Address Verification Is a Must-Have Tool for Every Online Business


Customers are increasingly using the internet to research products and services since the release of COVID-19. Online platform technologies are now more important than ever in influencing consumer experiences, which are critical for a brand’s market success. Poor customer service caused by complicated checkout procedures prompting customers to abandon their shopping carts is projected to cost the economy $1.6 trillion per year. To top it off, misdelivery increases a company’s overhead costs, all of which might have been prevented if an efficient address verification system had been available.

What exactly is an AVS (Address Verification Solution)?

Address Verification is the process of gathering and purifying incoming address-related data as well as existing customer address databases in order to check shipping addresses in real time all over the world. One of two methods can be used to check a location:

Directly, by capturing a location to verify if it is correct and complete Purging, Matching, and Formatting existing data already stored in a data set against reference postal indexes.

Online merchants use AVS to save time, remove mistakes, and automate manual procedures including address verification. Additionally, it enables organisations to reduce fraudulent transactions that may arise as a result of onboarding unauthorised consumers.

What Does Address Verification Entail?

The end-user must submit a recognised address document, from which data is retrieved using OCR Technology. During the process of verifying an address, the following checks are made:

When a consumer inputs their address into the system, does the system provide correct suggestions for deliverable addresses in real time?

If misspellings and inaccurate addresses can be corrected, precise and valid addresses can be generated.

Whether the user’s entire name is included in the address document.

Authenticity of the Document: Is it possible that the document you’ve supplied has been photocopied, falsified, or otherwise tampered with?

Document is in good shape. Whether the address document has been tampered with, as seen by crumpled edges and unclear text.

It’s estimated that 18% of addresses supplied by internet users when entering data or uploading documents are incorrect. To avoid such mistakes, the address collected from the user’s papers is checked against a set of criteria. A person’s residence number and postcode, for example, might be checked against the information given by the customer. If the AVS system cannot identify a match or detects a missing detail in the given data, an encrypted code will be returned for that reference.

Address Verification Solutions in a Variety of Situations

Address verification solution might be regarded a focal point of numerous utilisation cases in the Internet of Things (IoT). For instance, it is frequently used to plan a place for geocoding, generate significant addresses for accurate delivery of products, or verify if a location truly exists.

Address Validation for Postal Delivery: Address Validation is used for confirming mailing addresses for postal delivery by firms like USPS and FedEx.

E-commerce shipping addresses: The backend functionality of an online retailer’s website requires a shipping address. Almost all databases look at postal addresses as a good place to start when it comes to traditional data modelling. In the case of the client, however, it is the address validation that is useful.

Data from the United States and Canada’s censuses: GIS and marketing specialists employ address verification as a first step in verifying the geographic locations of consumers and businesses. For example, depending on demographics and internet service availability, determining the optimum location for a new retail business.

What is the Address Verification Service’s role in chargeback fraud prevention?

It is occasionally noted that potential fraudsters often conduct the crime of making an online transaction using forged address information. Following a brief period of use of the purchased item, the fraudsters file a chargeback claiming that they never received the item. If a firm does not have a reliable address verification solution, ensuring that the product was delivered to the correct address becomes a genuine pain. People with nefarious aspirations use abandoned addresses as drop-off points for their deceptive activities, costing businesses roughly $20 billion each year.

A strong and purpose-built address verification system enables businesses to meet the key standards of AML/KYC that apply to industries like e-commerce and gambling, as well as assist genuine consumers by identifying and eliminating threats and fraud in a timely manner. The use of AVS also aids organisations in improving their identity verification methods for genuine customer onboarding.


Online merchants can ship the right item to the right consumer at the right time by including address verification systems into their backend frameworks. As a result, consumers may anticipate a purposeful online buying experience, while web-based company platforms can continue to deliver their services with fewer chances of suspected extortion.

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