Address verification plays a significant role in identity verification, making it a crucial verification criterion for any service provider. While documents like Aadhaar or passport can be used to verify an individual’s address, they can only determine if the residence matches the person’s identity. They do not confirm whether the person currently resides at that location or not. This may lead to several issues, especially when conducting a background check or credit card transactions.
Physical verification by a field agent is the only reliable way to accurately verify an address. Nevertheless, most countries have national address databases, but developing a similar database in India is a challenging task due to the country’s diversities in languages and cultures.
The Address Verification Service (AVS) provided by credit card processors and card-issuing banks to merchants is an excellent tool to prevent credit card fraud by detecting suspicious transactions. The AVS checks the billing address provided by the card user against the cardholder’s billing address on file with the bank. The merchant can use the response code from the bank to decide whether to accept or reject the transaction.
What is address verification?
Address verification is the process of verifying if an individual’s given address is valid or not.
What is the Address Verification Service (AVS)?
The Address Verification Service (AVS) is a tool provided by credit card processors and card-issuing banks to merchants to detect suspicious credit card transactions and prevent credit card fraud.
Why is address verification necessary for identity verification?
Address verification is an essential aspect of identity verification as it determines whether the individual resides at the address provided or not. This helps detect fraud, ensures accurate background checks, and verifies credit card transactions.
Address verification is a crucial criterion for identity verification, especially when conducting background checks or credit card transactions. While address proofs like Aadhaar or passport only match a residence to an individual, physical verification by a field agent is the only reliable way to verify the address accurately. The Address Verification Service (AVS) provided by credit card processors and card-issuing banks to merchants helps prevent fraud and detect suspicious transactions to ensure secure credit card transactions.