Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.
The Billing Address is the address registered with the payee's bank or credit card company and is typically different from the shipping address. In international trade and e-commerce transactions, the billing address is primarily used to verify payment information and prevent fraud and credit card theft. If the billing address doesn't match the card-issuing bank's information, the transaction may be rejected or even delayed. For cross-border e-commerce businesses, accurately collecting and verifying billing addresses improves payment security and customer trust, while reducing chargebacks and disputes. Many payment gateways (such as PayPal and Stripe) use an Address Verification System (AVS) to compare billing addresses with credit card information to confirm transaction authenticity. Understanding the role of the billing address when processing international orders can help mitigate risk and ensure smooth transactions.
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