Sometimes buyers and sellers have to collaborate based on trust-and this can be frightening. It can be less risky to do business with escrow services. You probably don't come across the term escrow on a daily basis, but it can be really helpful. There are several basic purposes for escrow accounts, and we'll discuss them here.
What Is an Escrow Account?
Accounts intended for holding funds temporarily in safekeeping are called escrow accounts. Escrow is a process used when two parties are engaged in a transaction, and it is uncertain whether or not the parties will be able to fulfill their obligations. The use of escrow can be found in many areas, including Internet transactions, banking, intellectual property, real estate, mergers and acquisitions, and law.
Escrow Services as a Trust-Building Utility in Online Shopping
Online shopping is the largest industry in the world, providing millions of products and services at the customer's fingertips. Shopping online has never been easier. Now it is possible to browse and purchase almost any product on your device, regardless of the time or the location. Online sellers and technology providers benefit greatly from this. An escrow service is important for establishing trust, especially when a business is newly established. Many online stores, however, do not take full advantage of the opportunity.
Online shopping marketplaces use payment gateways to receive customer payments. Through a payment gateway, customers can pay using a variety of methods. Online marketplaces are dedicated to their customers' satisfaction and protection. There is therefore a need for escrow payments, which can protect both buyers and sellers. Having the escrow service at the central scheme aids in managing the sales cycle. The payment process includes verifying the customer's payment, monitoring the merchant's conduct, and negotiating accordingly.
Using an escrow service is a way to protect both the seller and the buyer -
Seller Protection - You might find selling high-value goods or services difficult, especially if you don't know the person or trust them.
By using an Escrow service, buyers and funds are verified. You will be notified by the escrow company when you are able to ship the item to the buyer after they secure the funds. You must provide tracking information to the escrow company during this process. Using this information, the escrow company assures that the buyer will receive their item and will not be able to claim otherwise. Escrow releases you the funds once the buyer has received and accepted the item.
Buyer Protection - Buying from an unknown provider online can be risky, especially if the product or service is valuable. There is no way to determine the entity's trustworthiness, and you run the risk of fraud.
An escrow service gives you the peace of mind you need when making a purchase. Funds are not released to the seller until following receipt of the item and your satisfaction with the transaction. The Escrow provider also ensures that the seller provides tracking information for the transaction, if applicable.
When people have a need to buy or sell something of value but don't trust the other side or are unsure where the transaction will take place, they use an escrow service. Until the buyer receives the product or has verified the condition of the item, the buyer's money is held in an escrow account. Following the buyer's approval, the money is released from the escrow account to the seller. As a third-party service provider, the company that handles the escrow account usually takes a fee.
Also Check: Scared of buying from Facebook Marketplace: Use Escrow Account to stay safe.
Digital Escrow Service In India.
Digital escrow services are offered by many companies in India. Among the most trusted is Vouch.
Vouch’s Digital Escrow service is a transparent way for buyers and sellers to build trust and secure a clean transfer of product and payment. Sellers can feel assured that they will be fairly compensated promptly, and buyers will feel confident that their order will be delivered as expected and on schedule. Vouch Digital Escrow keeps you updated and informed at every step of the transaction process till the end. Vouch’s professionals are always available to assist you with all queries that you may have during the entire transaction process.
There is no scope for deceit or fraud since the payments, shipping, delivery, and execution are carried out under the honest and watchful eyes of the Vouch’s professionals. With Vouch, any business transaction becomes transparent, uncomplicated, and hassle-free. If you ever come across a fraudster asking for OTP, asking you to scan a QR code, or asking you to click on phishing links, you can simply refuse and ask him/her to proceed with the transaction through Vouch.
Check back here to learn more about Escrow and how to protect yourself from fraud.
Safety is not just about protecting your credit, debit card number, and UPI accounts. It's about having control of your money till you've received the product or service you bought online!
Now that we have you up to date on online safety, let's get your transactions secure on Vouch. It's just a click away.