Address Validation with Ekata


Learn how to use Identity Check for address validation to fight fraud, reduce your customer insult rate and maintain good customers.

One of the top concerns for merchants shipping goods is whether the address to where they are shipping is valid or not. If valid, is it currently receiving mail? And finally, but probably the most important item is whether the person/business whom they are shipping the good to even stays there. All in attempt to reduce fraud and chargebacks to the business. Address validation is one way to confirm if the transaction is legit. But certainly not enough. What if the address to where you are shipping is legit and the owner stays there – but is in fact a fraudster? Is it a case of a stolen credit card and thus the billing details were fraudulent? What if the transaction is coming from somewhere in Africa when the shipping address is in Kansas? Confirming that the order is not fraudulent requires a lot more than just address validation.

The other side of the spectrum is where merchants are rejecting transactions with suspicion of fraud. We see merchants who reject transactions just because the billing or the shipping address is outside US. Or because it is being sent to a freight forwarder. According to the Merchant Risk Council’s 2015 Global Fraud Survey, more than 10% of merchants report a customer insult rate in excess of 20%. In addition, 37% of merchants do not track false positives. While a single transaction decline may not present a substantial monetary loss, the risk of reduced customer lifetime value can be very substantial. For some industries, this cost can be upwards of 10x the transaction amount. Reducing the false positive rate and maintaining good customers will be main focuses for merchants as consumers continue to shift to online and mobile commerce.

Ekata Identity Check


One way to reduce customer insult rate as well as fraud and chargeback rate is to integrate the right identity data attributes into your decision engine within your layered process.Ekata Identity Check™ provides data around phone, name, physical address, email, and IP, allowing complete identity verification around five data points in one search. These data points can help provide positive and risk signals for transaction decisioning.


How address validation improves online transaction processes

It is difficult for fraudsters to gain access to all of a customer’s contact data. Identity Check performs several address validation cross-checks to ensure the transaction ‘story’ makes sense:

  • Phone-to-Address
  • Address-to-Name
  • IP Distance from Address

This is in addition to simple address validations that include:

Identity Check Risk Signal: Invalid Data


USPS tells us if the address is deliverable. An address that is not deliverable is a red flag.

Identity Check Risk Signal: Data Mismatch


Ekata returns whether an address is a commercial mail drop, PObox throwback, PObox, multi-unit, or single-unit. One common fraud technique is to provide a different unit number for a single-unit. This is a strong risk signal.

Identity Check Risk Signal: Non fixed VOIP Phones

Usage type

This flag shows a merchant if the address belongs to a “business” or “residential” location.

Identity Check Risk Signal: New Email Domain


USPS verifies that the mail will be collected if delivered. A lot of fraudsters will have physical goods delivered to abandoned homes or houses recently foreclosed.

All of this just with one address attribute. Combine that with other identity data attributes and Identity Check can provide the most comprehensive Identity Verification in the market.


Identity Check


Integrating Ekata Data

Ekata can help your business determine what risk signals provide the most lift in your fraud process. Here are the two ways your team can access our data:

1. API: We have an easy to integrate, RESTful API with a JSON output. We are fully integrated with the top three fraud platforms in the e-commerce industry: Accertify, CyberSource, and Kount. We also make it easy for your developers to integrate the API into your current systems with our online resources. We have several different API keys available depending upon your data needs.

2. Pro Web: Our web interface is a simple and easy to use platform where users can interact and find the data they need. We have an awesome interface for e-commerce merchants that is accessible with a single-click from many e-commerce and fraud platforms.

Want to learn more?