In the digitalized world the rising number of chargebacks and other criminal suspicious activities are disrupting the workflow of e-commerce platforms and other businesses. Due to this reason, digital businesses developed effective mechanisms for verifying the customers’ identities. The online services which tend to provide delivery services mainly e-commerce platforms have established top-notch verification strategies as well as the Validate address in order to ensure secure and seamless client onboarding. In the absence of verification systems, the risk of suspicious activities fortunately increases.
What is Meant by Address Verification?
Address verification services are referred to as the system that verifies and authenticates the information related to customers’ addresses before any kind of digital transaction. The online platforms provide such services incorporating AVS as fraud prevention and ensuring flawless customer onboarding.
Process of Address Verification
The new customers which tend to get registered on the digital platform have to verify their identities by providing identity documents. Verifying customers’ addresses plays a vital part in the identity authentication process. The address of the customer is authenticated before getting them on board. Traditionally this was done by meeting the customer in person. But with the technological boom, the old school procedures are now automated and the clients’ address is verified through digital means. This is the fruitful result of AI emergence and advancements. This software does not have language barriers as it can verify the address in any language using OCR technology.
Uploading Identity Documents
The system requests the customer to upload the identity document. The customers are then required to upload a selfie to match the face against the image on the document. The documents are verified by matching the facial image with the image placed on the documents.
Submitting Additional Documents
The documents such as utility bills, electricity bills are to be submitted to the system by which the address verification of the customer is done.
Authentication and Generating Results
After extracting the information from the identity documents using OCR and then validating them by matching them with the facial imprints, the verification process is completed. On the basis of the percent of the match, results are dispatched.
Benefits of Address Verification Solution
Online businesses tend to face multiple frauds which leads them to financial loss as well as damages reputation. Therefore, address verification is viable for all online businesses whether it’s financial institutions or e-commerce companies. The potency of verifying addresses is pretty much important which helps the firms to fight chargeback frauds.
Reduction in Returning Shipments
Returned orders are also one of the biggest challenges which online businesses tend to face. This happens when the customer provides an address that is either false or does not exist. Around $123 billion of online transactions are done and 30% among them are returned due to address issues.
Flawless Customer Experience
Enhancing the customers’ experience is the goal of every digital business. Its businesses target as well as their responsibility to maximize the user experience by preventing suspicious activities. By employing address verification the digital service can keep records of the customers as well as effectively verify their addresses. By doing so the business can communicate with the customers in the most effective manner and also provide them with quick shipments. Therefore the credibility of platforms also increases.
Minimizing Failed Deliveries
Failed deliveries tend to pour negative impacts on the merchants. Unsuccessful delivery results in multiple scenarios such as paying back to the customer, and extra cash for re-deliver the order. This also raises question marks about the platform’s credibility. Thus, by adopting address verification the number of failed deliveries would be reduced.
Corporations in Need of Address Verification Systems
The E-commerce industry tends to lose huge amounts of money because of the increasing number of returned orders, failed deliveries, and chargeback scams. The criminal activities give false addresses before placing the orders which leads to the situation that shipment does not arrive due to ambiguity in address. Therefore, such businesses are obliged to place the address verification systems which provide extra layering of protection and secures the platform from emerging frauds.
All the fintech companies which involve transactions are obliged to incorporate the address verification services which ensure flawless and secure customer onboarding. The fraudsters use tempered identity documents and illegitimate addresses for registration. Afterward, such accounts are used in multiple illicit activities such as money laundering and counter-terrorist financing. To pull off such happening from the ground the finance businesses have to opt to address validation procedures.
Summing it up, due to the rapid increase in digital frauds, online businesses are in need of technology-based solutions to fight the fraudsters. AI-based online address verification solution is one solution that secures the business interest as well as increases their credibility.