Online shopping fraud continues to victimize more businesses and Web shoppers around the world for the past few years. American online security groups predict over $19 billion in losses by 2018, which is a staggering 125% growth from the $8 billion losses that were reported across the USA in 2014. This is why escrow service providers are now used by many ecommerce business start-ups and Web store owners worldwide.
These escrow service providers offer an online platform that can help buyers and sellers to avoid Web shopping fraud. This is where the escrow service provider acts as a third party mediator for transactions between buyers and sellers on the Internet. The escrow service platform holds buyer payments and releases the money to sellers as soon as buyers and sellers confirm product delivery or successful service completion.
Many of these escrow service providers also mediate disputes and claims between buyers and sellers. This allows buyers and sellers to avoid or mitigate risks of after-sales online shopping fraud.
Who Can Use Escrow to Avoid Online Shopping Fraud?
1. Freelancers and agencies that provide virtual services like content writing, software programming, Web design and development services can avoid fraud by using an escrow service provider. Many credible freelancing sites and micro job sourcing platforms offer these third party escrow services.
2. Service buyers can also benefit from these escrow service providers. They can be protected against fraudulent transactions where service sellers aren't able to successfully render the service based on mutually agreed terms and requirements. This means they can recover their payments from these third party escrow providers during these instances.
3. Buyers and sellers of digital goods or physical products can also avoid Internet shopping fraud through these escrow service providers. Buyers can recover their money from these third parties if sellers are unable to ship the right products in a timely manner. Sellers can fight disputes regarding unshipped or not as described product claims by buyers.
4. Currency traders and digital currency exchangers can use these escrow service providers to avoid online shopping fraud. Many bitcoin trade platforms and currency exchange sites offer third party escrow and mediation services for very reasonable transaction fees.
5. Bidders who frequently search for good product auctions on the Web can also use these escrow service platforms to avoid Internet shopping fraud. They can make sure that the money they place in their winning bids can be returned to them if they don't get the right auctioned products.
6. Buyers and sellers in popular online classified ad sites can also use these escrow platforms to mediate their transactions. This will allow them to avoid online shopping fraud in these classified ad sites.
