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Address verification is usually considered the same as Address validation. However, they both are different terms and are employed for different purposes. To simply state, address verification is designed to prevent credit card fraud while address validation is employed to confirm if the shipping address is correct or not. 

This simple elaboration might help to get a little idea but is not enough, so to completely demonstrate the difference, we will first look at the difference between verification and validation.

Difference between Verification and Validation

Verification is the process of simply asking someone to prove they are who claim to be. Verification is necessary for businesses as it provides an extra layer of security. Validation, on the other hand, is simply used to validate that the information provided by the user is added properly. Validation is mainly used to validate the shipping address.

The “Fast Lane Answer” to Address Verification and Address Validation 

Online Address verification for online marketplaces is designed to prevent credit card fraud. It ensures that the shipping address for the item purchased is the same as the address mentioned on the credit card used for shopping.

As the usage of mobile phones for shopping increased, online businesses decided to implement an online address verification system to check if the person is who they claim they are.

When a person shops at the online store, the process of checkout person is sent to the merchant portal, where the details of the credit card are to be entered to authenticate the purchase. At this process, the person is required to upload a picture of a valid ID document that contains their address. The address from the Identity document is matched against the address provided by the user.

Address verification is very important and implementing online address verification system for your business will help prevent identity theft and credit card fraud. However, if the process of verification is too long it will annoy the user and they will opt out of the cart without purchasing. This is where AI-based address verification solutions assist businesses to make the user experience smooth and frictionless. AI-based online address verification solutions make the verification process fast and accurate, while respecting user privacy.

Conversely address validation is simply an online version of asking the postman if the address mentioned here is valid or not. Address validation services such as USCPS helps businesses to identify whether the address entered by a user is valid or not. Address validation is mainly used to rectify errors in the shipping address. Every day a lot of items purchased online are either delivered to a wrong address or are not delivered at all. This causes the online firm a great amount of shipping cost and in some cases product cost. In order to avoid these issues and save cost, many e-commerce websites use address validation services.

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