Incorrect ZIP/Postal Code
What This Means
The ZIP or postal code provided does not match the billing address on file with the card issuer. AVS (Address Verification System) checks flag this mismatch. For SaaS businesses, this can indicate a customer moved or made a typo in their billing address.
Retrying will likely fail again. The customer needs to update their payment method or contact their bank.
Common Causes
- 1Customer recently moved and has not updated their billing address with the card issuer
- 2Customer entered a shipping address instead of billing address
- 3Typo in the ZIP code field during checkout
Recovery Tactics
- 1Ask the customer to verify the billing ZIP code matches what their bank has on file
- 2Consider relaxing AVS checks in Stripe Radar if your chargeback rate is low
- 3Provide a clear error message distinguishing between billing and shipping addresses
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FAQ
Should I require ZIP code verification for all transactions?
For SaaS businesses with low chargeback rates, strict AVS can cause unnecessary friction. Consider allowing transactions where only the ZIP fails but other checks pass, and use Stripe Radar rules to flag rather than block.
Does this affect recurring subscription charges?
AVS checks are typically only performed on the initial transaction. Recurring charges use stored tokens and usually bypass AVS, so this decline is primarily a checkout issue.
How healthy is your Stripe account?
Get a free churn health report. Find pending cancellations, failed payments, and expiring cards putting your MRR at risk.
Run Free Audit