How Does Address Verification Work?

Whether you collect address data in digital environments, CMS systems or call centers, or use existing address information to update databases, a robust, real time address verification solution is a critical component of your business. It ensures that your address data is accurate, standardized and complete. This can improve customer service and experience, enable better data-driven decisions and reduce costs. For example, returned shipments are one of the biggest pain points that businesses face and can result in lost revenue, additional postage and re-assignment of staff and resources. Address verification can help you avoid these costly problems by ensuring that the addresses you collect, use and store are valid.

How does address verification work?

The basic process of address validation involves software that makes an API call to a reference database that confirms that the street or postal address exists. It also verifies that the inputted data meets standard formats. Some software solutions also have capabilities like predictive type ahead (or address autocomplete) to suggest the correct address as a user is typing, making it easier for them to fill out forms and complete their transaction. This is useful for mobile digital environments prone to typos, and for making the process of entering an address quicker.

Some address verification services can even validate, cleanse and standardize data as it’s uploaded or downloaded into a database. Others offer the ability to verify and update addresses in real time on an individual basis through API integration. For regulated industries, this can be particularly important, as it reduces the amount of proof of address documentation required from customers or users during onboarding.