Nowadays, many retail stores and online shops approve credit card payments of customers while purchasing a product. However, some of them may face chargeback issues that affect their business in the markets to a large extent. Businesses should know how to prevent chargebacks from different sources that will help reduce losses. Apart from that, it will help boost sales that give ways to generate more revenues. A chargeback fraud mostly happens in online shopping when a customer asks a credit card issuing company or bank to refund amounts for a certain purchase which often results in disputes.
What is AVS?
Address verification service, shortly known as AVS, is a tool meant for protecting credit card fraud including chargebacks. It is an automated program that helps to verify the billing address of customers used in credit card transactions. Moreover, the service allows a business to validate the information available on the bank file that gives ways to minimize unwanted problems. It offers solutions for reducing fraudulent activities such as hacking, identity thefts, etc. Another thing is that businesses can lower interchange fees with this facility that will help reduce expenses.
How does AVS prevent chargeback fraud?
AVS is ideal for online stores to prevent chargeback fraud effectively that will help grow business with high success rates. It adds a layer of authentication to the chargeback issue by addressing essential needs. The card issuing companies use different types of AVS codes for address verification purposes, Merchants can apply them to determine how to move further with a given transaction. This, in turn, gives ways to prevent a chargeback fraud that will help get peace of mind. A merchant can know the status of card transactions after cross checking the details of customers with AVS codes.
Is AVS a complete solution for chargeback fraud?
AVS is not a complete solution for chargeback fraud due to the ambiguity of codes and lack of global support. Therefore, businesses should consider implementing an end-to-end solution with a combination of other powerful fraud mechanisms. Some of them include biometric analysis, IP address verification, device fingerprinting, 3D secure, CVV, etc. This will help ensure high protection from chargeback fraud enabling a business to plan smooth operations accordingly. AVS will decline a transaction when a person misuses a card for online purchases. It serves as a match for merchants while shipping a product to a customer.
Do all banks support AVS?
Most banks in the US support AVS services for merchants when they want to verify the legitimacy of customer purchases. On the other hand, it is necessary to know more about the process in detail that will help protect a business from high interchange fees and other issues significantly. Businesses should also understand the reasons for chargeback in detail and take precautionary measures against them with powerful tools. AVS is one such tool that allows merchants to decrease the chargeback by integrating policies and processes properly. Apart from that, it makes feasible methods to maximize revenues in a business by stopping fraudulent activities.