diff --git a/api/src/cartsnitch_api/config.py b/api/src/cartsnitch_api/config.py
index 5111997..7642deb 100644
--- a/api/src/cartsnitch_api/config.py
+++ b/api/src/cartsnitch_api/config.py
@@ -1,13 +1,16 @@
 import base64
 
-from pydantic import model_validator
+from pydantic import AliasChoices, Field, model_validator
 from pydantic_settings import BaseSettings
 
 
 class Settings(BaseSettings):
     model_config = {"env_prefix": "CARTSNITCH_"}
 
-    database_url: str = "postgresql+asyncpg://cartsnitch:cartsnitch@localhost:5432/cartsnitch"
+    database_url: str = Field(
+        default="postgresql+asyncpg://cartsnitch:cartsnitch@localhost:5432/cartsnitch",
+        validation_alias=AliasChoices("CARTSNITCH_DATABASE_URL", "DATABASE_URL"),
+    )
     redis_url: str = "redis://localhost:6379/0"
 
     jwt_secret_key: str = "change-me-in-production"
@@ -49,5 +52,12 @@ class Settings(BaseSettings):
             ) from None
         return self
 
+    @model_validator(mode="after")
+    def normalize_database_url(self):
+        """Normalize postgresql:// → postgresql+asyncpg:// for the asyncpg driver."""
+        if self.database_url.startswith("postgresql://"):
+            self.database_url = self.database_url.replace("postgresql://", "postgresql+asyncpg://", 1)
+        return self
+
 
 settings = Settings()
diff --git a/api/tests/test_config.py b/api/tests/test_config.py
new file mode 100644
index 0000000..f594bc2
--- /dev/null
+++ b/api/tests/test_config.py
@@ -0,0 +1,48 @@
+"""Tests for Settings config, specifically the database_url env var fallback."""
+
+import os
+
+from cartsnitch_api.config import Settings
+
+
+def test_database_url_prefers_cartsnitch_prefix():
+    """CARTSNITCH_DATABASE_URL takes precedence over DATABASE_URL."""
+    env = {
+        "CARTSNITCH_DATABASE_URL": "postgresql+asyncpg://user1:pass1@host1:5432/db1",
+        "DATABASE_URL": "postgresql://user2:pass2@host2:5432/db2",
+    }
+    settings = Settings(**env)
+    assert settings.database_url == "postgresql+asyncpg://user1:pass1@host1:5432/db1"
+
+
+def test_database_url_falls_back_to_database_url():
+    """When CARTSNITCH_DATABASE_URL is absent, DATABASE_URL is accepted."""
+    env = {
+        "DATABASE_URL": "postgresql://user:pass@dbhost:5432/mydb",
+    }
+    settings = Settings(**env)
+    assert settings.database_url == "postgresql+asyncpg://user:pass@dbhost:5432/mydb"
+
+
+def test_database_url_normalizes_plain_postgresql_prefix():
+    """DATABASE_URL with plain postgresql:// is normalized to postgresql+asyncpg://."""
+    env = {
+        "DATABASE_URL": "postgresql://cartsnitch:cartsnitch@localhost:5432/cartsnitch",
+    }
+    settings = Settings(**env)
+    assert settings.database_url == "postgresql+asyncpg://cartsnitch:cartsnitch@localhost:5432/cartsnitch"
+
+
+def test_database_url_preserves_asyncpg_prefix():
+    """CARTSNITCH_DATABASE_URL with postgresql+asyncpg:// is left unchanged."""
+    env = {
+        "CARTSNITCH_DATABASE_URL": "postgresql+asyncpg://cartsnitch:cartsnitch@localhost:5432/cartsnitch",
+    }
+    settings = Settings(**env)
+    assert settings.database_url == "postgresql+asyncpg://cartsnitch:cartsnitch@localhost:5432/cartsnitch"
+
+
+def test_database_url_default():
+    """When neither env var is set, the hardcoded default is used."""
+    settings = Settings()
+    assert settings.database_url == "postgresql+asyncpg://cartsnitch:cartsnitch@localhost:5432/cartsnitch"