Escrow is a legal concept or rather a financial instrument where an asset or escrow money is held by a third party on behalf of two other parties who are in a process of completing a transaction.
Have you ever been in such a situation where you were worried about the credibility of the other party and about receiving your payment?
An escrow account helps you with that by keeping the money in a safe account managed by Protect Pay, the amount of which is released once all terms are fulfilled, and both parties are satisfied thereby preventing frauds.
In a world where the value of transactions is increasing, it has become necessary to ensure the quality of the product of the other party before paying money to prevent being stuck in a long wait for a refund of one’s hard-earned money.
Let us take the example of a real estate transaction,
Initially, the buyer and seller agree to the sale and once the buyer transfers the money to an Escrow account the seller transfers the property papers to the buyer and after inspecting the house, he can convey the same to Protect Pay, who then immediately transfers the money to the seller. This protects the interests of the buyer and ensures faster payment to the seller.
In light of all the issues plaguing these transactions, ProtectPay brings to you a safer alternative for all your major transactions that allows you to connect with different parties with ease –
- Once the agreement is signed by both parties the buyer transfers the amount to a secure Escrow account that is managed by Protect Pay.
- Protect pay then verifies the payment and conveys this to the seller who then completes his part of the deal which may be the Transfer of Property papers or shipping of a product like a car.
- On receipt of the same by the buyer, he has the option to accept/reject in a limited time frame following which the money is transferred to the seller once Protect pay verifies the transfer of product with the buyer.
In today’s times, what is the biggest worry while buying a car/ house? What is the thing that worries a middle-class person and makes him reluctant to enter such a transaction?
The answer to these is quite clear; the possibility of fraud and the possibility of losing one’s hard-earned money and it’s rightly so with newspapers today being filled with such news daily.
Protect pay ensures that your money remains safe and is not transmitted until you receive the merchandise (property, vehicle) and are satisfied with the same thereby providing the safest and easiest way for making large transactions without any worry.
With a rise in frauds and increased direct selling (Both C2C and B2B) through online platforms like OLX, the use of Escrow is bound to rise as it offers a host of benefits including-
1) Reduction in Risk of Fraud
In a B2C transaction of selling a house, there is a possibility that the seller may not transfer papers even after payment or may have transferred illegitimate papers, and similarly, there is a high chance that the consumer doesn’t fulfill his side of the agreement. In this situation had an escrow account been used it would have eliminated the chance of fraud since Protect pay would have verified the money that the buyer has transferred in the Escrow account and would have transferred the same to the seller immediately once the buyer confirms delivery.
2) Easy refund process
In case the product is not as per the specifications or requirements of the buyer, for example, a different model of the car was delivered then the buyer can get a refund easily since the money would be in the Escrow account rather than in the hands of the seller who might delay the same causing problems to the buyer.
3) Efficient Cash Flow
Using an Escrow account in a transaction ensures effective cash flow as it prevents delayed payments by the parties since the amount has already been transferred to a neutral escrow account.
4) Widespread Application
Escrow accounts can be used in a host of areas including a Classified site like OLX, Quickr, an e-commerce site, or in the marketplace in general for real estate, insurance transactions, etc.
A transaction with Protect pay enables the parties, particularly the buyer to simplify transactions as they can manage several sub parties easily using the Escrow account and can even avail additional services with the Escrow*
An escrow account is truly the way forward for such transactions and eliminates the apprehensions that people have in a normal online transaction which can increase the use of these platforms by customers thereby benefiting both customers and sellers.