What’s Wrong With the Gateway Error–the Transaction has Been Declined Because of an AVS mismatch

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Have you ever come across this situation when You were shopping online and making payments via credit card and you were using Authorize.net. Then you have received an error message like the one below:
gateway error: The transaction has been declined because of an AVS mismatch. The address provided does not match billing address of cardholder.

You must be in a lost what to do and want to know what this message means. Okay, today we’ll talk about the reasons why has a transaction been declined because of an AVS mismatch.

AVS, short for Address Verification Service, is a tool that checks a customer’s input name, address and card number details against a database of addresses on file with card issuing banks. AVS is not available for all countries, issuing banks and card types. For example, American Express only supports AVS in the US.

AVS is unreliable for credit card holders outside of the United States.  Please contact Authorize.net and confirm how to best configure your account to handle AVS filtering for non-US transactions. At the moment, international donors run the risk of being rejected when they register or donate because of how AVS has been configured by your organization at Authorize.net. You may need to disable AVS if you want to accept a credit card outside of the United States.

When a transaction has been declined because of an AVS mismatch,  AVS is not the problem.  You have this feature enabled in your Authorize.net configuration.  As explained above, this feature is a security filter, and certain transactions are accepted/rejected based on address matching settings and options that someone in your organization has enabled and configured for your Authnet.net payment processing.

You can use Authorize.net for non-U.S. customers. To do so, the your bank account must be with a financial institution located in the United States, and the your Admin Area must be configured to accept the customer’s card type: Visa, MasterCard, American Express, or Discover. Authorize.net submits the transaction amount to the customer’s card issuer, who then handles all currency conversion to U.S. dollars. Since default Address Verification Service (AVS) settings may cause foreign transactions to be declined, if you plan to regularly accept international transactions, make sure that your AVS settings are configured accordingly.

To be added,

As for most online merchants, using AVS can hurt their conversion rates in two main ways.

1. If AVS rules are set to reject all transactions that do not match both street address and zip code, legitimate sales may be lost from customers who do not understand that the billing address needs to match the address that their credit card statement is mailed to.
2. The more troublesome problem with AVS occurs when a customer has recently moved. Customers should know even if they update billing address with credit card company after they move, it can take up to 6 months or longer for them to update the AVS database with new information (even though they make sure that the bill arrives at the right address!)

The worst part about this delay is that often customers will blame the merchant if their card gets rejected for this reason. If their credit card bill arrives at the right address, they assume that their credit card company updated their information. When a card that they know should work gets rejected by your website, they often become angry with you, not their card provider!

To both customers’ and online merchants’ benefits, I think an adequate use of AVS rules is good. When this situation does happen, the two parties should work together and handle this issue in peace. After all, it is all for the goods of both sides.

For Customers, please check the consistence of the given information, or call the card provider, or email to online merchant for help.

For online merchant, see into these seemingly issues separately and carefully, try to figure out alternative better solutions for your customer.

By Sophia.MuchBuy

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4 Responses to What’s Wrong With the Gateway Error–the Transaction has Been Declined Because of an AVS mismatch

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