How To Use Address Validation Via API To Improve Service & Your Bottom Line

Address validation may seem like an unnecessary extra expense. After all, your customers are paying money for your goods and services, so why would they give you the wrong address?

It’s not your customers you need to worry about. It’s the ones looking to defraud the system.

It’s surprisingly easy to use someone else’s credit card and a delivery address that doesn’t match the card address. In short, thieves can use a stolen credit card and have the goods sent somewhere else.

What Is Address Validation API?

Address validation API is a type of software that you can integrate into your current customer data and ordering system.

The software uses an array of parameters to verify an address. For example, it knows the format of an address should be: it’s different across the globe.

Well-developed API systems, such as egon.com, will find the latitude and longitude coordinates for an address, verify that the name associated with an address matches the name on the payment card, and even verify that it’s a valid address.

The software will help to ensure you’re sending goods to a real address and that the address matches the cardholder’s address.

Why This Matters

When you send goods to someone and they’ve used a stolen credit card, the real card owner will eventually see the issue and dispute it. You’ll have to repay the funds.

That means, your business has sold its product for nothing. Alongside this, it takes time to sort the issue out which is effectively another cost. These costs will have a direct, negative effect on your bottom line.

While the loss of product has a direct effect on your profits, there will likely be further issues as your business may develop a bad reputation. This can lead to a reduction in customer numbers and, again, a reduced bottom line.

In short, it’s in your interest to use address validation API.

The Benefits Associated With Address Validation API

As you can see, using address validation API will help you to avoid losing money to fraudsters. There are several other benefits:

• Better customer service

Address validation software doesn’t just check the address in real-time. It can also suggest an address. For example, if you enter a postcode it can offer a list of addresses within that postcode.

A customer can simply select their address and all the relevant fields will be completed for them. It makes the ordering process easier and faster. That’s a win for your customers. You may be surprised by how often a customer will accidentally input their address incorrectly!

They are then more likely to use you again and recommend your business to friends as they’ll be impressed with the service they receive.

That’s good for business!

• Fewer returns

Returns are costly. When a customer gives an incorrect address they’ll still expect the parcel to be delivered on time. That won’t happen and the parcel will likely be returned to you.

That means you have to resend the parcel to the correct address, resulting in additional postage charges, staff time costs, and a disgruntled customer. That won’t help your reputation.

Fewer returns mean happier customers, a better reputation, and reduced costs.

• Lower costs

This is perhaps the biggest benefit of all. As already illustrated, they are direct benefits to customers and your costs.

An additional cost benefit is the elimination of duplicate customer records. The verification software will know if an address is already being used by its database and can redirect the customer accordingly.

That makes a difference in time and costs when you’re engaging in any marketing or promotional campaign. After all, you don’t want to chase the same customer twice with the same campaign just because they have two accounts.

Summing Up

Address validation API offers an array of benefits that easily outweigh the costs of adding it to your system.

This includes improving your ability to predict accurate delivery times, ensuring your parcels always reach the right destinations, and generally improving the service you offer your customers.

It’s effortless to install and use. If you haven’t already invested in address validation API, it’s time you did.