Today, it is more common than ever before to sell goods online. It's a primary source of income for some, and for others, it's an easy way to sell used goods online.
No matter what kind of seller you are, you need to make sure that you stay protected at all times, particularly when money is involved. You can use an escrow service to sell and get paid for almost anything online, regardless of whether you are selling a car or if you are a freelancer.
What Is Escrow?
An escrow is a legal term that describes a financial instrument in which a third party holds escrow money or assets on behalf of two other parties in a transaction. Escrow accounts include escrow fees that are handled by agents who hold the funds until the good or service has been accepted by the buyer. You can hold money, securities, funds, and other assets with Escrow.
In other words, it's a method used by two parties to complete a transaction, which is uncertain about whether one party will be able to meet its obligations. The use of escrow differs, depending on its context, including online transactions, banking, intellectual property, real estate, mergers and acquisitions, and law. Escrow accounts are managed by various third parties, including escrow companies, escrow agents, and mortgage servicers.
Why Sellers Needs Escrow Services
The process of selling goods and services online comes with several challenges. Here are a few common ones.
Chargebacks
A chargeback is one of the biggest risks sellers face when selling online. It occurs when the buyer claims there was a problem with their order - missed deliveries, incorrect product descriptions - any issue is a persistent risk to your cash flow.
Last-Minute Dropouts
It's possible that you may have buyers cancel their orders at the last minute if you regularly sell online. It's a part of selling goods online, but when you've already shipped items or provided services, a last-minute withdrawal will be costly.
International Sellers
There are also risks involved with providing goods or services to customers overseas. For instance, overseas customers may be subject to different financial rules. Depending on what you sell, there may be additional fees or shipping costs, in addition to the delays that can occur when dealing with overseas payment processors.
Fraudsters
It's common for you to deal with strangers when you're selling products or services online, so keep this in mind when undertaking such a task, especially if the products or services are highly valuable since you are generally dealing with strangers. There are many fraudsters who cheat online sellers every day.
In summary
By using an escrow service, the seller verifies the buyer’s identity and confirms the funding is there during the transaction. Once the funds have been collected by the escrow company or an agent, the seller will be notified that he/she can ship the item to the buyer. The seller knows that the buyer will be able to pay for the item, so they can ship the item to the buyer with peace of mind. Sellers need to provide tracking details during this process. Using this information, the escrow company guarantees that the item is delivered to the buyer and the buyer cannot claim otherwise. As soon as the buyer receives and accepts the item, the escrow company or agent releases the funds to the seller.
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.
