Secure payment – How credit assessment and address validation work

Secure payment – This is how credit assessment and address validation work?

Credit assessments and address validations are important means for protection from payment defaults, unnecessary returns and deception. To ensure an optimal experience in the web shop, it is recommended to provide the types of payment, that are preferred by the customer. If customers order their goods on account or pay in instalments, no company can be really sure about the payment. Therefore, it is important, to check the creditworthiness, or solvency of the customers. This minimizes the risk of payment defaults.

 

Also the address validation may save the distributor from unnecessary additional costs. Invalid or outdated customer addresses result in unnecessary returning costs, because many customers forget to communicate their new address after relocation. Often, debtors even deliberately act in this way, because then invoices and reminders are returned to the distributor with the endorsement “moved to an unknown address”.

How does credit assessment and address validation work?

As a rule, the credit assessment is subject to credit agencies, as for example Boniversum or SCHUFA. Here, the seller is notified about the former payment behaviour of the possible customer. Usually, this check considers qualitative (e.g. market opportunities and integrity) as well as quantitative (e.g. profitability and income level) criteria. Then, comparative evaluation will be used for decisions on contract completions. For address validation customers can rely on the support of experts like PAYONE in cooperation with Boniversum. These check the new or current addresses of the buyers with the postal address validation. In case of spelling mistakes the corrected addresses will be returned, in case of unknown addresses a new inquiry will be recommended. With an identification the assessing companies have the possibility to find out, if the potential end customers are already known in their data base. Also, the identification of special addresses like JVA, hospitals, gastronomy and further categories is possible.

 

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About PAYONE

PAYONE GmbH provides business solutions for automated and comprehensive processing of all payment processes of E- and M-commerce. As an associated company of Deutsche Sparkassenverlag, the payment service provider is a company of the Sparkassen-Finanzgruppe and registered as payment institution by the Federal Financial Supervisory Authority.  The range of services includes the acceptance and the processing of national and international forms of payments as well as additional services for fraud prevention and for automation of all payment processes. Standardized interfaces and extensions allow a simple integration into existing E-Commerce systems as well as IT systems with highest security standards. Payment is one of the 50 fastest-growing technology companies in Germany and serves more than 4.000 E-Commerce customers from various sectors and countries, including a large number of well-known companies, such as Immonet, Globetrotter, HD PLUS, Fujitsu, Hawesko, Sony Music and Hallhuber. PAYONE employs more than 150 people.