Address Verification System (AVS) disparity occurs when the address information provided during a transaction does not match the address on file with the cardholder’s issuing bank. This discrepancy often involves the numerical street address and postal code. For instance, if a customer enters “123 Main Street” with a postal code of “90210” but the card issuer has “123 Main St.” and “90211” on record, the system will flag this difference.
Identifying and addressing this divergence is a crucial step in mitigating fraudulent transactions. Financial institutions and merchants use AVS to confirm the cardholder’s identity and authorization. By comparing provided details with verified data, entities can reduce the risk of accepting unauthorized payments, thereby decreasing financial losses associated with chargebacks and fraud. The implementation of such checks has become standard practice over time, refining security measures within the financial services landscape.
