AVS CV2
Address Verification Service (AVS) and Card Verification Value (CV2)
What is AVS and CV2?
The banking industry introduced AVS and CV2 to help combat the growing problems with verifying the shopper during a CNP transaction (Cardholder Not Present).
AVS and CV2 checking is an electronic notification service that is provided by most card issuers. The AVS and CV2 can be carried out on all ecommerce and Mail Order/Telephone Order transactions placed through your Sage Pay account.
The aim of these security checks is to provide additional information on each transaction which arms you, the vendor, with information to reduce the risk of fraudulent transactions.
What are the benefits and limitations?
Benefits
Quick Results: AVS and CV2 are carried out in real-time, so you receive the results at the same time as the authorisation result.
AVS and CV2 provide more information about the transaction: AVS and CV2 provide you with more information about the transaction so that you can quickly decide whether or not you need to carry out any further fraud screening checks.
Failed AVS and CV2 are early fraud indicators: A failed or partially failed AVS and CV2 result is often an early indication that the order may be fraudulent which can save you from carrying out longer manual checks.
Detailed responses limit errors: Sage Pay break down the results of AVS and CV2 into three categories to cut down on the number of failed results due to customer error.
Automatic fraud screening: You can set up a rule base on your Sage Pay account to automatically accept or reject transactions based on the results of the AVS and CV2 checks to avoid repetition and to save you from manually checking the results of every transaction.
AVS/CV2 supported on American Express transactions: Now AVS/CV2 responses are returned for AMEX transactions and passed through you Sage Pay Rulebase you set up on your account.
Limitations
AVS is a UK scheme only: It is not possible to check AVS on overseas orders, so you should expect your overseas orders to return with a 'CV2 result Only' result.
Only the numerics of the AVS are checked: The non-numerical characters in the billing address and post code are not checked as part of the AVS checks. This means that it is possible to receive a false negative result if a shopper does not enter a house number, i.e. The shopper has entered a house name.
Unable to check AVS/CV2 on company cards: If you accept company credit cards, it may be that the results you receive for the AVS/CV2 is 'DATA NOT CHECKED'. This may be because the banks do not have access to this specific information in order to check it.
AVS is not separated when referencing the AVS/CV2 rule base: The Address and Post Code values are treated as one entity when referring to the AVS/CV2 rule base. So if either the Address or Post Code returns a not-matched response it fails the complete AVS value.
How does AVS work and where can I find the CV2 number?
The Address Verification Service checks the shopper's address and postcode, as entered at the point of order. The numeric data (billing house/flat number and numerics in the postcode) of the shopper's billing address and postcode is checked against the details of the card issuer. A successful AVS result shows that the person ordering knows the shopper's registered address. This is a good indication that they are the true cardholder and by only delivering to the billing address you will further deter potential fraudsters.
The CV2 value (also known as: CVV/security number) is the last 3 digits of the number on the signature strip on the back of all debit and credit cards including JCB, Diners club and Laser cards. Amex cards differ and have a 4 digit number on the front of the card. In order to enter the correct number, the person placing the transaction must either be in possession of the card, or must have made a note of the CV2 number whilst handling the card.
You can see from these images how the CV2 number would appear on a credit/debit card and Amex.