The way people browse for things online is transforming with today’s cutting-edge technologies. With technological innovation and its implementation, client experience is critical to a company’s market success. Since poor customer service costs the economy 1.6 trillion dollars each year, confusing checkout procedures that lead to abandoned carts remain the most significant concern. Misdirected deliveries are yet another problem for enterprises in which they have to encounter huge shipping fees owing to the unavailability of appropriate address verification methods.
Only valid and realistic information enters the system due to an automatic technique for validating customer address details. It reduces the chances of fake information, enabling banks and the financial sector to provide their clients with proper goods.
What is Address Verification System?
The AVS (full for Address Verification Service) verifies clients’ address-related details before they conduct any online payments. Verifying the address of the client helps companies to avoid fraud and enroll legitimate users, which helps to reduce chargeback fraud and missed shipments.
Process of Online Address Verification
Here is how any user’s address is verified by the banking and financial firms:
- The user is asked to upload their photograph holding their identity document and the system matches the facial identity with the picture present on the identity document.
- Then the user is asked to provide their residential or business address details as a piece of second evidence to validate address.
- The address details are retrieved and passed through several checks and the outcome is shared with the user and stored in the back office.
What Is Checked During Address Verification?
The AVs system obtains essential details from the identity documents of clients. Below are some of the document-related checks which are performed to verify address:
- Is the documentation forged, photocopied, or tampered with?
- Is the full name of the client mentioned on the document?
- There should not be any folded edges on the document and the document is entirely viewable.
- A complete address should be displayed in the correct way on the document.
The user’s full address is confirmed against specified parameters when the document validity checks are completed and the appropriate information is collected using OCR software. The house number and postal code, for example, are compared to the details given by the client. If such an address matching fails or an important detail is lacking, the AVS gives a specific code.
How AVS Deals with Cahrgeback Frauds?
Fraudsters have become smarter now. They make an online purchase, use the product for a couple of months and then file chargebacks against the company claiming that they haven’t received the product yet. The issue arises due to a lack of verification procedures that could check that goods are shipped to their accurate destination. This is why verifying an address has become so important so that the risk associated with online transactions could e determined. Bad actors use residencies as their drop-offs to carry out heinous crimes costing the firms a huge.
Verification of address is a must thing for fulfilling KYC/AML regulations in industries like gaming as well as e-commerce. With an efficient address verification system, companies identify and eliminate risks, serve their clients better, and conduct their business activities without any fear of being exploited by criminal activities. Enterprises can also use address verification services to improve their identity verification methods for safe customer onboarding.
Machine Learning and Robust AVS
Artificial intelligence and its derivatives like computer vision and machine learning are used widely in digital solutions. The address verification systems which are powered by machine learning have the capability to self-learn residential details without requiring much labor every time.
Intelligent AVS now includes the latest technologies that integrate address data with location insights for perfect consumer identity verification. This enhances the data quality that the system learns, allowing it to monitor future consumers more effectively. Besides this, digital forms can save clients’ personal details (name, DOB, and ZIP code) and addresses to make greater suggestions for the end-user.
Address verification solution optimizes client address information using modern technology which is powered by artificial intelligence. Companies can avoid chargeback fraud and shipping expenses arising from fraudsters providing faulty and fraudulent addresses. This serves as a backup security mechanism to ensure AML/CFT compliance while also establishing a reputational risk management framework.
Online businesses can use efficient address verification services to provide the correct goods to the appropriate consumer using accurate proof of address. Customers will have a more purposeful experience, and corporate organizations and e-commerce platforms will be able to continue to supply services with trust.