Transacting with people you don't know online can be risky, especially if you are dealing with high-value items. In the case of buyers, there is a risk that they will not receive what they paid for. Sellers face the potential of not being paid, while brokers face the potential of losing out on a deal. It is a good thing that there is a solution to the problem. The Escrow service gives you all the protection you need to conduct high-value transactions in a safe, secure manner, all while making sure of your security.
Escrow payment is used when a person wants to buy or sell something valuable but does not know the other party, wherever the transaction takes place. The escrow service is used for all types of transactions, from classified ad sites to auction sites and B2B e-commerce sites.
A wide range of products and services can be bought and sold using Escrow. Escrow service is a great way to protect you and your customers regardless of the transaction value, whether you own an e-commerce store, a marketplace, an auction site, or any other platform.
How Does Escrow prevent frauds -
Escrow in Real Estate Frauds - In this case, escrow accounts guarantee the buyer’s ability to close the deal. For instance, the sale may be complicated with conditions, such as passing an inspection. In this scenario, escrow is used to hold the buyer's payment for the house. This helps the seller ensure that funds are available and the buyer can, so he can get the house inspected with full assurance. As soon as all conditions for the sale have been met, the money in escrow goes to the seller.
Escrow in OLX Frauds - There was one instance when a lady was looking for a mobile phone on OLX and lost Rs. 14,000. She came across an ad for an Oppo phone. After contacting the seller, she agreed to pay Rs.14,000 for the phone. The seller sent her a link to complete her payment. After clicking the link, she immediately had three transactions deducted from her savings account within minutes. Her police report says she lost Rs.14,000. This was split evenly between two transactions for each of Rs.5,000 and one transaction for Rs.4,000. In this case, she could have avoided the issue if she made the payment through a digital escrow platform.
Escrow in frauds involving freelancers - There are quite a few freelancers who end up working for free when they get an opportunity from a company and they trust them simply because of their name and reputation. No matter how much a company tells you, do not trust them when it comes to payments. The vast majority of fraudsters request free samples or work on a demo project from the first-time freelancer, then use these samples and never pay the freelancer. Many fraudsters take advantage of freelancers just starting out by using this method and some are even proud of it by calling it a hack to create free work. This type of fraud can be avoided by collecting an advance by means of a digital escrow platform.
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. 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.
Buyer Protection - When you purchase something of high value from an entity you do not know, there are many risks involved. There is no way to determine whether an entity is trustworthy, and you may be defrauded. Vouch offers you the assurance you need when you make a purchase. We won't release the funds to the seller until you've received the item and are satisfied with the transaction. In addition, we ensure the Seller provides tracking information, as appropriate, for the transaction.
Seller Protection - Vouch ensures that, as a Seller, you’ll receive your money once you deliver the promised goods and/or services. You are taking certain risks when you engage in long-distance selling. Even if you sell to an individual or business within your neighborhood, you're still going to be dealing with someone you don't know. With Vouch's robust and trusted payment method, you'll never have to worry about selling to an unknown entity.
Also Check: What Is Escrow And How Does It Work?
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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!
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