ZK-AVS: Zero-Knowledge Address and Spend-Limit Proofs for Real-Time Payment Systems

Abstract

Address verification and spend limit checks in card and instant payment systems expose cardholder ZIP codes and velocity histories to gateways and intermediaries, which increases the privacy impact of breaches. At the same time, issuers rely on these checks to control fraud within strict two to three hundred millisecond authorization budgets. This paper presents ZK-AVS, a design that replaces plaintext AVS and spend limit evaluation with zero knowledge proofs produced on the customer device and verified at the payment gateway. The issuer stores commitments to the cardholder ZIP and per window spend counters, and the device proves that its ZIP matches the committed value and that the proposed transaction keeps cumulative spend within the configured limit, without revealing the underlying values. We instantiate a synthetic workload of fifty thousand transactions and show that AVS mismatch and limit pressure carry useful fraud signal that can be exposed as proof outcomes. The design is structured to fit within sub three hundred millisecond budgets on commodity devices, while removing direct exposure of address and spend history data at the gateway and keeping changes largely at endpoints.