Physical Address for Bank Accounts

US federal banking regulations require all bank accounts to have a real, "physical" address. This is why banks are required to request a physical address when opening a new account.

This regulation isn't new, but it hasn't been strictly enforced in the past. However, in the last few years, we've seen a trend where banks are reviewing all accounts to verify that the listed addresses are valid physical addresses.

Physical Address vs. Mailbox Address

A physical address is a tangible location, such as a home, an office building, or an office suite within a corporate building. For that reason, a P.O. Box is not considered a physical address, as it is simply a mailbox located inside a post office.

All of our location addresses are technically physical addresses. However, in order to add a mailbox number to the end of an address, we must register with the U.S. Postal Service as a Commercial Mail Receiving Agent (CMRA). Once registered, the USPS flags our physical address as a CMRA location. As a result, the address is no longer recognized as a physical address but is instead categorized as a mailbox address.

Physical Address vs. Commercial Street Address

Some people have asked about the difference between a commercial street address and a physical address. Our definition of a commercial street address, or commercial address, is an address that points to a commercial building. We use the word commercial to distinguish our address from a residential one, and the word street to differentiate it from a P.O. Box.

A commercial street address is not necessarily considered a physical address by banks. It depends on whether the address has been classified as a CMRA (Commercial Mail Receiving Agency) address. This is where most people get confused. Many people assume that if an address is a commercial street address, it must also qualify as a physical address.

Physical Business Address vs. Mailing Address

While banks require your business address to be a physical address, your mailing address can be a mailbox address, or any address for that matter. The mailing address is simply where your statements and other correspondence will be sent. So in that regard, the physical address is used to satisfy federal banking regulations.

Acceptable Physical Address for Banks

The definition of a physical address can vary between banks. Some will accept either a residential or business address, while others may require a business address specifically. However, in all cases, a physical address cannot be a P.O. Box or mailbox address.

To verify that an address qualifies as a physical address, banks typically take the following steps:

• Check the address against the USPS database to determine if it is a mailbox or CMRA address. Some banks may also flag registered agent addresses, as these are often not accepted as valid physical addresses.
• Request proof of address, such as a lease agreement, utility bill, or similar documentation. These documents are requested to confirm that the location physically exists. In some cases, a city or county business license may also be accepted.

Getting a Physical Address

There are a few ways to get a physical address:

• Use your residential home address. This process applies only if the bank accepts a residential address and you have a residential address available to use. You can then set your mailing address to your VPM mailbox address. This option allows you to continue using your mailbox address to receive and digitize your mail.
• Get a real office. This is often the least flexible and most expensive option, but it guarantees compliance. To keep costs down, look for the smallest office suite available.
• Find a bank that can accommodate your specific needs and work with you through the process.

There are other options available, but almost none of them are ideal.

What We're Doing to Solve This Problem

We offer two address solutions that can help you get a physical, non-CMRA address, for an economical price.

• TruLease: rent an office by signing a lease agreement.
• TruResidence - rent a home to receive mail and manage your financial accounts.

Both of these services can help you get proof of address, depending on your needs. To learn more about how each address can serve you, click here.