To Decline AVS Mismatches or NOT?

MerchantProcessingNMCredit Card Processing/ Merchant Services0 Comments

Do you ever wonder if it is a good idea or not to decline cards online which do not have an address match? The question is if you decline the card, will you miss real business. Or will you save yourself money reducing chargebacks? Well one of our customers has shared the data from their company. They do inflatable party rentals.

We changed to require address verification earlier this year and you and I had discussed the potential impact that this could have on our business. I appreciate your cautioning in this and we marched forward better understanding the risks.”

We have pulled some data from October to November and I thought I’d share that data with you if you’d like to use it in a way to present to your users or for your own knowledge (personally, I’m a data junkie).

The data from the period showed:

  • We had 993 in the period
  • We had 263 Declined charges
  • Of those 263 declined charges, only 5 abandoned the ordering process. Some chose different cards. Some must have corrected the piece of data (address, zip, card number, etc.) We are unable to see what the changes were, but all but 5 seemed to be resolved. This is a 0.5% abandonment.
  • We received 0 chargebacks (Prior to the change, we were seeing between 1-3 weekly.)

Again, we had 0 chargebacks in the period which saved us quite a few man-hours as we estimate 1-2 hours researching and replying to each chargeback.

I believe this was a safe move for us to incorporate.

– Brad Thorson, Jumptastic, Suwanee, GA

We have tools to allow you to choose if you want to decline address mismatches or simply allow them to go through. Call us at 505-296-2847 if you have more questions.