Address Verification Service - Why your Business Needs it?
Business

Address Verification Service – Why your Business Needs it?

The Address Verification Service involves verifying the authenticity of the address provided by the customer. The Address Verification Service (AVS) is used to prevent fraud and chargebacks. The way AVS works is to make sure that the address entered by the customer is similar to the one associated with the entered credit card account. 

Why is there a need for Address Verification Service? 

Sometimes renowned companies or banking institutes suffer money losses, chargebacks, etc. because of identity fraud. In order to make sure that the organization does not suffer from any financial losses, the companies incorporate address verification along with other forms of verifications to ensure the authenticity of the customer. 

It is the requirement of all the banking and financial institutions to submit the identity proof and the proof of address. These mandatory KYC regulations are crucial to comply with the local and global guidelines and regulations to verify the user’s identity online which then enables the user to make accounts on any financial or banking site online. Address Verification Service is usually performed by the banks during the time of account authorization. 

How does Adress Verification Service work? 

AVS is a tool that is provided to the merchants by the issuing banks or credit card processors in order to prevent credit card fraud and other financial frauds. The Address Verification Service checks the address submitted by the card user with the cardholder’s billing address on record at the issuing bank. This is done to verify the authenticity of the credit card transaction. The credit card processor or the issuing bank sends a response bank to the merchant indicating the degree of address match. Depending on this, the merchant will decide if the credit card transaction should be accepted or declined. 

What is Required of the Client for Address Verification? 

In most cases, the client is asked to upload a Proof of Address document which includes the personal and residential information of the client. The document should have some particular information like the full name of the client, their residence address, date of issue etc. 

Some of the common documents that can be submitted as proof of address include: 

  • Utility bill of the residence mentioned by the user 
  • Credit card statement
  • Dated bank statement which should not be older than 2 or 3 months
  • Any government-issued correspondence
  • Employer’s certificate for proof of residence
  • House purchase/lease documents 

There can be some additional documents that can be submitted depending on the different banks and their policies. 

Address Verification services protect organizations from false customers or fraudulent bank transactions. Although Online Address Verification services are becoming highly popular in countries like the United States of America, the United Kingdom, and Canada, the service has yet to come to other countries. This service is used and supported by all major card services like MasterCard, Visa, and American Express, etc. Address verification surely provides one security and mitigates the risks of digital scams like identity theft, credit card frauds, chargeback frauds, etc. 

smithclark124
Technical Content writing is my passion. I have broad experience in writing for the technical field. I started my writing at the age of sixteen when I was in college. Now I’m already writing for contribution sites as an independent influencer. I wrote many articles on medium and many of them are published in various publications. I wrote many case studies for businesses to let them know the real need for digital transformation for their business.
https://shuftipro.com

One Reply to “Address Verification Service – Why your Business Needs it?

Leave a Reply

Your email address will not be published. Required fields are marked *