Overview
Address Verification Settings (AVS) are used by merchants to confirm the billing address provided by a customer to see if it matches what the card issuer has on file. AVS helps identify suspicious transactions and reduce the risk of fraud, especially in card-not-present environments like e-commerce. By configuring AVS settings appropriately, merchants can improve fraud detection while still allowing valid transactions to go through. This guide explains how AVS works, how to fine-tune settings for different risk levels, and what outcomes to expect depending on the AVS response.
Navigating to Address Verification Settings
In the Merchant Portal, on the left side panel, click on Options → Settings → Address Verification.
Address Verification Settings (AVS)
What Is AVS?
AVS is a security feature that compares the billing address (Street Address and Zip Code) provided by the cardholder against what the card issuer has on file. A strong AVS match increases the likelihood that the transaction is being conducted by the actual cardholder.
How AVS Works
- A transaction is processed.
- The issuing bank responds with an AVS status.
- Based on the merchant’s AVS rules, the gateway may reject the transaction.
How to Enable AVS Settings
- Navigate to Options > Settings > Address Verification.
- Check the box next to each rule you want to enable. (You can select multiple rules)
- Click Save to apply your changes.
- If you have more than one processor, use the Processor dropdown to add rules for each one
- You can also add rules for Non-US International credit cards.
When to Reject a Transaction
The merchant can configure their payment gateway to reject transactions based on how the rules are set up. Here’s how the settings work:
Reject the Transaction If the Street Address Matches and...
You can reject a transaction even when the street address matches, based on how the ZIP code compares:
- Y – First 5 digits of ZIP code match
- A – First 5 digits of ZIP code do NOT match
Reject the Transaction If the Street Address Does NOT Match and...
You can also reject transactions when the street address fails to match, based on these ZIP code results:
- W – 9 digits of ZIP code match
- Z – First 5 digits of ZIP code match
- N – First 5 digits of ZIP code do NOT match
Support for U.S. and Non-U.S. Transactions
At the top of the configuration screen, you can toggle between:
- US Domestic
- Non-US International
In addition to configuring AVS for U.S. transactions, you can also define rules for Non-U.S. International transactions. This allows you to tailor AVS rejection behavior for international cards, which may have different address verification capabilities.
Support for Multiple Processors
If the merchant has more than one payment processor, they will see a processor dropdown at the top of the AVS configuration screen. It’s important to configure AVS rules for each processor separately. The rules you apply to one processor will not automatically carry over to others. Be sure to review and set the appropriate AVS criteria under each processor to ensure consistent fraud prevention across all your payments.
Other AVS-Related Conditions You Can Block
In addition to mismatches, the merchant can choose to reject transactions based on the following scenarios:
- B: Address information not provided for AVS check
- E: AVS error
- G: Non-U.S. card issuing bank
- R: Retry due to system unavailability
- S: AVS not supported by card issuing bank
- U: Address info for the cardholder is unavailable
You also have the option to:
-
Only require a match on the first transaction — helpful for repeat billing scenarios.
This means that the system will perform a verification check only during the initial transaction. If that first transaction passes a valid match with the bank (approved transaction), future transactions using the same payment method will not require additional verification
AVS Responses and Current Rules
The bottom section shows a breakdown of how your current settings handle each AVS response:
- Green check (✔) — Transaction will be allowed
- Blue box — Blocked by U.S. Domestic rules
- Yellow shield — Blocked by Non-U.S. International rules
- Red shield — Blocked in both U.S. and International transactions
Show History
Every time a change is made to the AVS configuration, the system logs it in the History section at the bottom of the Address Verification page. This audit trail helps you keep track of updates for compliance, troubleshooting, and operational visibility.
What the History Section Includes:
- Timestamp – The exact date and time the change was made.
- User – The username of the person who made the change, helping you identify who adjusted the settings.
- Rules Added – AVS response codes that were enabled.
- Rules Removed – AVS response codes that were disabled.
Additional AVS Details
- AVS rules apply to eCommerce and MOTO (Mail Order/Telephone Order) transactions.
- They do not apply to Retail, credits, or offline transactions.
- U.S. rules apply by default if the country isn’t passed via API.
Processor-Level Considerations
- Even if AVS/CVV rules reject a transaction, authorization may still occur.
- Rejected transactions are voided or reversed by the gateway.
Frequently Asked Questions
Does AVS work internationally?
AVS is most commonly supported in the U.S., Canada, and the U.K. Some international issuers may not support AVS, in which case you’ll receive a result like U (unavailable).
Does AVS guarantee a fraud-free transaction?
AVS is one layer of defense, not a guarantee. A successful AVS match doesn’t mean the transaction is safe, and a mismatch doesn’t automatically mean fraud. It should be used alongside other fraud tools.
What happens when a transaction is declined due to AVS settings?
The transaction will be declined, and in the Transaction Detail, the message will display "AVS REJECTED."