Online sales transactions can be a risky proposition if you’re not dealing with an established company. Every time you give out your financial information to someone you do not know you run a very high risk of being defrauded. If you are a small startup the majority of your transactions are probably made online so making sure every transaction is safe and secure is vital. One way of protecting your high end purchases is by using companies that provide escrow.
Escrow.com was founded in 1999 by Fidelity National financial and has since achieved the $1 billion mark in online transactions. The protection and security of the transactions is provided by Internet Escrow Services which is a licensed and accredited escrow company that has to comply with applicable laws regarding escrow regulations. The company simplifies the process of speeding up e-commerce for secure settlements of financial transactions between two parties. It can be used on auction sites as well as any other transaction to ensure the safe delivery of a product or service.
Why Use Escrow For Your Online Transactions?
The primary reason for using an escrow company is to protect you from fraud. If you have a small company you can ill afford to lose any amount of money to fraud. The escrow company is a third-party that collects, holds and pays the money according to the instructions of the buyer and seller. This guarantees the buyer receives the product that he or she was promised and the seller receives the full amount of their purchase price as promised.
When To Escrow
You should use escrow when you are purchasing items above $500. If the items doesn’t warrant protection or you have dealt with the customer for a long time and there is trust using escrow might not be necessary. Basically you are buying peace of mind when you make large purchases just incase something does happen.
In order to begin the process both parties register with escrow.com and agree to the terms of the transaction. This includes detailed description of the item, the price, the amount of time the buyer has to inspect the item and shipping information. The buyer then pays escrow.com using different payment options. When the payment is verified the seller is notified to ship the merchandise and give the tracking number to escrow.com and they verify that the buyer has received a shipment. The buyer can accept or reject the item within the allotted time. If the buyer rejects the item he has to return the but if on the other hand he decides to keep the item escrow.com will pay the seller and the transaction will be complete.
Using an escrow service guarantees that the buyer and seller are protected at all times. The payment and the merchandise will only be transferred once both parties have met the requirements of their end of the agreement.
One way of guaranteeing financial transactions online is by using an escrow service. It can provide the security customers demand when they are dealing with large purchase items with anyone.