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Alone, your ZIP code might not be of much value all by itself, but criminals will take that information and post it on underground sites where they buy, sell and trade bunches of personal information. From those sites, criminals can purchase enough of your personal information to use it for fraud.

Stores want your ZIP code because, combined with your name from your credit card, they can use it to find out other information about you from commercial databases, like your full mailing address. They may even sell the information to data brokers, who sell it to other marketers.

Alone, your ZIP code might not be of much value all by itself, but criminals will take that information and post it on underground sites where they buy, sell and trade bunches of personal information. From those sites, criminals can purchase enough of your personal information to use it for fraud.

Your postal code or ZIP code acts as a security measure. When making purchases online with a credit card, you may be prompted to provide the mailing address or postal code associated with your card. This serves as a security check to ensure that you're the one using your card.

But the reason they require a billing address is to prevent fraud. In card-not-present transactions, which occur any time you're not physically at a store buying something, merchants typically use something called the Address Verification Service.