Every day more people buy things online. It is so easy to click on an item, put it in your cart, and checkout. You don't have to get dressed or brave the elements to do any of it. With the convenience come serious concerns about security and the legitimacy of some companies. The best option to ensure the purchaser and seller complete the transaction satisfactorily is an escrow service.
The idea of keeping funds in escrow is nothing new. Real estate commissions have required Realtors to put earnest money in trust accounts for many years. When you purchase real property you have to put a down payment on it. Those funds are held in a special account until you get ready to close. At the closing, the money is applied to the total purchase price. When you buy merchandise online, you probably assume you are paying the retailer directly. In many cases, your money goes into a third party trust account.
When escrow agents are used, the buyer's payment goes to that company to verify the funds and hold them until the purchaser receives her merchandise. The company notifies the seller that the funds are good, and the retailer releases the merchandise. Once the buyer receives her package, she inspects and accepts it. Only then is the money released to the seller.
Most of these companies offer additional services. If you are purchasing a high ticket item like a vehicle, in addition to holding the funds, they will assist with any liens, shipping documentation, and title issues. In the case of the sale of jewelry, which is a favorite of online scammers, using an escrow company keeps the money out of the hands of the seller until the buyer has received the item and had an opportunity to verify its authenticity.
Specialty items like guns can pose problems when you attempt to purchase them online. You need to know your money is in safe hands and that your purchase is being tracked. Even general merchandise, without great value attached to it, is important to the purchaser. When there are problems with transactions, customers are unhappy, and retailers lose business.
Buyers benefit when they use these services. Instead of a seller getting the money before the buyers get the merchandise, it is held by a third party. This company tracks the package until it reaches its destination. You can inspect the merchandise to verify it's what you bought, and then accept it. The seller won't be paid until all of this has happened.
There are benefits for the retailers also. When they release the merchandise, they know a buyer's funds have been verified and are being held. This way sellers can avoid charge backs. They know they will get paid as soon as a buyer accepts the merchandise. Using one of these services keeps transactions clean and encourages repeat business.
Buying merchandise online is a huge convenience. It's also a great way for sellers to move their product. With a third party holding the funds, everyone is assured of a successful transaction.
The idea of keeping funds in escrow is nothing new. Real estate commissions have required Realtors to put earnest money in trust accounts for many years. When you purchase real property you have to put a down payment on it. Those funds are held in a special account until you get ready to close. At the closing, the money is applied to the total purchase price. When you buy merchandise online, you probably assume you are paying the retailer directly. In many cases, your money goes into a third party trust account.
When escrow agents are used, the buyer's payment goes to that company to verify the funds and hold them until the purchaser receives her merchandise. The company notifies the seller that the funds are good, and the retailer releases the merchandise. Once the buyer receives her package, she inspects and accepts it. Only then is the money released to the seller.
Most of these companies offer additional services. If you are purchasing a high ticket item like a vehicle, in addition to holding the funds, they will assist with any liens, shipping documentation, and title issues. In the case of the sale of jewelry, which is a favorite of online scammers, using an escrow company keeps the money out of the hands of the seller until the buyer has received the item and had an opportunity to verify its authenticity.
Specialty items like guns can pose problems when you attempt to purchase them online. You need to know your money is in safe hands and that your purchase is being tracked. Even general merchandise, without great value attached to it, is important to the purchaser. When there are problems with transactions, customers are unhappy, and retailers lose business.
Buyers benefit when they use these services. Instead of a seller getting the money before the buyers get the merchandise, it is held by a third party. This company tracks the package until it reaches its destination. You can inspect the merchandise to verify it's what you bought, and then accept it. The seller won't be paid until all of this has happened.
There are benefits for the retailers also. When they release the merchandise, they know a buyer's funds have been verified and are being held. This way sellers can avoid charge backs. They know they will get paid as soon as a buyer accepts the merchandise. Using one of these services keeps transactions clean and encourages repeat business.
Buying merchandise online is a huge convenience. It's also a great way for sellers to move their product. With a third party holding the funds, everyone is assured of a successful transaction.
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