What is the Address Verification System?

ad - dress ver - i - fi - ca - tion sys - tem
noun
A service used to verify a cardholder’s billing address.
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How Does the Address Verification System Work?

A system created and maintained by Visa, the Address Verification System was designed to prevent fraudulent activity by allowing a Merchant to verify whether a credit card’s given address matches the address in the Card Issuer's system. This system is especially useful in situations where a buyer and a seller do not complete their Transaction in person, but online.