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In this video tutorial, Rashid explains how to use a free zip code validation API. Most zip code validation APIs are premium and costly, but Rashid found a free one that works well. This free API provides the same results as premium ones, validating zip codes and providing state, country, and city information. By sending a request to the API, you can get the postal code, country, state abbreviation, and other relevant information. The API is open source and supports multiple countries, making it easy to integrate into your projects.