There has been an increase in the number of chargebacks and fraudulent activity. Especially after the retail sector has shifted to online means of business. In order for them to boost up their business operations, they must have excellent customer relations. In order to develop good customer relations, the businesses must have verified records of all their customers, especially their address. Online business platforms have developed an identity verification solution that can also perform the address validation of an individual for secure customer onboarding procedures. The lack of identity verification increases the chances of criminal activities and chargeback frauds. Let us talk in detail about the importance of address validation.
What is Address Validation?
Address validation has lately become quite useful due to its popularity in the retail sector of the e-commerce platforms. Address validation is a system of authentication to verify the address of the customers. This is done before any transactions are made to ensure that the user is authentic so all the transactions are done safely. Address validation not only verifies the address of an individual but also verifies their identity. Criminals will not have valid address information so this way a fraudulent activity is caught as well.
Address Verification Solution
AI-powered address validation solution can verify a person’s address within seconds. All you need from your customers is their government-issued identity documents and secondary documents that have their addresses on them. The document must not be more than 3 months old or otherwise, the whole process will be declined. The secondary documents could be:
- Identity card
- Driver’s license
- Bank statement
- Utility bills
- Tax bill
- Rent documents
- Insurance documents
Why Businesses Need Address Verification
Due to this effective address verification solution, more and more businesses are utilizing this solution. It has benefited these businesses in many ways. Let’s discuss how address verification is helping the businesses to carry their business operations more smoothly.
This is the major reason why businesses can benefit from address verification. Whether it’s an e-commerce platform or financial institution, fraud is something that every industry wants to get rid of. Address verification helps to prevent fraud. Chargeback frauds are reduced through address verification. Since the customer’s identity is verified, businesses have less of facing fraud.
FATF has laid out recommendations to businesses to record personal and identifiable information of the customer to ensure that they really are who they claim to be. Identity checks are a necessity and address verification is a form of identity checks. By adding address verification, the businesses are more secure and more compliant with the given recommendations by world regulatory bodies.
Improved Customer Experience
Customer Experience is improved through an address validation solution. Identifying and verifying the customer process will not take as much longer and this result in smooth customer onboarding. When businesses have verified addresses of the customers, all the offers, greetings, gift cards, sale offers will be directed at the accurate address and the customer will feel loyalty towards the brand. The delivery process will be carried out smoothly as well and the customers will not have to face the hassle of misdeliveries.
Online Business Platforms
Businesses need a food delivery system in order to excel. If they are given the wrong address, their products will be wasted. Especially the foodservice business, since food will be wasted it will not be reused. Sometimes people order things online and later refuse to accept the delivery as they change their minds, such fraudsters can also be dealt with through aml verification solutions.