Why is Address Verification and Validation Important?

Whether you’re a business that relies on physical delivery, an ecommerce site that requires customer addresses during registration or a financial institution looking to reduce fraud and enhance your Trust & Safety initiatives, address verification and validation are key tools for your organization. Incorrect or risky addresses cost your company in the form of shipping costs, chargeback fees, fraud prevention strategies, lost revenue and more.


The good news is that by incorporating an address verification API into your data entry forms, you can significantly reduce the amount of bad data entering your system. Rather than relying on manual methods like contacting the customer directly, visiting their home or office, comparing against online mapping solutions, an automated process based on address validation APIs can do all of this and more in just seconds.

There are various technical processes that make up an address verification solution including parsing, standardization and geocoding (converting latitude and longitude coordinates to a geographic location). By leveraging these tools, the chances of false positive or negatives in your database can be greatly reduced, making the investment in an accurate address validation API a sound one for your business. By leveraging fuzzy matching, additional data sources for cross-referencing, user feedback and even allowing users to correct their own mistakes, the effectiveness of an address validation solution will only improve over time. By understanding the many benefits of address validation, you can identify the best use cases for your own organization.

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