Currently ZIP or postal code matching, also known as the Address Verification System (AVS), is what is sent to the card network and is a factor that our fraud prevention models consider when assessing risk. Based on seller feedback, we found that rejecting payments based on AVS mismatches alone ended up declining an unacceptable number of good payments. When our fraud detection models analyze a payment, they take a number of factors into account to determine if the ZIP code was either unintentionally mistyped or if it was a fraudulent transaction. If the data points to an unintentional mistype, we’ll approve the payment; if it appears fraudulent, we’ll decline it.
If any additional address verifications is needed for sellers to determine if they’d like to ship to a customer it would need to be a feature of your application since Square doesn’t validate that information. You can use our APIs to collect that information however validating it would need to be a function of your application. 