Many payment processors ask for a billing postal code at checkout because it helps to verify that you are the cardholder and that the transaction is legitimate. In some cases, the billing postal code may also be used to verify your identity when making a purchase over the phone. For reference, the billing postal code and billing zip code are the same things, and these terms may be used interchangeably.
What Are Billing Postal Codes?
Billing Postal Code Table of Contents
When you make a purchase online, you will often be asked to provide a billing postal code. This is an important security measure that helps to protect your personal information and ensure that your order is processed correctly. The billing postal code is the code associated with your credit card’s billing address. More simply stated, it’s the zip code of the address that is on your credit card account.
What Are Billing Postal Codes Used For?
Billing postal codes are one of many security features that are used to protect cardholders from potential fraud. They are part of a process called Address Verification or AVS.
Address verification is a cybersecurity protocol that allows merchants to confirm that a purchase is legitimate prior to completing the transaction. While it’s not a fool-proof method, it does help decrease fraudulent transactions. Here’s how it works:
- A cardholder swipes, or enters card information into a payment portal to pay for products or services.
- The payment processing system reads the card and asks for a zip code.
- The cardholder enters their postal code into the system.
- The payment processor then compares the zip code to that of the address on file for that card. If they match, it is likely that the transaction will be approved. If not, it may be declined.
If you’ve ever tried to use your card for a purchase and had it declined for no apparent reason, this might’ve been the issue. Consumers often forget to update their billing address when they move to a new home, and their cards may be declined as a result. If this happens to you, simply log in to your online account, or call your bank and have the information updated.
How Do I Find My Billing Postal Code?
The easiest way to find the billing postal card for a particular card is to look at the bank statement. Log in to your online account or find a paper statement for your account. The address and postal code on that statement is the billing postal code for your card. If the address is old or inaccurate, you may want to consider updating it with your bank.
What’s the Difference Between My Zip Code and a Billing Postal Code?
A postal code, or zip code, is a 5-digit code that designates a particular area of the country. Postal codes are used by the United States Postal Service and other mail and package carriers to sort and deliver mail to the correct address. They are also used to calculate rates for shipping and handling. In some cases, they may be used to identify what types of services are available in various geographic areas.
A billing postal code, as previously described, is used as a security feature on a credit or debit card purchase. The billing postal code is specific to the card account and its associated address. For business owners, the billing postal code and physical address are often different. This is an important distinction when trying to make or authorize purchases using a credit card.
Most postal codes, both personal and billing, have an additional four numbers that can be added on to the end of the 5-digit code. This additional 4-digit code represents a specific delivery route or area. This is generally used for delivery purposes and has nothing to do with your physical address or the billing postal code on your credit card.
