People are increasingly turning to online transactions. There are a lot of apps allowing users to conduct various online transactions, including Google Pay, PhonePe, Paytm, and many others. It is really convenient to have these apps, as they allow users to accomplish a lot of things. There are many ways in which you can make use of these apps, including money transfers, online shopping, paying utility bills, booking tickets, and more. In many cases, these apps will even allow you to pay retail store merchants.
However, these apps are being used fraudulently by fraudsters across the country to cheat users and earn quick money. Even though banks and providers of digital wallets send warning alerts to people via SMS and email, many people still fall victim to them.
However, you don't have to worry since there is a solution. In any situation where there is uncertainty over an outcome of a transaction between two parties, an escrow service serves as a mediator and holding ground, helping to protect both parties interests. Escrow is used in many contexts where there are a lot of funds, including online transactions, banking, intellectual property, and real estate.
Normal Payment Platforms
Online transactions are becoming increasingly common with the increase of digital payment apps, such as Google Pay, PhonePe, and Paytm. It is not surprising that fraudsters have become extremely intelligent and find new ways to defraud each day. When you make online transactions, fraudsters will be able to wipe out your account if you are not careful.
The digital payment frauds in India have resulted in many people losing lakhs of rupees. Fraudsters come up with innovative ways to steal people's hard-earned money whenever a new technology comes along.
The following are some of the common digital payment frauds and deceptions used by scammers:
1. QR code fraud - QR codes, or quick response codes, commonly known as QR codes, are used for contactless payments. Using this method, users just scan the QR code to make payments. Nowadays, fraudsters take advantage of this technology to defraud people. Fraudsters send QR codes to users asking them to scan them to receive money in their bank accounts. If you scan the QR code, money will be deducted from your bank account.
Remember that you must only scan QR codes to make payments, not receive payments.
2. Request money fraud - With UPI, there is an option called request money through which you can request money. When you have sent a request to someone, they can pay by accepting it and entering a PIN. This feature is being misused by fraudsters who send fake requests with the message 'Enter your UPI PIN to receive money. UPI PIN should only be entered during the sending of money and not during the receiving'.
Escrow Payment
Escrow is an agreement that provides protection for Buyers and Sellers during a transaction. Payment is held by the independent third party until everyone in the transaction fulfills their responsibilities.
With an escrow agreement, the seller receives funds only once the buyer has accepted the items. However, since the escrow provider holds the funds on behalf of the Seller, they know that they will receive payments.
It's not that escrows only increase the security of your business, nevertheless, escrow do make you less vulnerable to customer refunds or other customer complaints, so they make your business more secure and flexible.
Because the money will already have been charged, when you use escrow there will be no need to worry about the charge being declined after the service has been provided. Moreover, you do not worry that the person receiving the money will fail to provide the service because they only receive the money after the service is provided. These factors align incentives between the buyer and seller, reducing the likelihood of fraud and building trust.
Buyer Protection - When you purchase something of high value from an unknown source, you are taking a risk. No way can determine whether an organization is trustworthy, and therefore you could be defrauded. An escrow service provides you with the assurance you need when you make a purchase. With escrow payment, the funds won't be released to the seller until you receive the item and are satisfied with the transaction. The Seller also provides tracking information, if appropriate, for the transaction.
Seller Protection - Escrow guarantees that you'll receive the money once your goods and/or services are delivered. When you sell long-distance, you take certain risks. By using an escrow service, you eliminate those risks. Although you might be selling to a person within your neighborhood, you are still dealing with an unknown entity. With the help of an escrow service, the seller confirms the buyer's identity and that funds are available during the transaction. After the funds are collected by the escrow company or agent, the seller knows that the buyer will be able to pay for the item, so they can ship it to the buyer with confidence.
Also Check: Freelancing escrow accounts: Work with ease without worrying about your payments.
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. As a seller, 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 say no and ask him/her to proceed with the transaction through Vouch.
Vouch Digital Escrow uses a non-interest-bearing escrow account for all transactions in India and 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.
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.
