Escrow for eCommerce
31st May, 2022
2 mins, 0 secs read
COO, Product Manager
Commerce is as old as man's existence and over the centuries, commerce has grown and flourished from next-door neighbor trade by barter, to a bustling international trade.
With the invention of technology, eCommerce has become a permanent foothold in the commercial industry. However, this convenient development comes with its own issues and risks. The bigger the online marketplace, the greater the need for safe and seamless trade.
Now trade and commerce have progressed to the point that customers do not need to go to a physical marketplace. They conduct business with people they have never met. This poses risks of nonpayment, damaged goods or merchandise, fraud, poor/zero refund policy, and scammers.
Now more than ever, the online marketplace requires easy and more secure payment methods. Escrow services conveniently fill this need. Escrow protects B2B transactions and eCommerce by holding funds with a neutral third party until confirmation from the customer about their merchandise.
How does escrow work in eCommerce?
Escrow protects a transaction between two people who do not know and trust each other. It ensures each party keeps to their end of the bargain.
These are steps for using Pandascrow in E-commerce.
- Buyer and seller agree on the terms of the transaction.
- The seller creates a transaction on Pandascrow, and Pandascrow sends out an invoice to the buyer via email. Alternatively, the seller can send the payment link to the buyer.
- The buyer makes payment to Pandascrow with the agreed fee for temporary holding.
- The seller received confirmation to dispatch the desired product.
- The buyer receives and inspects the product.
- The buyer confirms receipt of the product on pandascrow
- Pandascrow immediately releases the payment locked in escrow into the seller's preferred account.
Buyers can deposit product fees with either; Credit card payments or bank transfers or USSD or crypto. The buyer also has the option of returning goods if they do not meet up with the agreed standard. The funds held in escrow would be reverted to the buyer if the product verifiably does not meet the terms of the deal or a purchasing dispute between the buyer and seller is unresolved.
The seller receives their payment only when the buyer is satisfied with the product inline with the terms set before the transaction. On the flip side, the buyer does not receive any product, if they do not deposit the funds in escrow first. Hence, as a seller, your payment is secured, and as a buyer, the delivery of your satisfactory product is assured.
Pandascrow deducts a small fee of 2.25% from the held funds for their services.
Would you like to learn more about pandascrow's services in the protection of your payments and why you should choose pandascrow, visit https://pandascrow.io/scrow/why-choose-pandascrow to learn more.