Address Verification: A Necessary Tool for Every Online Enterprise

An automated address verification solution can harness required data from the most authentic of the sources and also ensure that customers and businesses are happy in submitting confidential information for fulfillment of KYC and KYB regulations.


The advent of COVID-19 has driven customers towards the adoption of the internet for exploring products and services. Technologies integrated within online platforms now play a significant role than ever in shaping customer experiences that are imperative for creating a brand’s success in the market. It is estimated that an overwhelming $1.6 trillion is lost each year in revenue because of the poor customer service that results from complex checkout procedures forcing customers to abandon their shopping carts. To top it all, misdeliveries add to a business’s overheads, all of which could have been avoided had there been an effective address verification method.

What is an Address Verification Solution (AVS)?

Also Read : 5 Tips for A Healthy Night

Address Verification refers to the process of capturing and cleansing incoming address-related information as well existing address databases of customers to verify shipping addresses in real time around the world. A location can be checked in one of the two different ways:

  1. Forthright, by catching a location to confirm in case it is right and complete
  2. Purging, Matching and Formatting existing information previously put away in a data set against reference postal indexes.

Also Read : Top 3 Tips to Convert Shoppers with Window Decals

By employing AVS, online retailers try to save time, eliminate errors, and automate manual tasks that rely on address verification. Moreover, it also allows businesses to minimize fraudulent transactions that might result from onboarding illegitimate customers.

Address Verification and What It Entails?

The end-user is required to upload a recognised address document from which data gets extracted through Optical Character Recognition (OCR) Technology. Below are some address-related checks that are performed during the process of validating the address:

  • Address Auto-Complete: Whether accurate suggestions for deliverable addresses populate in real time when the customer enters their address in the system.
  • Intelligent Address Correction: If misspellings can be rectified and incorrect addresses formatted to generate exact and valid addresses.
  • Complete Name: Whether the address document contains the user’s full name.
  • Authenticity of the Document: Are there any possibilities of the submitted document being photoshopped, forged, or compromised in any way.
  • Condition of the Document: Whether the address document is one that has been tampered with in the form of crumpled edges and illegible information.

It is estimated that 18% of addresses submitted by online users at the time of data entry or document upload are prone to errors. To eliminate such errors, the address extracted from the user’s documents is verified against certain parameters. For example, an individual’s house number and postcode may be verified against the information provided by the client. If the AVS system does not find a match or reports a missing detail in the submitted information, it will return an encrypted code for that reference.

Click here – 5 Tips for A Healthy Night

Different Uses of Address Verification Solutions

In the Internet of Things (IoT), address verification can be considered a focal point of many utilization cases. For example, it tends to be utilized to plan a location for geocoding, produce substantial addresses for valid dispatch of goods, or check if a location out and out exists or not.

  • Postal Address Verification: Address Validation provides significant utility in verifying mailing addresses for postal delivery carried out by companies such as USPS and FedEx.
  • Shipping addresses for e-commerce: Online retailers require a shipping address for their website’s backend operationality.Almost all databases examine postal addresses as a useful starting point for conventional data modelling. On the contrary, in the case of the client, it is the address validation that comes in handy.
  • Census data from the United States and Canada: Address verification is used by GIS and marketing experts as a first step in determining the geographic locations of customers and facilities. For instance, localizing the best site for a new retail outlet based on demographics and broadband service availability.

How does Address Verification Service Prevent Chargeback Fraud

It is observed every now and then that potential fraudsters regularly commit the crime of making an online purchase on the basis of fabricated address details. Subsequent to utilizing that bought item for a little while, these fraudsters document a chargeback guaranteeing that they never got the item. It becomes a real nuisance for businesses to guarantee that the product was, in fact, delivered to the right address if they do not have a proper address verification solution. People with noxious expectations utilize deserted addresses as drop-off locations to do their deceitful exercises costing organizations around $20 billion every year.

A robust and purpose-built address verification solution allows businesses to fulfill the essential requirements of AML/KYC that apply to industries such as e-commerce and gaming and also serve legitimate customers through timely identification and eradication of risks and fraud. Implementation of AVS also assists businesses in elevating their Identity verification protocols for authentic customer onboarding.



By implementing address verification systems inside their backend frameworks, online retailers can dispatch the right item to the ideal client at the right point in time. Thus, clients can be guaranteed of an intentional internet shopping experience while web based business stages can keep on conveying their administrations with limited possibilities of an expected extortion.

Click here – Top 3 Tips to Convert Shoppers with Window Decals