I've noticed that a number of recurring merchants like Netflix only require:
1. First Name
2. Last Name
3. Card Number
4. Security Code
5. Exp Date Info
What does Vantiv recommend on the back-end, as no AVS info is being collected? (we do see some merchants collecting the zip code field) - What are the pros and cons of this method from a processing perspective? - obviously anything to make the checkout process simpler and faster is better for the end consumer, but are there any issues with acceptance rates, fees, etc. by only sending limited data? We also noticed that they are doing this globally, not just in North America.
Great question brollinson!
The merchant will see a better qualified rate for the card-not-present transactions when AVS Address data is submitted with the transaction.
However, collecting AVS data also enables the merchant to avoid accepting potentially fraudulent transactions.
As you've indicated, there is a trade-off between cardholder convenience and merchant protection.
We recommend that merchants analyze their card-not-present transaction processing to understand what the fraud landscape looks like for their specific business - this will help the merchant to understand how strict they need to be with validating CVV and AVS data.
The Billing Address and Zip Code would generally only need to be collected by your solution once, and can then be associated with their cardholders user account and 'card-on-file' data for any recurring payment submissions.
Sending this AVS data with each recurring request will help to ensure that the best rate is achieved.
The interface for which you've include a screenshot does not collect AVS data, but it's possible that the billing address and ZIP code are already known values for that user, or were collected on a separate form.
I'd like to refer you to review this documentation for additional details regarding the benefits to leveraging AVS:
Integration Guidelines | Address Verification Service (AVS)
Please let us know if you have additional questions or concerns or if there's anything else that we can do to assist.
Regards,
paulblick