Mar 5, 2021
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When you sign up for a credit or debit card, you’ll give your credit card issuer or financial institution a mailing address where your statements can be sent. Your billing address is the location where you receive your credit card statements.
But it also serves a few other important purposes.
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A billing address helps your credit card issuer authorize you as a new cardholder. It also provides the company with a location to send you your new card, as well as important billing or account updates.
More: How to compare credit card offers
Is billing address the same as shipping address?
When you order a product online, the shipping address may not be the same as your billing address.
You may use your credit card for purchases sent directly to others, or to a secondary residence. But your credit card issuer will use your billing address as its default address for you, unless you request a preferred address.
The billing address ZIP code and other details can be used to help verify your identity when using the credit card in question, through using an Address Verification System (AVS).
An AVS compares your card’s billing address to the address you (or someone with your card’s information) has filled in for an online transaction. If the two addresses don’t match, the system should notify the vendor through a code.
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This helps prevent identity theft.
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Billing address adds security
Theoretically, if someone steals your credit card information and tries to use it online to buy, say, a smart watch, the person will have to fill in a billing address. If it doesn’t match the address your credit card company has on file, the transaction should be flagged through AVS.
This extra security measure helps ensure that if your credit card information is ever stolen, your issuer will be able to track illegitimate purchases easily and efficiently. It may even lead the company directly to your fraudster.
More: Privacy helps to secure your online purchases and billing address information. Sign up today and protect your privacy.
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Sigrid is a deputy editor on the Moneywise team, where she has also worked in a number of editing and reporting roles. She has 5 years experience writing about personal finance and takes great pride in demystifying complex financial issues and finding the personal in personal finance topics.
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