Zip code verification is a process that helps businesses verify the accuracy of their addresses. This ensures that their mail is delivered to the correct location and eliminates costly mistakes. In addition, validating addresses reduces cart abandonment and improves customer loyalty.
Typically, the ZIP Code is five digits. It can also be expanded to include four more digits, such as a hyphen. The extra digits add a layer of data that helps identify office buildings, city blocks, and streets.
When entering an address, there are a variety of ways to get it right. You can manually type it in, or you can use a ZIP code verification tool. If you choose the latter, it can be much faster. However, it can be a risk if the information you have is outdated.
The Zip code is also used by the United States Postal Service (USPS) for mail delivery. A ZIP+4 code, a four-digit code at the end of a five-digit ZIP Code, defines the delivery location.
Businesses often use Zip Codes to make important marketing decisions. They can use them to segment sales data into regions. Using a valid ZIP+4 code means that the address will be matched and you will qualify for special mailing rates.
Address verification is a key component of credit card processing. Using a wrong ZIP Code can result in longer shipping times and higher postage costs. Having a valid address also prevents mail from being returned.
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