Emerging technologies nowadays are changing how consumers shop, whether they opt for online shopping or on-premises shopping. Customer experience plays a pivotal role in building the success of a brand in the market, and hence digital tools have helped a lot. However, there are approximately USD 1.6 trillion losses due to bad customer experience resulting in customer checkout and abandoned carts. Deliveries that are misplaced are amongst the rising concerns for businesses whether they have to face shipping charges due to inefficient address verification procedures.
Automated solutions to authenticate the addresses of the individuals for the businesses is essentially no business should miss and counters of reliable data. Moreover, it reduces the chances of customers abandoning carts due to long hectic manual data entry processes every time they want to shop online.
Businesses with address verification can deliver the right products at the right time with confidence without facing financial losses.
What is Address Verification, and how does it work?
Address verification services provide services to businesses to verify the addresses of the customers and clients prior to customer onboarding. Businesses verify address to prevent prevalent frauds and only onboard legitimate customers and mitigate chargeback frauds and lost deliveries.
The process of address verification is straightforward and is performed in 3 steps.
- The user uploads their selfie and identity documents while holding them
- The next step involves uploading documents as proof of address, such as utility bills and residential contracts. The documents cannot be more than three months old and are used to verify the person’s address.
- The details of the address are extracted and analyzed in a series of verifications. Finally, the results are shared with the customer and the data is stored in the client’s back office.
How does Address verification help businesses fight fraud?
The address verification solution extracts pertinent information from the user’s identity documents. The following are some verifications that are performed.
- The name of the user is checked if it is on the document
- The documents are checked if there are any forgery, altered or compromised documents in any possible way
- The complete address is checked
Fraudsters often make an online purchase and then file a chargeback stating they did not receive the product. This becomes complicated where there is no procedure to ensure that the product was delivered to the correct address. An address is a critical element in determining the risk associated with a digital transaction. Bad actors utilize vacant properties as drop-off places for their fraudulent activities, which cost merchants over 20 USD billion each year.
Address verification is a critical component of complying with KYC/AML criteria in sectors such as e-commerce and gaming. A purpose-built address verification system enables firms to service real consumers, identify and eliminate hazards, and conduct fraud-free commercial operations. Additionally, implementing address verification services enables organizations to strengthen their ID verification methods for secure customer onboarding.
Address verification with ML
Artificial intelligence and its derivatives such as machine learning and computer technology increasingly provide digital solutions. For example, a machine learning-based address verification system can self-learn address data without requiring much effort each time. In addition, the intelligent solution can now quickly understand the data fields on a particular document because it already knows how they look.
Today, an intelligent address verification system combines geospatial techniques that combine address data with location analytics to ensure customer identification is verified without a doubt. This enhances the quality of data that the system learns, allowing it to monitor prospective consumers more effectively. Online forms can also save addresses and other personal information such as name, DOB, postal code, and other helpful suggestions.
Diminish Unsatisfactory deliveries
Failed deliveries are caused by incorrect address information, costing businesses a significant amount of revenue. A complete address verification solution can collect the information required during account opens, ensuring on-time delivery and increasing client conversion prospects.
The improvement in data quality achieved via an address verification decreases unsuccessful deliveries and the time and effort required by customer service teams to address relevant complaints. This enables a business to concentrate more on revenues and generate a strong brand reputation.
Businesses must rely on robust address verification solutions to ensure they comply with changing KYC/AML verifications. Technological advancements bring about merits and demerits and to overcome the challenges it is essential to adopt advanced digital tools. These tools not only enhance customer experience but rather ensure that the brand reputation of the business also increases.