The e-commerce industry is currently growing at a fast pace. According to one projection, online enterprises will earn $4.9 trillion in sales globally by 2020. In addition, a $7.4 trillion gain is expected by 2024. Businesses have been both delighted and astonished by the e-commerce sector's huge expansion and almost limitless possibilities. The addresses of an internet company's consumers are its most crucial feature. Typing an address incorrectly might result in a complete waste of time and money. Furthermore, as chargebacks and other fraudulent actions increase, organizations are using efficient strategies for validating individuals.
To secure legitimate customer membership, e-commerce and other online enterprises have established reliable authentication techniques and authorization technologies. Without a reliable identity verification system, the likelihood of criminal activity significantly increases. Both chargebacks and fraud are happening more frequently every day. As a result, address verification is essential to safeguarding online businesses from various scams. For a variety of reasons, address verification services have grown more and more well-liked recently. To help it decide which option is best for the business, let's go over each crucial component of this solution.
Address Verification - A General Overview
As a security measure, before each transaction, use an address detection approach to check the customers' addresses. This ensures the privacy and security of all communication and transactions. Making sure the address is accurate is crucial in order to confirm the reliability of the customers.
Services for address verification optimize client address details using cutting-edge AI-powered technologies. Businesses can lessen chargeback fraud as well as the shipping charges brought on by giving false and misleading addresses. Furthermore, it creates a framework for lowering reputational risk.
Online Address Verification - Why is It So Important?
Chargeback fraud and returned deliveries cost e-commerce companies millions of dollars each year. Con artists regularly provide wrong addresses, making it difficult to deliver products to the proper location. USPS Address verification services provide an additional degree of protection, which aids in the reduction of fraudulent activities. A trustworthy address verification system is more vital than ever. Numerous variables impact the requirement for this service within the organization. Among them are the following factors:
The main justification for a company needing to confirm an address is this. Verifying an address is important regardless of the industry, be it finance or online retail. Statista reports that chargeback fraud is a problem for online businesses, costing them more than $20 billion in lost sales in 2017. Businesses can better manage reputational risk and reduce online fraud by verifying address.
Decrease Returned Shipments
Deliveries that are returned are one of the biggest disappointments for any business, and if addresses are wrong, the business will probably encounter this problem frequently.
CNBC projects that online sales will total $123.9 billion, with 30% of that amount going to refunds. An estimated $37 billion will be spent on these products. These deliveries can be managed and made less frequent by using an AI-driven address verification system.
Improved Customer Experience
All businesses strive to provide a better customer experience, but online retailers bear a heavier burden. Each company strives to make its customers happy, but online retailers have an even greater duty. They can maintain the most up-to-date list of all their clients because of online address verification. As a result, the business will be in a better position to communicate with them and offer delivery services more quickly.
Better Compliance with FATF Recommendations
To maintain corporate integrity and protect customer security, all businesses must implement identity verification procedures in accordance with FATF regulations. Address verification enables online businesses to validate customers' identities and ensure that they are effectively complying with KYC/AML regulations. Compliance has become more difficult as a result of regulatory bodies adopting the 6AMLD directive. However, authorization services may make it simpler for businesses to abide by the law.
Account takeovers, chargebacks, and other fraudulent activities are on the rise. Unfortunately, con artists have evolved increasingly complex means to achieve their wicked goals, making it critical for all businesses to prevent these frauds. Today's standard identification verification procedures are insufficient. Address verification system can improve the efficiency of the KYC procedure. It has the potential to assist all e-commerce enterprises in reducing refunds and fraudulent transactions.
Businesses require an AI-based address verification solution to prevent fraud and protect the platform. The technology simplifies the customer onboarding process and guarantees that procedures operate smoothly with the aid of many advanced models.