What does the Address Verification Service (AVS) assist merchants with?

The Address Verification Service (AVS) is a crucial tool designed to enhance the security of card transactions. Its primary function is to confirm the cardholder's billing address during a transaction. By comparing the address provided by the customer with the one on file with the card issuer, AVS helps merchants mitigate the risk of fraud. When the addresses match, it adds a layer of confidence that the person making the purchase is indeed the legitimate cardholder, thereby preventing unauthorized use of credit and debit cards.

Understanding the importance of address verification highlights the need for security in electronic transactions. Other options either do not relate directly to verifying transaction security or serve different functions. For example, verifying cardholder identity for refunds does not involve address verification in the same way, and tracking customer purchase history or managing account balances focuses more on customer relationship management rather than on securing transactions.