As the world is moving towards digitization, online markets have seen a surge in fraudulent activities. Better security terms need to be established in order to tackle such mishaps. Address verification is essential for any business which involves address data accuracy. It ensures legitimate customer onboarding, as well as online address verification, is essential in order to reveal the true identity of the users.
Finding the Right Addresses
Address verification system enables authenticating the customer’s identity before any transactions could occur in real-time. It reduces the chances of misleading the businesses with the wrong address and inaccurate information which helps them to conduct shipping services correctly and deliver products at the right location. This feature also allows them to establish a better customer experience, leaving a positive impression on the minds of the consumers.
Usage of Address Verification Services in Banks
In order to validate the address, this process is carried out in banks during the time of card authorization. It can be detected through a point-of-sale (POS) terminal or telephone when the cardholder is not present. The billing location on the card is validated with the location on the bank’s documents and assuming that it matches, the required transaction is conducted. Sometimes, it might happen that the transaction is declined due to multiple reasons such as wrong information of the address, outdated address, or even misspelling of location data.
Benefits of Verifying Address in Bank Organizations
Often fraudsters buy a product in illegal ways and then after using it for a few months, they return it by claiming that they didn’t receive the product or start giving unnecessary reasons. When the client’s address is not validated, the chance of returned shipments is increased which can cost huge business losses. This is the reason banks and different businesses dealing in money transactions need to use address verification systems.
As the process of online address verification is conducted smoothly while knowing the exact addresses of the consumers, delivery of the products can be carried out hassle-free. This allows the immediate delivery of the products in a time-efficient way.
Moreover, the brand reputation is enhanced along with this, address verification helps in cutting off costs for the company as correct deliveries at the right spot lets the company save fuel costs. Better customer experience is generated to onboard new customers for the banking sector as one of the worst factors that a company can face is delivering personal documents to the wrong place. This can lead the fraudsters to utilize those documents in an improper forum. Upon this mishap, the customers can go to such an extent that they can start sharing their experience on social media damaging a company’s reputation. While on the other hand, if the address verification system is in the operational process, such mishaps can be eliminated easily.
Drawbacks of Validation of Address in the Bank Sector
It should be noted that a lot of scams can be committed by cybercriminals in banks if verifying an address is not done in the right manner. One of the most common frauds which can be conducted through debit and credit cards is purchasing products through a stolen card. In this process, the transactions proceed in real-time. The online address verification system compares and matches the billing address on the card with the address mentioned on the bank’s documents, and as both of them are matched, transactions even from a stolen card are not declined.
Moreover, this service can be seen to be available for all the major card services like MasterCard, Visa, and much more. Yet a drawback of verifying the address system is the limitations associated with it as it is available for a few countries such as the United Kingdom and Canada.
Wrapping it Up
The online verification of address services allows the banks as well as other companies to detect the true identity of the customers upon revealing the right addresses. As scammers have devised new ways upon which they conduct sophisticated fraudulent activities and strategies of malicious crimes, it has become a requirement for all the financial sector to look out for the correct address of their customers. To verify addresses, documents are carefully looked at and then matched with the billing information on the bill to detect any thefts. With this service, chargeback frauds and fake address deliveries are caught easily, making the company look more secure and protective towards generating customer relationships. Thus, the verifying address procedure has become essential for both the companies and consumers to omit organized crimes and surge better customer experience.
