I mean — suppose the user packed up her computer and plugged it in on the other side of the country. Would this program show the original billing address? Or where is actually was at that moment?
The billing address could be stale (or faked), but the IP address would be current.
The IP address in question is going to be one assigned by the Internet Service Provider, and the nature of the Internet means that the specific address and subnetwork address are local or regional in scope.
I'm not sure where they gather the location information - for instance my "location" for my address corresponds to a nearby neighborhood - perhaps the location of the fiber-to-cable interface for my area's cable internet link.