Card Verification
Card Verification (AVS) is a useful tool for validating card information without immobilizing funds, allowing customers to retain access to their entire account balance for other purchases. This service is a process in which the acquiring/processing entity sends a message to the card issuer to determine if the account number is current. It is a zero-dollar authorization request that validates the card.
Please note that a positive response does not automatically guarantee a subsequent authorization request, as other factors such as the transaction amount come into play.
When to Use AVS?
There are different situations where AVS can be very useful. Here are some examples:
-
Adding information to a customer's profile.
A merchant can send an AVS to verify the customer's address, the card verification value (CVV), and/or check if the account is current. If the issuer rejects the AVS request, the merchant can ask the customer for another card number. This process will speed up the transaction time when processing the actual sale.
-
Merchants with guaranteed reservation services, such as hotels or car rentals.
Merchants with guaranteed reservation services can use the AVS service to validate the card used for the reservation. If the issuer rejects the AVS request, another card number can be requested from the customer. If the cardholder does not properly cancel the reservation and the merchant decides to charge a "no-show" fee, there is a higher likelihood that the charge will be successful with a previously approved AVS.
-
Merchants using multiple channels to sell their products.
Merchants offering multi-channel purchases, allowing customers to place orders online and pick them up in-store, can use an AVS to validate the card online and then charge the total payment amount to the card at the time of product pickup.
-
Recurring Payments.
A merchant with a subscription program may allow a customer to become a member with a free trial period and a monthly charge that will begin when the trial ends. During the customer's first visit, the merchant can perform an AVS to validate the card information and account. When the customer completes the trial period and agrees to continue the subscription, the merchant will send a transaction for the payment of the first installment.
The AVS service is commonly used in online transactions, but it can also be used in a physical environment.