Address verification plays a vital role in making the business stay afloat. Nowadays many businesses succumb to a financial loss due to wrong delivery addresses. Wrong addresses are either created due to human writing errors or unfulfilled address fields. Despite few automated systems integrated with online stores, the accuracy rate to correct wrong addresses is significantly low. Customers often find it frustrating when their orders are not delivered on time or they miss the right delivery address.
It tends to create friction in a seamless customer experience. Moreover, businesses that intend to grow their customer base get a substantially lower number of conversion rates. Therefore, the right address is not only important to deliver products but could also help companies with their marketing efforts.
For this reason, address verification systems are necessary and mandatory for various online businesses to prevent fraud. Further, it helps to limit chargeback fraud. Address validation service ensures that addresses entered by the customer are currently present on the cardholder’s account. During the checkout, customers entered addresses are compared with an address on file that is with an issuing bank. After comparing the addresses, the address verification system automatically returns the code to the merchant. Generally, an address authentication service is a multi-layered fraud protection system that ensures all transactions are validated.
How Address Verification Service Providers Can Ensure Best Customer Service
Address validation service providers have created multilayered solutions to prevent online businesses from various fraudulent attempts. The address verification solution provides validation through more than one way that works effectively to create a frictionless experience for customers. Ultimately, companies get verified customers and customers benefit from a reliable organization.
Address verification system ensures proper identity verification and formatting of addresses asset in local postal standards. This way businesses can be sure of the correct address format and ensure that the mailing gets to the right addressee. Without it, marketing efforts and business correspondence will serve no value to the organization.
Here is how the address verification system works to ensure a perfect address match.
Geocoding
Within the address validation solution, geocoding serves as an important factor for most businesses. Geocoding helps businesses to transform their specific postal address into geographical coordinates. This feature is quite effective to achieve goals in logistics and transport.
Through accurate geolocation coordinates, companies can get the best route to deliver their goods. This way, companies can save time, money, and fuel. The system works flawlessly to meet the needs of someone that has to geocode addresses within a short duration while avoiding any errors.
Name Validation
When a customer inserts their name while filling out the contact form, humans tend to create typo mistakes or duplication errors. With the help of an automatic address and name validation service businesses can ensure holding an optimized archive.
Email Address Verification
Address verification system holds a large database that contains a huge list of email addresses. All the business has to do is upload their file to the system in any format and the system would easily process the information. Further, it would ensure compliance with the data privacy regulations.
Mobile Number Authentication
Large databases contain phone numbers in huge quantities that provide an infinite business opportunity. But it only happens if the information is correct.
Advantages of Integrating Address Validation System
● Reduction in Fraud Attempts: For instance, if the customer’s credit card information is stolen and it’s being used to make various online purchases. It’s often quite likely that the customer using a stolen credit card doesn’t necessarily know the cardholder’s billing address or zip code. By requiring such information, fraudsters would stop from proceeding any further.
● Lower Chargeback Rate: By enabling an address verification system, businesses could minimize the chargebacks. Although, it might take some time and effort to address this issue.
● Save Cost: With the implementation of an address authentication solution, huge financial losses incurred due to chargebacks and other fraud types can be lowered. Further, if the transaction contains a card holder’s address, the processor would automatically allow its processing at a cheaper rate due to an additional verification layer.
● Automatically Updates Client Information: The system automatically updates the client’s information that may have changed over a period. It would ensure that the address on the file is current and do you necessarily need to reach out to your customers.
The business should also consider the importance of the address verification system and its impact during the customer’s checkout process.
Address verification systems offer a cutting edge to various businesses that need to authenticate their customer base and prevent fraud attempts. Therefore, implementing an address validation solution can help businesses to outsmart their competition. Moreover, it helps with streamlining the customer experience and increasing the conversion rate.
