What is Address Validation Service (AVS)

What is AVS?

AVS is a comprehensive system utilizing advanced algorithms, databases, geocoding, or machine learning techniques to make sure customer information is accurate, complete, and current. This process involves comparing the customer's address against authoritative data sources, eliminating inconsistencies to enhance the overall quality of the data.

What does AVS stand for?

AVS stands for Address Validation Service.

What is an AVS check?

An AVS check confirms that the address and zip code of the customer used in a transaction matches what is on file with their bank. 

How does AVS work?

Address Verification Service follows a systematic approach to checking data accuracy. The underlying technology employed varies depending on the service provider or software used. Here are three critical components involved in AVS.

●      Database validation: AVS relies on databases maintained by postal authorities, government agencies, or reputable data providers. The address is cross-checked against these sources during verification to confirm it is valid and correct.

●      Geocoding: This technique converts an address into geographic coordinates (latitude and longitude) to match the address given by the customer with the corresponding location on a map. The process validates the address by pinpointing its exact geographical position for delivery and logistics planning. 

●      Machine learning: Some advanced AVS solutions use machine learning algorithms during address validation to learn how to identify and correct common address errors or inconsistencies by analyzing patterns, historical data, and various data points. 

With Experian, our AVS cross-references postal data from more than 240 countries. Whether it's an address in the United States or another country, the system utilizes the most up-to-date USPS® data to validate. The system meticulously scans each address to detect incorrect formatting, mismatches between the city and postal code data, and spelling errors. Identified errors are promptly fixed so the address is accurate for your next package delivery, marketing flyer, or informational letter.

The versatility of Experian's validation tools makes them ideal for any organization, as they seamlessly integrate with your favorite CRM or ERP for a smooth implementation process. Additionally, you can choose the preferred address format for your specific needs. There is also the option for domestic and international address verification, allowing you to reach customers worldwide with confidence effectively. In terms of real-time address verification, Experian offers an address validation API, further enhancing the accuracy and efficiency of the process. By utilizing Experian's CASS™-certified solution, you can apply for mailing discounts as a cost-effective choice for your mailing operations.

Embrace the power of Experian's Batch Address Validation system for your business needs.

Why is AVS important?

In today's digital world, customer experiences and operational efficiency are paramount. For customers, AVS provides additional security against credit card theft attempts. As a business, you can utilize the AVS response signal to enhance your risk scoring and protect yourself from chargeback requests, which can be costly and harmful to your reputation with banks. Using a GeoIP database to identify potentially fraudulent activity, You can cross-reference the billing address with the customer's IP address location. Overall, AVS is an excellent addition to any comprehensive fraud prevention strategy.

How AVS benefits your business

Aside from preventing fraudulent transactions, ultimately keeping customers safe and happy, and maintaining a good reputation with banks, there are various benefits to implementing AVS into your business. The following are a few additional reasons why AVS can assist in the success of your business.

1. Enhanced data quality

AVS is pivotal in maintaining high-quality address data by validating and standardizing addresses. It helps businesses minimize errors and eliminate duplicate entries so their customer information is up to date. Using AVS means companies can rely on accurate address data, enabling better decision-making, data-driven insights, and improved overall business performance.

2. Delivery success rates

Accurate address data directly impacts product deliveries' success by significantly reducing failures, return-to-sender instances, and customer dissatisfaction. Increasing delivery success rates ultimately improves operational efficiency, reduces costs, and builds customer loyalty.

3. Customer experience

AVS provides a seamless and hassle-free customer experience by confirming that the address is accurate during the ordering, shipping, and billing, leading to smooth transactions and timely deliveries. Customers can receive their products or services on time and at the correct location, increasing customer loyalty and positive brand perception.

4. Operational efficiency and cost reduction

Incorrect addresses can cause issues, including returned mail, wasted resources, and additional customer service efforts. Implementing AVS allows businesses to streamline operations, ultimately resulting in cost savings.

5. Regulatory compliance

Accurate address data is essential for compliance in industries with regulatory requirements, like financial services and healthcare. AVS assists in meeting these standards so sensitive information reaches the right individuals or locations and helps businesses avoid legal problems.

6. Marketing optimization

AVS enables businesses to enhance marketing efforts through accurate targeting and segmentation. Validating addresses lets companies effectively reach their intended audience, avoid wasted marketing spend, and increase the return on investment.

How to implement AVS in your business

Implementing AVS in your business means careful planning and execution. Here are a few factors to consider when implementing AVS into your business.

1. Identify your needs

Determine your business's specific needs when it comes to addressing validation. Think about the volume of addresses to process, integration capabilities with existing systems, and compliance with industry-specific guidelines.

2. Choose the right AVS solution

There are various options for AVS, so you should research different providers to find the one that best aligns with your business needs. Evaluate features such as robust data sources, advanced validation techniques, scalability, and ease of integration.

3. Integration and testing

Work with your IT team or software developers to integrate the chosen AVS solution into your existing systems or applications and conduct thorough testing for seamless functionality and compatibility.

4. Training and Education

As this is a new system, your employees must understand how AVS works and alleviate their workload. Train employees on the AVS system's proper usage so they know the system and how to interpret validation results effectively.

5. Ongoing maintenance and updates

Regularly review and update your AVS to keep up with changing address standards, data sources, and technological advancements. Incorporating this practice will help maintain the accuracy and reliability of your address data.

How Experian can assist with implementing AVS

Accurate address data is for businesses in the digital era. Address Validation Service (AVS) empowers organizations to check an address's authenticity, correctness, and completeness. By implementing AVS, businesses can improve delivery success rates, enhance customer experiences, reduce operational costs, act according to regulatory compliance, optimize marketing efforts, and unlock valuable insights from reliable address data. 

Take a step towards protecting your data and maximizing its potential by trying Experian’s Address Validation services.