Key Takeways: AVS and Gift Cards
- Gift cards are prepaid and usually don’t carry a real billing address, so standard AVS address matches can misfire.
- AVS is still your first fraud filter, but overly strict rules will spike false declines on gift-card transactions.
- Loosen AVS checks for low-value or gift-card payments—e.g., accept ZIP-only matches or rely on CVV and velocity rules instead.
- Invite customers to register their gift card with an address to improve match rates and keep fraud at bay.
- The sweet spot is balancing user-friendly checkout with targeted AVS filters so good sales sail through while bad actors get blocked.
Gift Cards & AVS Settings
Striking the right balance between security and a positive user experience while configuring Address Verification System (AVS) settings to accept gift cards is key to making sure payments are processed smoothly while keeping the bad players at bay. Let’s talk a little bit about what makes gift cards tick and how AVS settings play into the mix.
Gift Cards: The Lowdown
As we’ve all experienced ourselves, gift cards are like the crowd-pleasers of the payment world – prepaid, ready to go, and perfect for gifts or just treating yourself. If you’re a business accepting these handy cards, here’s what you need to know:
- Activate and Go: You'll need to activate these cards when they're bought and then keep track of how much gets spent with each swipe (or tap).
- Keep Tabs on the Tab: After a purchase, letting folks know how much is left on their card is a nice touch. So, you'll want a system that makes checking balances a breeze.
- Less Worry About Fraud (Most of the Time): Since gift cards are prepaid, the usual fraud concerns are a bit different. The main focus is on ensuring the initial loading and activation are secure.
AVS Settings: Your Fraud-Busting Friend
AVS is all about making sure the address your customer punches in matches up with what their credit card company has on file. It’s a smart move for dodging fraud, especially for online or over-the-phone sales. Here’s the scoop:
- Cutting Down on Fraud: AVS helps you spot and stop dodgy transactions by checking if the billing addresses match up.
- Tweak your AVS Settings: You can adjust your AVS filters to find the sweet spot between being secure and not turning away good customers over minor mismatches.
- A Small Price for Peace of Mind: While using AVS might add a bit to your costs, it's generally seen as a worthwhile investment for the fraud protection it offers.
When Gift Cards Meet AVS
Mixing gift cards with AVS can get a bit tricky:
- Address Who? Gift cards don't always come tied to a specific address, and even if they are, the person using it might not know what address was used. This can lead to more declines if your AVS settings are too strict.
- Finding the Balance: To keep gift card users happy and still protect against fraud, you might loosen up those AVS settings a bit for smaller transactions or look for other ways to verify these purchases.
- A Little Nudge for Customers: Encouraging folks to register their gift cards with their address can help cut down on checkout hiccups, making everyone's life a bit easier.
So, in 2024, striking the right balance with your AVS settings to welcome gift card transactions without inviting fraud is more of an art than a science. It’s all about tweaking those settings, educating your customers, and finding that sweet spot where everyone, from card users to business owners, can feel secure and satisfied.
