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What is an Address Verification System?

ad - dress  ver - i - fi - ca - tion  sys - tem
noun  

Similar to Address Verification Services, Address Verification System is designed to prevent fraudulent activity by allowing a mechant to  verify the legitimacy of the transaction by confirming the accuracy of the billing address provided by a cardholder during a transaction, adding an additional layer of security to prevent fraudulent or unauthorized card use.

How Does an Address Verification System Work?

The Address Verification System allows merchants to automatically check whether a credit card used by a shopper has an address corresponding to the address in the issuer's system so that fraud can be prevented. In cases where the buyer and the merchant are not completing their transactions in person but only electronically, this system is particularly helpful.