Billing Address vs. Shipping Address: FAQs Answered for Small Business Owners

The difference between billing and shipping addresses may seem obvious, but there's more to it than meets the eye. Getting these details right can make a big difference in keeping your business running smoothly and your customers happy. This article will tackle the most common questions about billing and shipping addresses, uncovering their roles in verification and delivery.   

Difference Between Billing Addresses and Shipping Addresses

Verification vs. Delivery

• Billing Address: Authorizes credit card transactions when the physical card is not present.

A billing address is the official home address on file with the credit card company. When placing an online order, the billing address must match the information on file, or the transaction will not go through.

• Shipping Address: The location where the order will be delivered.

The shipping address could be a customer’s primary residence, workplace, or to another person altogether.

When Are They Different?

While there are countless reasons for a billing address and shipping address to be different, the most common scenarios include:

• Sending a Gift: Your customer buys a gift online and sends it to the recipient.
• Avoiding Porch Piracy: Package theft is a real problem - especially around the holidays. Your customer might have packages sent to another location when they can't be home for delivery.
• Customer Relocates: Your customer moves to a new home and forgets to update their billing address with the credit card company. In this case, the billing address on file will be the old address, while the shipping address is the new one. 
• Second Homes: Your customer has a second home and uses the address of their primary residence for billing and the address of the second home for shipping.

Commonly Asked Questions: Billing Address vs Shipping Address

What should I do if a customer changes the shipping address after placing the order?

Establish a clear policy for address changes to safeguard your customer’s personal information and protect yourself from costly scams.

• Confirm the address change request directly with the customer through an email address or phone number provided with the original order.
• Check the order status immediately to determine whether changes are still possible.
• Update the shipping address in your system and notify the shipping carrier.

How can I minimize fraud related to billing and shipping addresses?

• Use an Address Validator to verify the billing address.
• Require customers to enter the CVV code for credit card transactions.
• Flag orders with different billing and shipping addresses for manual review.
• Monitor for unusual order patterns, such as multiple orders to different addresses using the same billing information.

Can I ship orders to PO Boxes?

Yes, but not all shipping carriers will deliver to PO boxes. USPS delivers to PO boxes, but many other carriers, like UPS and FedEx, do not.

How should I manage addresses for international shipping?

Make sure your e-commerce platform is set up to accept international address formats. Check that your shipping carriers can deliver to the countries you ship to, and be aware of any customs or import rules.

What if a customer enters an incorrect shipping address?

If a customer enters an incorrect shipping address, the package might end up in the wrong location or returned to sender. To minimize these issues:

• Include the shipping address in the order confirmation email and prompt your customers to correct any errors immediately.
• Implement a return-to-sender policy that clearly states any additional shipping costs for re-delivery.

How do I manage shipping addresses for repeat customers?

Provide your customers with the ability to create accounts on your website, featuring an address book for managing and updating their addresses.

How should I handle special shipping requests, i.e., expedited or scheduled deliveries?

At checkout, offer customers the option for expedited or scheduled deliveries with clear communication about any additional costs associated with these service levels. Integrate a specialized shipping service like Shippo to streamline your shipping workflow and effortlessly provide a range of carrier and service-level options. This integration will simplify the process and enhance the overall customer experience.