Didyou know

Escrow Services serve as a middleman, a neutral participant in the payment process, protecting both the buyer and seller from fraud.

Deciding to use an escrow service is a big decision, with major impacts on the financial side. Escrow services will make your consumers more comfortable with buying from you, and they will ensure you are protected from fraud losses, but there is a cost for this. Beyond the financial cost of the service, this process typically takes 5 to 20 days for the seller to receive their money. Unlike the traditional credit card payment, where payment is received before goods are shipped, in the escrow model, funds are only received once the consumer verifies receipt of the goods or service.

In general these services are pretty reliable and they offer a valuable tool for merchants. The best application for this tool is in higher cost goods, non-verifiable identities or cross border transactions.

How Buyers are protected:
Shipments are tracked and delivery confirmation is required.
The Seller isn't paid until the Buyer accepts the goods or services.

How Sellers are protected:
The escrow provider is responsible for confirming the consumer has received the goods.
The Seller doesn't have to ship the goods until the escrow service has confirmed the funds are good.

 

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escrow Servicestechnique overview

Escrow services insert a middleman into the payment process, responsible for collecting funds from the consumer, and for paying the seller for goods or services rendered. Escrow services are intended to be a neutral participant in the process, insuring both parties are protected from fraud. Key considerations when implementing or buying this functionality include:

  • Do they support the payment methods you know are appropriate for your business?
  • Do they guarantee funds?
  • How much "padding" time have they built into the settlement of funds?
  • How does your consumer feel about this process, are you the trusted participant, or is the escrow service?

How does it work?

It's a 5-step process.

1) Buyer and Seller Agree to the terms of the transaction

2) Buyer Pays the Escrow provider

3) Seller Ships Merchandise

4) Buyer Confirms the receipt of goods or services

5) The Escrow Service Pays the Seller

AdditionalResources

  • OVERVIEW OF ECOMMERCE FRAUD PREVENTION TECHNIQUES.

    A core curriculum course providing an introduction to 30 plus fraud prevention techniques; what they are, high level discussion on how to employ them and big picture considerations for using them.

  • Fundamentals for Selecting ecommerce payment options

    The Fundamentals of eCommerce Payment Options online training course provides an introduction to the world of eCommerce payments. The course provides an overview of the main eCommerce payment options that exist today, why businesses use alternative payments, how eCommerce payment options are grouped, as well as providing examples, mind share, market share, and the major players.

  • Introduction to Ecommerce Fraud Fundamentals.

    Provides participants foundation level knowledge about the theories, best practices and terminology surrounding electronic payment fraud. Presented in a standard format covering the history of eCommerce Fraud, consumer fraud, merchant fraud, fraudster motivation, fraud trends, identity verification and phishing.

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