Verification processes are acknowledged on a widener scale across the globe. This is the only reason that authentication services have been expanded from just being confined to documents and now companies and business entities are also interested to enroll themselves in the address verification process to improve security. Address verification is usually preferred to be performed upon cardholders to track the location of transactions done through the credit or debit card. In this process, the cardholders provide an address to the issuing authorities. Then, whenever a transaction occurs, the cardholder is sent a message in response to accept or reject the transaction. In this way, the transaction is secured from fraud and ID thefts.
Importance of Address Verification
Address verification seems to be least relevant in the case of verification processes. But, the reality is different from that. According to Shufti Pro News, businesses need address verification because otherwise, they are likely to face chargebacks and losses as these frauds are increasing with a potential percentage of 41% every two years. Thus, it is essential for financial or even e-commerce business entities to get their address verified from a credible source.
Practical Implication of Address Validation
The address of a business entity is verified with the help of artificial intelligence that is integrated into the verification software. The IDV software requires the demonstration of the Identity documents of the client. Along with that, the proof of address is also submitted. Note that the address could be of the business location or that of the personal residence depending upon the nature of transactions being performed. The submitted proofs are then verified with the combined interference of human intelligence and artificial intelligence as it helps to ascertain maximum validity. At last and the final stage of address validation, the client is given the status accordingly as verified or failed; whatever the case appears to be.
Address verification is mandatory as in the year 2019, it was reported by Shufti Pro Funding that 76% of the fraud cases were of visa disputes due to misuse of address information
Benefits of Address Verification Services
Secured Database Management
The process of address verification allows for synchronized maintenance of data in the software. Verification software allows the data to be updated on a frequent basis if any changes occur contrary to using obsolete data. Moreover, the management of data using AI-supported verification services allows for detecting missing fields like the name of the territory or postal code of the area, etc. this missing information can be found with the help of large amounts of data related to addresses stored on the software. Another way to gain information will be to contact the client directly to provide information but comparatively, it may consume more time.
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Address verification with the help of artificial intelligence makes the process smooth and efficient. Address verification services that use machine learning and deep learning in their validation procedure, exponentially save time for business entities and other clients that require to be quickly served without any flexibility in their rigid schedules. The cardholders are also authenticated in a blink of an eye if a transaction appears to be from a different address than the one in records.
Address validation solution supported through artificial intelligence takes all the hustle into its hands. The information provided by the client is updated on a regular basis in order to ensure optimally effective results. For instance, in traditional methods, if a client changes address other than the one written in paperwork. Then that client will be required to get new documents prepared that should contain the latest information for his updated address. It will not only incur huge costs but also is most likely to be subjected to typographical errors, and grammatical mistakes which would make the documents unnecessarily suspicious and unacceptable after all.
Now, in contrast, the automated process of address verification will not only save huge amounts of money but also it will provide undoubted credibility to the client and the verification authority as well. Because no suspicion of human-facilitated tempering will be there or no chance of human error will be reported. The validation will be automatically notified in case the address is changed from the one previously recorded. This will happen when a transaction would be performed after the address has been changed but not brought to notice because of any reason.
Address verification allows financial institutions and business entities to keep an eye on their daily transactions. Because it is quite difficult and nearly impossible for businesses to keep a check on each financial dealing that occurs in their day-to-day operations. Thus, address verification helps these entities to track the use of credit cards and also it strengthens their business image when they provide accurate address information to verification authorities. It builds trust among the parties and saves the business from falling prey to frauds and scams.