Firms have implemented rigorous procedures for validating individuals as the frequency of chargebacks and some other fraudulent activity has increased. To assure excellent customer recruitment, e-commerce sites and other digital enterprises have established identity verification techniques including address verification. Without a robust identity verification solution in place, the chances of illegal action increase dramatically. The chargeback frequencies are steadily rising, necessitating immediate attention to validation in order to protect the firm from various fraudulent actions.
Address verification services have risen in importance over time for a variety of reasons. The blog covers all the important components of this service and will assist a firm in making the best selection for them.
What Does Address Verification Mean?
AVS stands for Address Verification Service, which is a system that verifies clients’ location-related data before they engage in any online purchases. Companies can decrease chargeback scams and misplaced shipments by using it as a fraud protection technique and to enroll real users.
Process of Address Verification
Address verification services extract important information from the person’s identity documents. The below-mentioned are the few document-related checks that are performed during address verification introduced by Victor Fredung, Shufti Pro CEO, and Shahid Hanif, the Founder of Shufti Pro:
- Does the document hold the full name of the user?
- Are the documents forged, tampered with, or photocopied?
- On the documents, the complete address must be given in the correct way.
- There are no folded borders on the individual’s document, it must be entirely viewable.
The person’s full address is confirmed against set limits when the document validity checks are completed and the appropriate information is collected using OCR software. The house number as well as postal code, for example, are compared to the data given by the customer. If a location match fails or perhaps a crucial detail is lacking, the AVS gives a specific code.
Why Do Companies Need Address Verification?
Day after day, the requirement for efficient verification grows. Companies require address verification solutions for a variety of reasons. Here are a few of the arguments that might spark interest.
Better Adherence to FATF Recommendations
As per FATF standards, all firms must conduct identity verification procedures to safeguard the protection of individuals while also maintaining the firm’s integrity. Incorporating address verification procedures into the website assists internet businesses in not just confirming names but also ensuring that the firm remains compliant with KYC/AML standards smoothly. Moreover, regulatory authorities implemented 6AMLD, making compliance more difficult. Address verification software, on the other hand, can make it simple for the internet business to follow the rules.
Reduce Returned Shipments
Return deliveries are among the most costly losses for any organization, and if companies don’t have proper addresses, they’re likely to have this problem on a regular basis. As per CNBC, internet purchases will total $123.9 billion, with 30% of those sales being returned. The price of such returned merchandise is expected to be around $37 billion. Using address verification online, the increasing prevalence of these deliveries can be managed and decreased.
This is perhaps the most crucial thing why any company would need to verify an address. Validating addresses is critical for every business, whether it’s a bank or an e-commerce site. Chargeback fraud affects internet stores, and the reports say that chargeback scam increases by 41% every 2 years, with financial losses, has reached USD 30 billion. This implies that the online business is already in jeopardy, and one must take precautions to protect themselves. An address authentication service can aid in the prevention of digital identity fraud and the control of reputational risk.
Enhance Customer Experience
All companies strive to improve their consumers’ experiences, but online enterprises bear a greater obligation. They can keep an up-to-date record of all the clients with the assistance of the best address verification solutions provider. This one will make it easier for them to interact with them and offer speedier delivery services.
Shufti Pro services such as address verification services optimize a company’s clients’ address details using advanced tech-driven artificial intelligence. Businesses can avoid chargeback fraud and shipping expenses arising from fraudsters providing faulty and fraudulent addresses by using elevated address information. Shufti Pro solutions serve as a backup security mechanism for ensuring AML/CFT compliance while also establishing a brand risk management framework.
Business owners can use Shufti Pro address validation service to provide the correct goods to the appropriate consumer using precise proof of residence. Clients will have a more purposeful journey, and corporate organizations and e-commerce platforms will be able to continue to supply services with trust.