Verification mechanisms

Verification mechanisms are crucial components in ensuring the security and authenticity of transactions.

These verification mechanisms collectively contribute to a robust and secure payment ecosystem, safeguarding transactions and reducing the risk of fraudulent activities. The adoption of multiple layers of verification enhances the overall security posture and ensures a trustworthy payment experience for both merchants and cardholders.

This guide discusses several key verification methods employed in the payment industry.

Address Verification Service (AVS)

Address Verification Service (AVS) is a security feature that compares the billing address provided during a transaction with the address on file with the card issuer. It helps authenticate the cardholder by confirming the accuracy of the address information, adding an extra layer of protection against unauthorized transactions.

How AVS works

For Mastercard and Visa, once we receive an AVS request, Banking.Live will verify internally the address and postal code with the values stored in the backend.

Banking.Live then sends the verification result to you in certain bit position(s) of txn_check_applied and txn_check_result within the SUMMARY node of the FAST message.

• Bit 20 of txn_check_result is set if address mismatches.
• Bit 21 of txn_check_result is set if postal code mismatches.
• Bit 23 of txn_check_result is set if both address and postal code mismatches.

The AVS verification response code result is sent in the Authorization Request Response/0110 message back to the relevant card scheme.

• Mastercard code result DE48.83
• Visa code result DE 44.2

In the case of AVS verification failure the transaction will be declined with response code 57.

In the case you want to approve an AVS verification failure then the token flag “Sets card to approve if AVS match fails” must have been enabled prior to the transaction.

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You can read more on token flags here.

Previous authorization/ASI in place of CVV

Some systems may utilize the information from a previous authorization or an Account Status Inquiry (ASI) as an alternative to traditional CVV verification.

This method leverages the data from a recent transaction or account inquiry to validate the legitimacy of subsequent transactions.

Account Name Inquiry (ANI)

Account Name Inquiry (ANI) is a verification mechanism that checks the name associated with the account to ensure alignment with the provided information. Verifying the account name adds an extra layer of authentication, especially in situations where confirming the identity of the account holder is critical.