Does Billing Address Matter? Online Shopping FAQs Answered

Does Billing address matter? Why do companies expect the correct billing address? And other similar questions are answered below.

Billing address is that address linked to the payment mode you are using to make a payment. These generally include Debit or Credit cards. These addresses are a sort of check that the companies perform to ensure that the payment is made is not a fraud. 

does billing address matter for online shopping

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Answered: Does Billing Address Matter?

Why is it important to keep the updated billing address?

This is one of those essential questions that comes to the mind of every individual. There are circumstances like moving to a different property in the same city or a different city altogether. It is advisable to get in touch with the issuing bank as soon as possible to get the address updated; failing to do so might cause problems during the payments in the future.

Consequences of entering incorrect billing address

Here are some of the consequences that one might have to face if eth incorrect billing address is entered while making a payment:

  1. Order Cancellation: This happens very rarely but is one consequence that one might have to face. If the wrong address is entered at the time of payment, the company might cancel the order because of the authorization failure from the bank.
  2. Alerts: This happens most commonly with the ones who enter incorrect addresses during the online purchase. The company either alerts right away with the discrepancy or notifies through an email about the incorrect address, which might have been entered by mistake.

Why do companies expect the correct billing address?

While we have moved a lot further in terms of online things, all this has also given rise to the security issues involved, especially online payments. Hacking the cards is one of the significant concerns that is being faced. This is the reason companies do not want themselves and their clients to get into any such troublesome situation.

Asking for the billing address confirms that they tend to reassure that the payment being made is not a fraud. Here are few things that the companies expect when they ask for the billing address on the card:

  1. Name The name that you enter while making a payment should match the name on the card. If the two do not match, in any case, the payment would either be rejected straightaway, an alert would be sent, or the order would be canceled in the later stages.
  2. Address: The address is the other main thing that the companies keep a proper check at. If they find a discrepancy with the address entered in the payment details, they will take necessary actions, including canceling your order.

Address Verification Service

This is the process in which the name and the address on the card are verified by the company receiving the payment. These details are checked with the issuer of the card, which is generally the bank.

Retailers can check the details through available channels, which solely depends upon their choice.

But then the question arises when there are so many different AVS services, how do the retailers or the companies decide which one to go with? Most of these are paid services, and the more expensive they are, the higher are features and the securities they bring along. Retailers check the features they look forward to and check their pocket size and budget to go with one of these services.

Concluding: Does Billing Address Matter when your Order Online?

While the companies use the addresses to make sure that the payment that is being made to them is cent percent genuine, they also use these addresses to send the paper bills and the bank statements. So, they need to make sure that the billing address is correct and accurate. Also, sometimes confusion arises between the billing address and the shipping address. Both of them are absolutely different. Though both of these can be the same, even if they are not, there is no problem at all. All that needs to be taken care of is that they should be correct.

Generally, what has been seen is that if the billing address does not match the address on the card, the retailer or the store manager declines the transaction straight away and intimates the actual card owner about the misuse of the card. This can be done by contacting the car owner directly or through the issuing bank.