One problem with the Address Verification System (AVS)for fraud prevention is the number of false positives,meaning that the merchant rejects a valid order.One reason for these rejects is simply that cardholders make mistakes in inputting their addresses or zip codes.

Question

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The statement is true. The Address Verification System (AVS) can produce false positives, which means a legitimate transaction can be rejected due to incorrect input of the address or zip code by the cardholder.

One Problem with the Address Verification System (AVS)for Fraud Prevention