Advanced Address Verification (AAV) - Fraud Library

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Advanced Address Verification (AAV) is used to validate the shipping address of American Express orders in which the shipping address is different from the billing address.

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Advanced Address Verification (AAV) is used to validate the shipping address of American Express orders in which the shipping address is different from the billing address.

How Good Is It? 

• AAV+ is a real-time solution for merchants doing e-commerce, mail order or phone orders. AAV+ is not the same as AVS. AVS is checking the billing address on file with the Issuing Bank, AAV+ is checking the shipping address. The service is provided exclusively by American Express and is intended to check the billing and shipping address when the two addresses are different. This service does offer an optional guarantee.          

  • Allows a merchant to take orders that may have been deemed too risky before.
  • Reduces the costs for manual reviews in which the transaction is from American Express and a merchant has done the AAV+ check.
  • Covers a merchant’s charge-backs on American Express transactions run through the service.

Considerations When Implementing or Buying This Functionality  

• It only works for American Express transactions.
• If a merchant doesn’t have a direct connection to American Express, they need to make sure their payment processor can handle the new data fields required for this service.
• It does not guarantee customer service charge-backs, only fraudulent charge-backs.

Estimated Costs – There are different fees for using the service and getting the charge-back guarantee.

Alternative Solutions – Many vendors provide address verification services ranging from delivery address verification to full verification based on credit bureau and government record checks.

Vendors – American Express.

How Does it Work? 

To use the service a merchant needs to make sure their payment processor supports the new service. If a merchant has a direct connection to American Expressthey can immediately start looking at how to implement this solution.

Once a merchant has decided to implement the AAV+ solution they will have to notify American Expressto get a copy of the AAV+ specifications. American Express will conduct a walkthrough of the specifications if they desire it.

With the specifications a merchant can begin to modify their authorization format. Once a merchant has made the modifications, American Expresswill have to certify their format and review their ordering system script, and/or checkout page, for their website. Then a merchant can begin to send orders.

With AAV+ a merchant will be sending the following new data in their authorization feed: 

Card member Billing Information:

Card member Billing Address, Zip code and Phone Number

Card member Name as it appears on the card 

Alternate Address Information:

Ship to Street Address, Zip Code and Phone Number

Ship to First and Last Name

Ship to Country Code (ISO Numeric)

Email and IP address

How Do I Use the Results? 

A merchant will get a response from American Express indicating if the data was a match. If it is and a merchant has purchased the guarantee, they can immediately accept the order. If they don’t have the guarantee then they have to decide on the order. If it is a match on the name, phone and address, the merchant’s risk is greatly reduced.

Building This In-House 

A merchant can purchase data volumes that give them yellow page-type information that they can do checks against.

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