Card-Not-Present Transactions and
Address Verification Service
Card-Not-Present transactions include mail, telephone, and electronic commerce transactions. Card-Not-Present
Transactions have a substantially higher risk of chargeback. Since cards are not imprinted or magnetically swiped
and the cardholder’s signature is not obtained on the sales draft, the merchant assumes all risk associated with
card-not-present transactions.
The following procedures are required by the Payment Networks and BB&T Merchant clients must follow these
procedures and comply with these requirements. The following may also be useful in reducing chargebacks in a
card-not-present processing environment:
•
All card-not-present transactions must be electronically authorized. An authorization should be seen as an
indication that account funds are available and the card has not been reported lost or stolen. Successful
authorization is not proof that the true cardholder engaged in the transaction. A declined authorization
response always takes precedence over AVS. Do not accept any transaction that has been declined,
regardless of the AVS response.
Merchants must perform electronic address verification service (AVS) to verify Cardholder’s billing address
including street and ZIP code from the Payment Network for telephone, mail order, or e-commerce
transactions. Failure to do so may result in increased interchange fees and additional chargeback exposure.
AVS is a separate process from obtaining an authorization and will provide a separate response. This service is
designed to assist merchants in reducing the risk of fraud by confirming whether certain elements of the
billing address provided during a card-not-present transaction match the billing address maintained by the
issuing bank. It is the merchant’s responsibility to monitor the AVS responses and use the information
provided to avoid high risk transactions. If the AVS does not match and the merchant decides to not
proceed with the transaction, the authorized transaction must be voided or reversed.
Response Code
X
Y
A
Z
N
U
R
S
G
W
E
Description
Exact Match Address and nine-digit zip code match. Complete the transaction; you can
be relatively confident it is legitimate.
Match Both street address and five-digit zip code match. Complete the transaction;
you can be relatively confident it is legitimate.
Partial Match Street address matches, but zip code doesn’t. View as a sign of potential
fraud. Depending on the transaction amount, you may decide to complete the
transaction or investigate further to ensure it is valid.
Partial Match Zip code matches but the street address doesn’t. View as a sign of
potential fraud. Depending on the transaction amount, you may decide to complete
the transaction or investigate further to ensure it is valid.
No Match Street address and zip code don’t match. View as a sign of potential fraud
and take further steps to validate the transaction.
Unavailable The Issuer’s system is not available, or the Issuer does not support AVS.
The address cannot be verified at present. You must decide whether to accept or
refuse the transaction, or investigate further.
Retry The Issuer’s system is not available; try again later. The Issuer’s system may not
be working. You should resubmit your AVS request later.
Service not supported.
Non-U.S. Issuer – Does not participate.
Nine-character numeric ZIP match only.
Not a mail/phone order.
•
lize Visa Cardholder Verifi
Value 2 (CVV2), MasterCard Card Valid on Code 2 (CVC2), or Discover
Card
a
(CID). CVV2/CVC2/CID is a three-digit number imprinted on the signature panel of Visa,
to help card-not-present merchants verify that the
MasterCard, or Discover Network Cards, r
customer has a
card in hand at the me of the order. Discover Network Rules specifically require
on request for all card-not-present transac
. The
that merchants submit the CID with the
merchant asks the customer for the CVV2, CVC2 or CID code and then sends it to the card issuer as part of the
on request. The card issuer checks the CVV2, CVC2 or CID code to determine its validity, and then
sends a CVV2, CVC2 or CID result back to the merchant along with the authori on. CVV2 is required on all
Visa Cards.
•
Merchant must transmit a purchase order (PO) and invoice number as part of the authori on. Terminal
prompts should never be bypassed; a unique value for each tr
n must be entered at the prompts even
if PO or invoice numbers are not used. Failure to do so may result in increased interchange fees.
•
the cardholder of shipping date (or delivery me frames), special handling, or
Merchant must
policies. Disclosure of these me frames or policies does not prevent the cardholder from
ng the
BB&T Merchant Services are subject to business type and credit approval.