§ Connectivity

Residential IP

also called residential proxy

An internet address that looks like a normal home connection rather than a data center or VPN.

Right, in plain English

An internet address that looks like an ordinary home connection rather than a data centre or a VPN. Some banks and services block VPN and data-centre addresses but still accept a residential-looking one. That is the contrast: a VPN often routes you through addresses these services flag and reject, while a residential IP reads as a normal household, which matters when a service locks you out abroad.

Someone abroad tries to log in to their home bank through a VPN and gets blocked, because the bank flags the VPN's data-centre address. Connecting through a residential IP instead reads as a normal home connection, and the bank lets them in to move their own money.

Why it matters

Banks and services that block VPN and data-center IPs may still accept a residential one, useful when locked out abroad.

Commonly confused with

VPN

LOOSELY DEFINED. This term is used widely but not consistently, and its precise meaning shifts by country and by who is speaking. Treat it as a lead, not a rule.

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