Credit Card Verification

Online merchants are confronted in their daily business operations with the processing of credit cards. Security issues with online credit card verification are of critical importance, and though many safeguards have been implemented, verification can still be a concern, for the safety of both the business and the customer.

As it stands today, there are two key aspects regarding credit card security for credit card processing, namely, address verification service (AVS) and card verification value (CVV). Credit card purchases can be conducted over the Internet both anonymously and securely, and the merchant should require both AVS and CVV in order to protect themselves as well. Credit card verification software and online credit card terminals are easily accessible for a reasonable price.

Address Verification Service (AVS)

The purpose of AVS is to ensure the merchant that the address provided by the consumer is associated with that credit card account. Naturally, it protects the credit card holder as well. It encourages the merchant’s confidence to know that the person giving the credit card information is indeed the proper cardholder. Although this information is not required, the transaction processor will send a response back with the purchase amount and confirmation that the address matches the one that is associated with the credit card account.

Should the address by some chance be entered incorrectly, it is the merchant’s discretion as to whether or not they accept the credit card for the purchase. You have two choices as a merchant – either deny the sale or request additional information to help verify the cardholder’s information. Naturally, if the customer made a mistake, the merchant will give them the opportunity to correct it.

Card Verification Value (CVV)

Also referred to as CVV-2, the CVV is typically a three- or four-digit number on the reverse of the credit card. This is only found on the credit card and never on the statement or any account holder information. Whenever this number is required, it is impossible to complete the transaction without it. It’s safe to assume that if the customer can enter the number when it is asked for that they have the credit card in their hand. Therefore, it follows that this increases the likelihood that the card belongs to the person who is making that purchase.

Discarded credit card receipts or statements are excellent vehicles for online credit card fraud if they are not destroyed or shredded. That type of fraud is eliminated by the merchant when they require the CVV as part of the transaction process. Should the CVV number be entered incorrectly, the purchase is declined.