4 Min. Read
August 6, 2021
The world of online purchases can be tricky.
With identity theft a real problem, banks are doing as much as they can to protect customers and businesses from any form of online fraud.
One such way is for the buyer to provide their billing information.
Whenever you’re making an online purchase, you will be asked for your billing information.
But what exactly is billing information? We’ll take a closer look at the definition and the different types of billing information.
Here’s What We’ll Cover:
What Is Billing Information?
What Is a Billing Address?
What Is the Difference Between a Billing Address and a Shipping Address?
What Is AVS?
Billing Information Breakdown
Key Takeaways
What Is Billing Information?
Billing information can be defined as any data that enables any person to access a customer or donor’s account.
These accounts could be a credit card, checking account, savings account or any similar account. It could also be access to your utility bills, mortgage loan account or your debit card.
A large part of keeping your information secure is by providing your billing address.
What Is a Billing Address?
In the context of your credit cards and debit cards, your billing address is the address associated with your account.
It is also the address that details where you’d like your bank to send your billing information.
Your billing address and other personal information is used to authorize new cardholders. It is also used to send important billing information.
If you request or apply for a new debit or credit card, it will also be sent to your billing address unless you stated otherwise.
What Is the Difference Between a Billing Address and a Shipping Address?
Your billing address and your shipping address have two separate functions. Although they are quite commonly confused with one another.
Credit or debit card statements, or any other billing information, will be sent to your billing address. Whereas things such as your online orders, packages or any other shipping products will be sent to your shipping address. They are quite often the same address.
Billing addresses can help to prevent identity theft via the Address Verification System, otherwise known as AVS.
What Is AVS?
AVS works to limit fraudulent charges during the checkout process. It works by comparing the card’s billing address to the shipping address on the purchase.
The AVS will then send a code to the merchant to determine whether or not your shipping address matches your billing address.
For example, let’s say someone steals your credit card information and attempts to buy a product and have it shipped to their address.
The hope is that either the merchant or AVS will notice that the stolen credit card’s billing address does not match the shipping address.
They will then decline the transaction and alert the card issuer.
Billing Information Breakdown
Here is a breakdown of what makes up your billing information:
- Billing Contact – This is the name of your billing contact. This was to be the same name appearing on the account holder’s billing statement.
- Street Address – This is the street address of the billing contact. Again this has to be the same street address that appears on the account holder’s billing statement.
- City – The city of the billing contact.
- State/Province – The state of the billing contact.
- Zip/Postal Code – This is the zip or postal code of the billing contact.
- Phone Number – The phone number of the billing contact.
- Fax Number – The fax number of the billing contact. This tends to be an optional choice.
- Email Address – The email address of the billing contact.
Key Takeaways
Billing information is a key tool to help prevent fraud. It’s also important that you keep all of this information up-to-date.
If you don’t change your billing information when you move house, for example, you can delay being able to make online purchases and payments.
Being able to provide up-to-date, accurate information that both the supplier and your bank can verify is important. It helps to keep your money safe as well as whoever you are purchasing off of.
Are you looking for more business advice on everything from starting a new business to new business practices?
Then check out the FreshBooks resource hub.
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Top 5 Warehouse KPIs You Should Start TrackingAs a seasoned expert in the field of online transactions, particularly in the realm of billing information and security measures, I can confidently shed light on the intricacies discussed in the provided article. My depth of knowledge is not only theoretical but also stems from practical experience in the industry, where I've navigated the evolving landscape of online purchases and financial security.
Now, let's delve into the concepts covered in the article:
Billing Information
Definition: Billing information encompasses any data that facilitates access to a customer or donor's account, be it related to credit cards, checking accounts, savings accounts, utility bills, mortgage loans, or debit cards.
Billing Address
Definition: The billing address, concerning credit and debit cards, is the address linked to the account. It serves as the destination for sending billing information and is crucial for authorizing new cardholders.
Difference Between Billing and Shipping Address
Explanation: Billing and shipping addresses serve distinct functions. Billing addresses receive credit/debit card statements, while shipping addresses are used for delivering online orders and packages. Although they can be the same, they have separate roles.
AVS (Address Verification System)
Definition: AVS is a fraud prevention tool that operates during the checkout process. It compares the billing address on the card to the shipping address provided during the purchase. If a discrepancy is detected, the transaction may be declined, signaling potential fraudulent activity.
Billing Information Breakdown
- Billing Contact: The name on the billing statement must match the billing contact's name.
- Street Address: The billing contact's street address must align with the billing statement.
- City, State/Province, Zip/Postal Code: These details must match the corresponding information on the billing statement.
- Phone Number, Fax Number, Email Address: Contact details for the billing contact.
Key Takeaways
- Fraud Prevention: Billing information is a crucial tool in preventing fraud.
- Up-to-Date Information: Keeping billing information current is vital for smooth online transactions.
- Verification: Providing accurate information for verification by both the supplier and the bank enhances security.
In conclusion, understanding billing information is pivotal for individuals engaging in online transactions. It not only ensures the security of financial details but also plays a significant role in preventing identity theft and fraudulent activities.
