Why You Should Use an Address Verification System

Any business which accepts credit and debit cards should use an address verification system during payment processing. Read on to learn why.

Many businesses accept what are called card-not-present transactions. These are transactions in which neither the cards nor the cardholders are present. An example of this would be a charge made over the phone. Card-not-present transactions have a higher rate of fraud than face to face transactions. The merchants accept financial liability for these transactions when they prove to be fraudulent. This means that the dollar amount of these transactions can be charged back to merchant accounts. These are called chargebacks. The additional costs of chargebacks to merchants include the costs of processing the transactions as well as the cost of the merchandise lost.

Billing addresses associated with credit and debit cards are very important in reducing the number of fraudulent card-not-present transactions because criminals using these cards don’t usually know the billing addresses associated with the cards. A card may be lost or stolen, or the card number may have been copied from a sales receipt. In either case, a business using an address verification system can stop a fraudulent transaction because the criminal doesn’t have the address affiliated with the card account.

An address verification system can do more for a business than reduce its number of chargebacks. It can also improve the business’s image with its customers. For example, say a loyal customer loses a charge card, and someone other than the cardholder attempts to use it. Use of the address verification system keeps the merchant from processing that transaction. The loyal customer is grateful, and maybe even more loyal than before.

In addition, address verification systems are fast. They allow merchants to process authorization requests in real time. They are also easy to use. All the merchant needs to do is enter the customer’s address and zip code. In a few seconds, the merchant has all the necessary information to make an informed decision regarding whether to accept the card or not.

The first address verification system was created in 1990 in response to requests from the direct marketing and airline industries. These industries needed a solution to fraudulent card-not-present transactions, such as catalog orders or purchasing tickets by mail. Since then, address verification systems have become an indispensable part of payment processing for most businesses. An address verification system should be seen as a must for any business that handles card-not-present transactions.

Leave a Reply



It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.