How to handle payments the proper way
An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company.
Escrows are very useful in the case of a transaction where a large amount money is involved and a certain number of obligations need to be fulfilled before a payment is released like in the case of a website being built where the buyer might want confirmation of the quality of work being done before making a full payment, and the seller doesn’t want to extend a massive amount of work without any assurance that he or she will receive payment. While traditional escrow service is quite difficult and must be obtained through banks and lawyers, Escrow.com provides online escrow services at affordable rates. While the payment is 'In Escrow' the transaction can be safely carried out without risk of losing money or merchandise due to fraud. This eliminates all legal jargon and allows for secure transactions and confident buyers and sellers.
Escrow Service Providers(ESPs) reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied.
- Buyer and Seller agree to terms - Either the Buyer or Seller begins a transaction. After registering at an Escrow Service Provider, all parties agree to the terms of the transaction.
- Buyer pays the ESP - The Buyer submits a payment by approved payment method to our secure Escrow Account, ESP verifies the payment, the Seller is notified that funds have been secured 'In Escrow'.
- Seller ships merchandise to Buyer - Upon payment verification, the Seller is authorised to send the merchandise and submit tracking information. ESP verifies that the Buyer receives the merchandise.
- Buyer accepts merchandise - The Buyer has a set number of days to inspect the merchandise and the option to accept or reject it. The Buyer accepts the merchandise
- ESP pays the Seller - the ESP releases funds to the Seller from the Escrow Account.
- Transaction is complete - safely and securely!
I have fallen prey, and many of my friends have fallen victim to numerous online purchase scamms amnd also receiving low quality goods from rogue people. The reeerse for buyers is also true. I set out to solve this problem by looking at ways in which i could solve the challenge of payments receipts from online purchases. I encountered alibaba who were using this system and thought, what if i could empower all the developers seeking to build out ecommerce websites where goods and money exchange hands and no trust/ knowing people exists from before:
- I mean i do not know the guy who i am purchasing goods from in person.
- They are not physically located at a place i can go and pay money and collect it.