Address Verification (AVS)
Matching the address that the buyer supplies at the point of transaction against the one that is registered with the card issuer is very useful in detecting possible fraud.
If a cardholder is unable to deliver the correct registered address, it could be an indication of fraud. Address checking does, however, have flaws. Specifically, the wording in the address itself is not checked but rather only the numeric characters. If a cardholder enters "Flat 1" and the bank holds "Flat One", the check will fail, even though the address is actually correct.
Address verification should be done in combination with other checks to give a clearer indication of whether a transaction is genuine.