Benefits of Online Escrow Services
Escrow services offer many benefits, both to the buyer and seller, especially in Nigeria, where there are high cases of online vendor scams. Here are some of the benefits of escrow services platforms:
- Protection from Fraud
The major benefit the parties involved in an escrow transaction enjoy is protection from fraud. Buyer’s fear losing their money to fraudulent vendors who refuse to send goods after receiving payment. Similarly, vendors are scared of sending out their goods on “pay on delivery” to buyers they don’t know, who might be criminals disguised as buyers to collect goods from vendors and leave them without payments.
Online escrow services eliminate this risk and ensure both parties fulfill their end of the bargain to have a smooth transaction.
- Enhances Trust
Escrow services platforms help build trust between vendors and buyers who may be unfamiliar with each other.
Trust is the major reason most online transactions fall through, as vendors are skeptical of sending their goods without payment, and buyers are skeptical of paying without seeing the goods they want to buy.
However, with successful escrow transactions between the parties, trust can be built, as the escrow services platform verifies the parties’ identity before allowing the transaction to go through. With this, it’s easy for buyers to become regular customers and even refer their friends and family.
- Enhances Transparency
The entire escrow process is transparent, as both parties understand what’s involved and are willing to see it through. The vendor understands that the buyer can reject the goods below their expected quality. Therefore, they make sure to deliver only high-quality products.
- Dispute Resolution
In case of a dispute, online escrow service platforms have systems in place to provide an amicable resolution. This is one of the many benefits, as vendors and buyers don’t have to go for each other’s necks to resolve a misunderstanding. The escrow platform always finds a way to ensure both parties are satisfied at the end of the transaction.
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