Address Verification Service (AVS)

Address Verification Service (AVS) is a fraud prevention tool used in card-not-present (CNP) transactions, primarily for online and phone payments. It helps verify that the billing address provided by the cardholder matches the address on file with the issuing bank. This service is commonly used in the U.S., Canada, and the U.K.

Paysafe currently implements Strict and Flexible AVS policies across its payment platform to ensure maximum fraud prevention and compliance with card network regulations.

When Strict AVS (Address Verification System) is enabled, providing complete and accurate billing details (ZIP/postal code) is a mandatory requirement for processing an authorization request. If these details are missing, the transaction will be automatically declined before it is even sent to the card network for approval.

This setting is useful for merchants who want to enforce a high level of security and reduce the risk of fraudulent transactions. However, it may also lead to increased decline rates if customers enter incorrect or incomplete billing information at checkout.

With Flexible AVS, billing details are not mandatory for an authorization request to be processed. If AVS is enabled but the required billing details (such as the address or ZIP/postal code) are missing, the authorization will still proceed and can be approved by the card issuer.

This setting provides greater flexibility, helping merchants reduce unnecessary transaction declines due to missing or mismatched billing information. However, it is important to note that omitting AVS details may result in higher processing fees, potential transaction downgrades, or additional risk exposure depending on card network policies.

Enforced AVS is a security feature designed to automatically decline and reverse an authorization if the AVS check returns a "No Match" result. This means that if the billing address or ZIP/postal code provided by the customer does not match the details on file with the card issuer, the transaction will be immediately voided, preventing it from settling.

For this service to function correctly, billing details must always be provided with the authorization request. If the required address information is missing, the transaction may not be processed as expected. Enforcing AVS helps merchants minimize fraud risk and chargebacks, but it may also lead to higher decline rates if customers enter incorrect billing information.

Paysafe offers multiple ways to configure the Address Verification Service (AVS) to align with your business needs. Proper setup is essential to ensure seamless transactions while balancing security and authorization success rates.

To ensure that AVS is configured correctly for your specific requirements, we strongly recommend reaching out to Integration Support for guidance. Below, we outline the different AVS configurations, the possible transaction scenarios, and their expected outcomes. Understanding these options will help you optimize your AVS settings and minimize unnecessary declines or processing issues.