
AVS is a fraud prevention option that cross-checks the cardholder’s billing address at the time of a transaction with the records at the issuing bank. It adds another security feature to combat increasing e-commerce fraud and reduces unauthorized transactions.
Such solutions like AVS came about because of the gaps in traditional verification methods, like depending upon CVVs only. Alternatives include Card Verification Methods, better known as CVMs, which rely on a PIN or biometric but may miss address-based fraud.
The numbers say it all
The global address verification software market has seen quick growth due to increasing demand for the technology and a rise in innovation. Here are a few important statistics:
- Market size in 2023: $10.61 billion.
- Market projection for 2030: $23.10 billion.
- Growth rate: CAGR of 11.75% from 2023 to 2030.
This technology standardizes the address data format and confirms user input against a reliable source. Market drivers include:
- The rise in e-commerce.
- Global data protection compliance.
- Demand for geocoding and mapping tools.
Adoption is exceptionally high in industries like banking, healthcare, and government. Emerging trends include AI-driven solutions and cloud-based scalability, and there is vigorous market growth in North America and the Asia-Pacific regions. The leading providers include Experian, Informatica, and Loqate.
What the industry leaders have to say
Address verification isn’t just a nice-to-have – it’s hassle-free deliveries. By catching sneaky errors like ZIP code mix-ups and wonky global formats in real time, we keep customer data spot-on. Pair that with smart logistics, and boom – fewer failed deliveries, happier customers, and way less ‘return to sender’ drama.
Address verification is a detective for delivery mishaps. Spotting ZIP code slip-ups and global formatting flubs in real time slashes failed deliveries and keeps customers coming back. The best businesses swear by this sharp-eyed approach.
Real-world use cases
FindPeopleFast met the increasing demand for personal information lookup and used address verification to enhance the accuracy of the data. They realized how meaningful addresses were to the integrity of the platform. Verifying the deliverability of the addresses in their database led FindPeopleFast to confirm that the data they provided customers were reliable, therefore boosting trust and customer rapport.
On the other hand, LeadLeaper, a lead generation company, integrated address verification and improved the accuracy of its cold outreach by correctly validating the contact addresses in their database for better response rates.
The outcome? Climbing marketing campaign results.
Solving the biggest hurdle in AVS
Address verification systems can be challenged by outdated or inaccurate data sources, leading to verification errors. For instance, if a customer has recently moved, the system might still reference their previous address, resulting in incorrect verification. This reliance on potentially obsolete data underscores the importance of regularly updating information within these systems.

A quick workaround?
- Install real-time address verification systems (like Wiza) integrated with regularly updated and reliable data sources.
- Machine learning algorithms are also verification frontrunners as they predict and morph to customer data changes for more sound validation.
- Regular system audits and periodic data refreshes reduce reliance on decayed information.
Author
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Samantha has over seven years of experience as both a content manager and editor. Bringing contact info to life is the name of her game. Some might say she's a bit 'SaaS-y.'
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