How to Start an Address Verification Service

An address verification service is a useful tool for any merchant to reduce the risk of fraud and ensure that customer addresses are correct. Several service providers provide this service, including the United States Postal Service, the Canadian Postal Service, and Smarty. This service is available for free. However, it is not available in all countries, so you should check if it is available before purchasing.

Address validation services have many benefits, including reduced credit card fraud and chargebacks. They can also help share economy businesses like ride-sharing services and e-commerce companies. Moreover, retailers can use an address validation service to personalize products for customers. Businesses can also use address validation services to save time and resources. Additionally, the services can help maintain customer records and marketing strategies.

AVS checks the billing address provided by the customer and issuing bank records to determine the validity of the card. A mismatch indicates fraud. However, if the billing address match, the transaction is not fraudulent. If the billing address does match, the AVS will approve the transaction. If the address does not match, the transaction will be rejected.

Moreover, merchants who use AVS should prompt their customers to provide the correct billing address. Providing the wrong address can lead to a surcharge of about half a percent. In some cases, merchants may also be forced to downgrade a transaction if AVS fails.

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