How Does an Address Verification Service Work?
- aseiu law
- May 31, 2023
- 2 min read
AVS is one of several tools credit card companies use to stop fraud and chargebacks. It works by comparing the billing address entered by a customer during checkout with the address on file for that particular cardholder. If the addresses don’t match, the issuing card company can decline the transaction and alert the merchant.
The problem is, criminals can get around AVS. They can use stolen cards with fake IDs to buy online, or they can even change their addresses, so the card companies’ system won’t catch them. This is known as CNP (card-not-present) fraud.
Address verification is important because it can prevent this type of fraudulent activity. But how does it work? It’s a common mistake for customers to enter an incorrect address during checkout or shipping. The problem is, if you ship a package to the wrong address, it could end up being returned or undelivered, costing you money on postage and affecting your customer’s experience.
To combat this, you should offer a free address validation tool on your site to help avoid these problems. An effective service will allow customers to enter their address with just a few keystrokes, and it will also correct the errors that might have been made during checkout or during shipping.
A good address validation service will be able to process data and standardize it in line with the USPS guidelines for postal discounts. It will also be able to geocode the address, which means that it will know where to send the package or letter. It will be able to segregate the address into residential and commercial categories, which will help you target your marketing campaigns better. It will also be able to include the suite number or floor level of a building.
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