When you order online, you get two different addresses to fill out: the shipping address and the billing address. Most people think they just have to enter the same address twice, but that’s not the case; there is a difference between the two.
Remember when you get the “Payment declined” notification after correctly entering all your address details.
And after a few attempts
You just left your cart abandoned, wondering – If the system is broken or down?
This time, the problem might not be your internet connection but your incorrect or mismatched addresses.
Let’s see the difference.
Billing address – The Address associated with your payment method to check if a verified user did it
Shipping address – The address is used to make sure the shipment is sent to the correct address.
Simply put, the billing address recognizes “Who is paying,” while the shipping address focuses on “Where to send the order.”
Now, let’s walk you through the “WHYs” –
- Why does the payment error associated with these addresses occur?
- Why do customers confuse these addresses, and
- How can you reduce cart abandonment, angry customer feedback, and lost and returned orders?
What is a billing address?
It’s an address used to verify your payment method. For example, if you are paying with a credit card, a company will cross-check your details on file to make sure you are an authorized user and prevent any fraudulent activities.
What is the Shipping address?
It’s the address that makes sure your ordered items are being shipped to the correct address.
Your shipping address can be the same as your billing address, or it might be different under some circumstances (if you are sending a gift or have a different format of addresses).
Scenarios in which your billing address can be different from your shipping address
When you frequently order for yourself, your home, or your office, your billing and shipping addresses are usually the same.
However, there are a few cases when they are different, and you have to enter them separately to avoid receiving a payment error and not knowing why or what to do.
1- You are sending a gift
Suppose you are sending a gift to a friend. In that case, your billing address will differ from your shipping address. For billing, you will enter an address that matches the one on your file (documents issued by the bank).
And for shipping, you will provide your friend’s address details.
2- You have a different format of address
Even if you have the same shipping and billing address, you can still get a payment error if both formats differ.
Suppose you wrote “Drive” in your shipping address, but instead of “Drive,” there is a “street” written in your billing address.
In that case, you have to make sure you have the same address written for both fields; otherwise, you might get errors.
To prevent such an error from happening, cross-check your billing address in your statements, which you receive either by post or online.
Scenarios in which you can face delayed or lost orders
1- Mismatched payment details
Your billing address details don’t match your credit card address details.
2- Wrong form fields
If you mistakenly enter your city address in the wrong form field.
If you enter your “Unit #” in the second address line instead of the first, your order might be delayed due to a misunderstanding and a lack of proper details.
3- Wrong address info
In some cases, customers misspell information that can cause them to lose their orders. For example, instead of “345 Blue St,” they might write ” 354 Blue St.”
In that case, the company either,
- Resend their order or
- Process a new order if the recipient of the wrong address hasn’t returned the order.
4- Insufficient info
Sometimes, the customer provides half details that can cause delayed or incorrect delivery. For example, in some cities, “John F” and “John R” may have different people with the same names, and your small mistake can cause shipment problems.
How putting the wrong addresses can impact a customer and a company
Impact on the company (Shipment sender)
Any mistake the customer makes while filling out the fields can result in a lost or delayed order or a heated review by a customer. No company wants to get a bad review that can destroy their reputation.
Sometimes with prepaid orders, if the order is sent to the wrong address, there are chances that the recipient might just keep the order in sheer misunderstanding or not return the order, which can cause the company to resend the order at its own expense to the original buyer.
To avoid such a situation, there should be a clear preview of all the details with a reminder to recheck before punching the final checkout. In that case, a customer might identify and correct any mistake beforehand.
Impact on the customer (Shipment receiver)
A wrong or incorrect billing and shipping address can equally impact a customer.
- They might lose their order.
- Get a delayed order
- Never received an order
Entering addresses correctly can save customers and companies a lot of hassle. Therefore, companies must add a disclaimer to recheck information before checking out. On the other hand, customers should also be responsible and informed about the difference between the two addresses.
FAQs
What happens if my billing address is different than my shipping address?
You can easily enter them separately to avoid payment errors and lost or delayed shipments.
Does the billing address matter when ordering online?
Yes, if your billing address is different from your shipping address, you must enter it accurately. Otherwise, the e-commerce system may display a payment process error if it fails to match the credit card address with the one you provided.
Should you use a shipping address as a billing address?
If your shipping and billing addresses are the same (shopping for yourself), yes, you can use them. If there is a difference, you have to enter both separately. For example, if you are sending a gift to a friend, you must make sure you put the right address.
Should my billing address be where I live?
Yes, your billing address is where you live or receive mail, statements, etc. Companies need this address to verify your payment method. For example, if you are paying with a credit card, a company will cross-check your details on file to make sure you are an authorized user and prevent any fraudulent activities.
Does my billing address remain the same if I move?
No, if you move to another city or state, you have to change your billing address in your account. It’s the address to which your payment method is linked. To ensure you receive mail at your current address and that your online purchases are not canceled due to a mismatch, update your address with your bank or card issuer.
