Fraud Prevention Knowledge Guide

Address Verification Service

  1. Articles
  2. Fraud Prevention
  3. Address Verification Service
  4. Benefits of AVS
Address Verification Service

Knowledge Guide Chapters

  1. What is the Address Verification Service (AVS)?
  2. How Does an AVS Check Work?
  3. AVS Response Codes
  4. Benefits of AVS
  5. Limitations of AVS
  6. AVS Best Practices
  7. Why AVS Checks Fail
  8. AVS & Chargeback Liability
  9. AVS Implementation

Benefits of AVSAddress Verification: The Oldest Trick in the Fraud Prevention Book

Harlan Hutson | August 11, 2025 | 2 min read
Benefits of AVS

Benefits of Using the Address Verification Service

Given how rapidly fraud evolves, it’s easy to get fixated on the latest and greatest eCommerce fraud prevention tools.

Don’t get me wrong: emerging technologies like machine learning-based fraud prevention systems or biometric authentication can help you neutralize threats. But, so can staples that have stood the test of time.

AVS is a foundational pillar of card-not-present (CNP) fraud prevention for a reason: it’s simple, it’s effective, and it works. In this chapter, we’ll explore the core benefits that have made AVS an important part of the eCommerce security toolkit since the early days of online shopping.

The Pros of Using AVS

The most obvious benefit to using AVS is that it helps you stop CNP fraud. But not all fraud prevention tools are created equal. Here’s what sets AVS apart:

Real-Time Verification

AVS operates in real-time. In other words, the address verification check happens instantaneously the moment a customer checks out. This immediate feedback loop allows you to approve good orders and flag suspicious ones before the transaction is even finalized. Plus, your customers get to benefit from a smooth, efficient, and secure shopping experience.

Low Cost

AVS is often included as part of your standard payment processing fees. It’s essentially a built-in security feature that costs you little extra (typically less than $0.05 per transaction). The minimal additional expense for AVS pales in comparison to the negative impact of a single fraudulent transaction, which can result in lost inventory, lost revenue, unrecoverable shipping costs, and chargeback fees.

Easy to Implement

If you’re using a common eCommerce platform or payment gateway, enabling AVS is often as simple as checking a box in your account settings. There's usually no complex coding required, no lengthy integration process, and no need to hire outside specialists. This means you can activate a powerful layer of fraud protection quickly while minimizing technical overhead.

Reduces Obvious Fraud Attempts

AVS acts as a powerful first line of defense against easy-to-deter forms of CNP fraud, like attacks involving simple theft. This deters amateur fraudsters from doing harm to your business and saves you time and resources that would otherwise be spent reviewing clearly fraudulent orders. It’s an easy way to clear out the low-hanging fruit.

No Customer Friction When It Works

One major advantage of AVS is that when it works correctly — which it does almost all of the time — it’s completely invisible to customers. Buyers enter their billing addresses, the AVS check happens in seconds behind the scenes, and if a successful match occurs, the buyer proceeds with their purchase without knowing a security check even happened. This lack of additional friction preserves conversions and ensures that your fraud prevention efforts don’t inadvertently chase away genuine customers.

Next Chapter

Limitations of AVS

We’ll run the numbers; You’ll see the savings.
triangle shape background particle triangle shape background particle triangle shape background particle
Please share a few details and we'll connect with you!
Revenue Recovery icon
Over 18,000 companies recovered revenue with products from Chargebacks911
Close Form