Cybersource Corp. has added an address verification system to its transaction processing service for electronic merchants.

Cybersource, which built a successful e-commerce outsourcing business around a fraud screen and other technologies, said address verification can provide a return of 600% or better on a merchant's investment.

"Misshipments are as costly an issue for physical goods merchants as credit card fraud is for digital goods merchants," said Cybersource marketing vice president William Donahoo.

The market cost of misshipments due to errant ship-to information could exceed $135 million this year, according to Forrester Research of Cambridge, Mass.

The Cybersource program, called D ve, "cut the incidence of returned goods from 3% to well under 1% by identifying undeliverable addresses early in the order flow," said Richard Lancaster, president of Cobweb Inc., a provider of turnkey e-commerce systems.

D ve applies data base and fuzzy logic technologies to confirm certain address details.

"Because D ve validates the correctness of U.S. and Canadian delivery addresses in real time while the consumer is still on-line, errors can be promptly corrected," said Todd Martin, Cybersource product manager. This improves customer satisfaction and helps merchants avoid such expenses ship-backs, restocking charges, reshipping, and credit card chargebacks.

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