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Risk Manager Glossary

With Square’s Risk Manager, you can create your own rules to determine what happens when you process a suspicious payment that meets certain criteria.

Below is a glossary of Risk Manager terms and conditions you can use to create a rule.

Address Verification System (AVS)

Address Verification System or AVS checks to see if the buyer’s provided billing address matches the address that is on file with the card issuer. If these match, a green check mark will appear in this column in the Alerts tab within the Risk Manager section of your Square Dashboard. If the addresses don’t match, a red X will appear instead. You can select AVS does not match as a condition for any rule action.

If the card is issued in a country that doesn’t use AVS, or if we’re unable to compare information due to technical error, AVS results will be unavailable. Additionally, you’ll have the option of selecting AVS unavailable as a condition.

Note: It is always possible that a cardholder has moved and hasn’t updated their billing information with the card issuer. However, sometimes this type of mismatch can indicate that a card has been stolen and used fraudulently, thus increasing the risk of a payment dispute.

Shipping address

When a shipping address is requested during checkout, you can select Shipping address does match the billing address or shipping address is unavailable as conditions for any rule action.

Card on File (COF)

Card on file or COF column in the Alerts tab indicates whether or not a cardholder has previously authorized your business to store their payment card details through Square. When you select an alert, you’ll be able to see in detail how many cards on file that cardholder has saved with you. This can be useful in determining if you’ve worked with a cardholder in the past, and if they present a risk of issuing a payment dispute.

Card Verification Value (CVV)

Card Verification Value or CVV is the 3-digit verification code on the back of a Visa, MasterCard or Discover card. For American Express, this is the 4-digit verification code on the front of the card. You can select CVV invalid as a rule action for instances when this code is entered incorrectly.

Risk Evaluation

Square uses its own payments data information to determine if an incoming payment has a high or moderate risk of fraud. You can select either of these risk evaluations as conditions for any rule action.

Learn more about Square Risk Evaluations.

Note: Although this tool is designed to help prevent payment disputes, the risk of a payment dispute is present with all card payments. Sellers will continue to be liable for all payments they accept and the disputes they receive. Square is not assuming liability for payments, regardless of the risk evaluation that is delivered.