IP geolocation services provide information about a consumer's worldwide location at the time of purchase, based on their IP address — then compare that against the billing and shipping address the customer actually provided.
What comes back
- Geographic data: country, state, city, ZIP code, time zone, and coordinates
- Proxy information: detection of VPNs and anonymous proxies masking the real location
- Network details: ISP, connection speed, and domain information
How merchants use it
A billing address in New York with an IP resolving to Russia is exactly the kind of mismatch geolocation is built to surface. Regulated industries — gaming and software distribution especially — also use it for compliance, confirming a consumer is actually located where they claim to be.
Why it can't stand alone
Geolocation cannot, on its own, be the basis for accepting or rejecting an order. Proxy servers actively work against its reliability, and legitimate travel or VPN use both generate false positives that a rules engine needs to account for.