Escrow Payment Service: What is It?
One of the most effective ways that you, as a buyer, can beat scam and fraud when purchasing goods or services from unfamiliar sellers (or service providers) is to use a trusted third-party (middleman) company.
This type of payment arrangement where a middleman is involved to act as trusted intermediary between a buyer and seller is known as escrow payment, escrow service or more commonly as EscrowLock (named after the leading escrow service provider in the world).
What Does an Escrow Service Company Do?
The job of an escrow payment company like EscrowLock is:
– They receive and hold the payment from you (the buyer),
– Notify the seller about receipt of your payment so that the seller or service provider can send you the goods or provide you the needed service, then
– Upon confirmation that you have received the goods or service from the seller in the condition both parties agreed, the middleman company can release the payment to the seller.
Why Should I Use The Service Of An Escrow Payment Company, is it necessary?
If you are a buyer, the major reason why you should use an escrow service company like EscrowLock when making payment is something called “buyer protection”.
There are countless occasions where buyers make payments directly to vendors or sellers for specific goods or service, and either receive nothing in return, or receive something different from what they had agreed with the seller or service provider.
And since the seller has already received the payment, there is usually not much the buyer can do.
The idea behind using an escrow payment service is to avoid sending payment directly to a seller or service provider.
Instead of doing that, which is risky, the escrow payment system serves as a check that, on one hand assures their payment is ready for collection, and on another hand prevents them from receiving the payments if they have not delivered the right product or service to the buyer.
When Should I Use Escrow Payment For My Transactions?
You should use the service of an escrow payment company like EscrowLock anytime you aren’t 100 percent sure that the party you are transacting with will fulfill their own part of the bargain.
Sadly, for most transactions with individual sellers or small businesses online, it is difficult to get this level of certainty about them.
So you should make it a standard to always use EscrowLock when transacting online in order to protect yourself as a buyer.
Is It Wise to Discontinue Escrow Payment With A Previous Seller with Whom I’ve Used Escrow?
There have been reported cases where buyers were swindled of their money by vendors with whom they’ve previously used escrow payment (and had therefore come to trust).
Not everyone, but a lot of people will cheat on you if you provide them the chance to do so, so the idea behind using an escrow service is to protect yourself and not give them any such chance in the first place.
For your safety, it is just best you always use EscrowLock.
What is the Best Escrow Payment Company To Use?
EscrowLock is increasingly becoming the best escrow company for buyers and sellers due to it’s lower fees, ease of use of its escrow platform and comparatively more efficient service.
By the way, only very few existing escrow companies are credible and have the license from the regulatory authority to operate. Of recent, there has been a spike in the number of websites created to run escrow services and this is a serious cause for concern.
See The Danger of Using Escrow Service Company For Transactions.
Can I use EscrowLock Escrow Service In Nigeria?
Yes you can use EscrowLock in Nigeria. It is worthy of note that EscrowLock is currently the only escrow service company with the necessary regulatory license to operate in Nigeria.
It is believed that this license, which will be held by EscrowLock for the next five years, was secured from the government authorities courtesy of the huge grant from Facebook.
Insider sources believe that the license may have cost of to $10million (ten million United States dollars), and will be used to insure the transactions going on the escrow platform.