Escrow in Online transactions
9th September, 2022
2 mins, 29 secs read
Escrow in Online transactions
How comfortable are you with purchasing items online? Have you ever thought of a way to ensure you get exactly what you ordered when shopping online?
From eCommerce to Social Commerce to service-based businesses, all transactions that take place online have high fraud risks. In essence you cannot fully trust everyone you transact with online, but you take that risk everyday.
Is there a way to mitigate these risks? How can you prevent fraud? Can fraud even be prevented? How can a business protect itself from fraud? And how can you avoid being scammed online?
The possible solution to all these issues lies in escrow systems.
Escrow is a third-party arrangement in a transaction between you and another party, where the third party holds the funds for that particular transaction until the agreed-upon terms are met by the two transacting parties. Escrow protects you from fraudulent transactions.
However, you may wonder; What is escrow? How does escrow work? Is escrow available in Nigeria? How do I transact with escrow? This article aims at address your concerns about using escrow in online transactions.
What is Escrow?
Escrow is a contractual agreement between two transacting parties who keep funds with a neutral third party until the agreed terms of service fulfilled. These transacting parties could be; a buyer and seller, a client and freelancer, a real estate agent and a buyer, or two different businesses. Essentially, escrow protects a transaction between two parties who do not trust each other to keep to their ends of the deal.
How is escrow used in online transactions?
When transacting online, two different parties can agree to keep the payment for a transaction in an escrow system.
Your escrow service provider will temporarily hold these funds in the escrow safe. The funds will only be released to the receiving party when both parties have confirmed that the other kept to their end of the bargain. Learn more about how escrow services work.
Is escrow available in Nigeria?
Pandscrow is an escrow service provider based in Nigeria. Pandascrow has developed a convenient and transparent technology to protect the integrity of all your transactions, online and offline.
With their easy-to-use yet cutting-edge technology they have created a payment solution that not only protects you from fraud and scammers but also makes online payments as easy asflicking your wrist.
Pandascrow temporarily stores the money used for a transaction in escrow and then ensures all terms of an agreement between buyer and seller are satisfied, before disbursing the funds to the seller.
Why do you need escrow in online transactions?
Why is escrow important in online transactions?
- Escrow protects you from fraudsters and from getting scammed online.
- Escrow eliminates the “what I ordered vs what I got” scenario by protecting the interest of the buyer.
- Escrow prevents debts and delayed payments.
- Escrow builds the credibility of online businesses.
- Escrow fosters trust between buyers and sellers.
- With escrow, you are in better control of where your money ends up.
- Escrow is useful in eliminating risks involved in purchasing high-ticket items online like cars, pieces of jewelry, etc.
- Escrow services such as pandascrow are your haven for fraudless transactions.
- Scammers lurk at every corner, protect your next transaction today with escrow. Find out how you can get started with pandascrow here. Do you need more clarity on how escrow can be used for your business or personal transactions?Check this article.