Address verification service definition
Address verification service (AVS) refers to a tool used to validate a postal address provided by the customer and reduce errors in shipping and billing. It was initially developed by postal authorities and later expanded upon by private companies specializing in data validation and verification.
AVS helps ensure the accuracy of data entered into a system. It also helps companies and government institutions prevent fraud, streamline route planning, and ensure timely delivery. However, it can also provide some challenges when integrating with existing systems, especially legacy systems. Also, AVS is reliant on a third party to provide updated and complete addresses.
See also: address space, anti-fraud system
How does an address verification service work:
- 1.The user enters their address into a form during an online transaction.
- 2.The AVS system checks the entered address against a database of valid addresses provided by a trusted source, such as a postal service.
- 3.AVS ensures the data entry is used in a correct format and, if needed, corrects typographical errors.
- 4.The user’s address is again compared with the entries in a database of valid addresses.
- 5.The system responds to whether the address is valid or not. In some cases, it can be set up to suggest corrections, calculate shipping costs, and verify billing information.
