In the context of AVS responses, what does 'N' signify?

In the context of Address Verification Service (AVS) responses, the designation of 'N' signifies that there was "No match found" between the address provided by the cardholder and the address on file at the card issuer. This response indicates that the street address does not correspond to what the issuing bank has on record, which raises potential concerns about the legitimacy of the transaction but does not alone determine any fraudulent activity.

Understanding AVS responses is crucial for payment processing because they help merchants mitigate risk related to credit card fraud. An 'N' response should alert a merchant to take a closer look at the transaction, as it may point to a mismatch that requires further scrutiny or additional verification steps before proceeding with the sale. This enhances the security measures for both the merchant and the consumer.

Other options represent different scenarios: 'B' indicates that information is unavailable, which could suggest a temporary issue but does not provide a definitive validation result. 'C' refers to a partial match, meaning some components of the address did match, although not enough to confirm it fully. 'D' signifies that an exact match was confirmed, reassuring the merchant that the transaction information aligns with the card issuer’s records. Understanding these distinctions is essential for effective fraud management and decision