimes resolve the issue. Using a different credit or debit card, or opting for a service like a digital wallet or online payment platform, may bypass the specific AVS challenge. These alternative methods often have their own verification processes, which might not be subject to the same AVS rules.

Reaching out to the merchant’s customer service department is also advisable. They may be able to manually verify your order, offer an alternative processing method, or confirm if they are experiencing system-wide issues that are affecting AVS checks. In some instances, temporary system glitches can cause AVS failures that resolve themselves after a short period.

Finally, it is important to regularly update your personal and billing information with all your financial institutions. Keeping addresses current with banks and card issuers can prevent future AVS-related transaction declines and ensure smoother processing of payments.