How the Address Verification Service (AVS) Works

We can use the Postal Service Address Verification system as a template to understand how this process works. First, using a platform like the API, you can verify addresses right at the entry point. This is usually done using a real-time address verification method incorporating the API on an individual website. You can also use the batch address validation to update and cleanse your mailing list. After this, you merely need to upload the lists in CSV or Excel formats using the API services. Otherwise, you can directly install the platform on your system.

Once you've done this, you should complete the postal service verification process in three straightforward steps: First, "standardize." This means you need to format all addresses into a standard format according to the conventional guidelines. You may also standardize international addresses according to the destination country's postal requirements. Next, "validate." To do this effectively, you must carry out proper standardization (this ensures the authorities will not mark the valid addresses as "invalid" due to variations in the format). The validation process also helps check whether an address is mailable or if it actually exists.

Finally, "verify" everything. Following validation, all the addresses are usually cross-checked with the postal organization's official database (and other equally trustworthy sources). This verifies and corrects the address components to ensure there's no room for errors. At this point, the verification is complete.

Address Verification System (AVS) Example

John works at a reputable postal address verification company. John's assignment involves ensuring that all addresses that appear in the database are deliverable and valid. This involves comparing the existing addresses with what appears in the official database. He compares the data using various trustworthy sources. Initially, John parses and standardizes the addresses according to the standard format. Once he finds an address, he usually cross-checks to verify and authenticate the details and ensure the details are 100% correct.

If he fails to locate a specific address, John marks this and declares it invalid. As a rule, he always finds most of the addresses, but there's a problem—the addresses are often incorrect. Regardless, that is precisely what makes his work invaluable—the validation helps check all the details align with the USPS international guidelines. In the end, this process makes the addresses mail-ready.

John regularly validates and verifies all the addresses at his disposal in two primary ways. He either does this at the point of entry or when processing the various mailing lists. When his day ends, John always feels happy. He knows his work at the address verification services helps to save businesses from many undesirable situations. Some of these are failed deliveries, bad data, a tarnished brand image, high shipping costs, and wasted time.

Significance of the Address Verification Service (AVS)

Many leading organizations that deal with thousands of customers have embraced the address verification service. It is an effective way to combat the rise of fraudulent activities and reduce the number of chargebacks. AVS is, therefore, a practical, robust mechanism that helps verify the individual details (particularly in the e-commerce space). Many online businesses also use AVS and other verification systems to guarantee authentic customer onboarding. Without putting in place such robust measures, incidences of criminal activity can significantly increase. Many online businesses know that when the chargeback ratios begin to increase, this is a red flag- indicating an increase in fraudulent transactions.

Those who run e-commerce businesses or manage financial institutions know it's crucial to verify the customer's details, including their addresses. Significantly, a recent report revealed there was a 41% increase in chargeback fraud occurring every two years. In 2019, the financial losses rose to a staggering $30 billion. Thus, those running such business are aware they're in danger of losing more money in the future- that is precisely where the address verification service comes in -the system can help companies prevent fraud and achieve better reputational risk management. Moreover, AVS can reduce cases of returned shipments (which is among the most significant losses for most online businesses).

Overall, AVS can enhance the all-around customer experience-for instance, those using the system can have updated customer records at their fingertips. In this way, they can easily communicate with customers, providing faster and efficient service delivery. Further, the use of AVS can help businesses attain better compliance with the existing industry regulations (according to current US recommendations, all companies must carry out identity verification checks to maintain business integrity and guarantee the security of individuals). Doubtless, the address verification service is an efficient system that helps screen and authenticate addresses to secure day-to-day operations, sieving out fraudulent transactions.