What is the purpose of the Address Verification Service (AVS) as it relates to Crowne Plaza's card transactions?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Security features such as CAPTCHA, velocity filters, the Address Verification Service, and requiring a Card Verification Code for Card Not Present Transactions can help combat fraud.
Using AVS when submitting Authorization requests for Card Not Present Transactions can help you identify potentially fraudulent transactions and can help lower Card Organization interchange rates, but it does not guarantee a transaction is valid and the AVS response does not impact whether an Authorization request is approved or denied.
We may charge you an AVS fee for any AVS request you submit, even if we are not able to provide a response to the request.
You are responsible for all Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts arising from fraudulent activity processed through your Merchant Systems and/or your Merchant Account (regardless of any AVS response that you receive).
Address Verification Service (AVS): A service for verifying a Cardholder's address, primarily for Card Not Present Transactions.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Address Verification Service (AVS) is used to verify a cardholder's address, especially for transactions where the card is not physically present. Utilizing AVS during authorization requests for these types of transactions can help a Crowne Plaza franchisee identify potentially fraudulent activities.
While AVS can assist in spotting potentially fraudulent transactions and may lead to lower card organization interchange rates, the FDD clarifies that it does not guarantee the validity of a transaction. The AVS response has no bearing on whether an authorization request is approved or denied. Crowne Plaza may charge a fee for each AVS request, regardless of whether a response is provided.
Ultimately, the franchisee remains responsible for all chargebacks, third-party fees, servicer fees, and other costs associated with fraudulent activity processed through their merchant systems, irrespective of the AVS response received. This highlights that AVS is a tool to aid in fraud prevention but does not absolve the franchisee of the financial responsibility for fraudulent transactions.