Every bank runs verification checks on credit card payments. The two fields of verification a bank checks when processing an online payment are the CVC number and the zip/postal code. With Kajabi, your Checkout is designed to require the CVC number when customers input their credit card number to help with these verification checks.
In this article:
Card Verification Check (CVC)
The CVC (also referred to as CVV) is the three- or four-digit number printed directly on the credit card, usually either on the signature strip or the front of the card. Radar includes a built-in rule to block any payments that fail the CVC verification check (note that this does not affect payments where the CVC check could not be performed).
In general, only cardholders in physical possession of the card should have access to the CVC number. Businesses are not permitted to store the CVC number, so it’s unlikely that a fraudster can obtain this information through a computer breach. However, CVC verification does not protect against physical theft of a card or card information used on a compromised computer, or website that isn’t secure.
Address Verification (AVS)
The result of the CVC, address, and zip/postal code checks are ones that most payment processors pass directly through from the cardholder's bank.
AVS is used when the merchant verifies credit card data, such as billing address and zip code, against the Visa/MasterCard billing information of the cardholder. AVS verifies that the billing address of the credit or debit card matches the address that was given by the customer.
If the zip check has failed, it's because the bank is telling the payment processor that the zip code does not match the one it has on file.
If the cardholder has recently moved, it may take their bank a while to have the correct zip code on file for them. If the cardholder hasn't moved recently, they may wish to call their bank and confirm that the information their bank has on file is correct. Using the zip/postal code that the bank has on file for this card will stop this particular error from happening.
Have the customer call their bank and request to update or verify the address associated with their card.
If the payment is being declined and you would like to accept it, you may want to see if the “Decline charges that fail zip code validation” setting is on in your Stripe admin.
You can verify this from the Account Settings page in Stripe. If you're confident accepting payment from this customer when the zip/postal code doesn't match, you may wish to turn that option off temporarily to allow you to accept their payment.
When a customer submits a transaction for a new payment, PayPal will pass the address and CVC information provided by the customer to the issuing bank. If the bank approves, the transaction will process successfully.
If the issuing bank’s response does not recognize the CVC or AVS check, PayPal will reject the transaction or verification.