My Merchant Account Blog

Address Verification Service Fee

Tuesday, February 15, 2011

The fee is usually 5¢ to 10¢ per tranaction.  Some merchant account providers will not charge this fee.  The fee is usually done on Internet Merchant Accounts and Telephone / Mail Order  Merchant Accounts (MOTO).  It is the merchant's first line of defense to help Prevent Online Fraud.

If this feature is not done, the transaction can be downgraded to a non-qualified rate.  Usually, if the consumer's billing address is not in the United States, the feature cannot be done.  During the transaction process, the gateway will look at some numbers.  For example, the billing address is 1234 Main St, Anywhere, CO 80124.  The gateway will verify the 1234 and 80124.

Most gateways will also support recurring billing - storing the credit card information on their server.  If this is done, Address Verification Service (AVS) will not be done, since it was done on the original transaction.  If the credit card is updated for recurring billing, (AVS is done again.

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