When to Use Online Escrow
When we think of an escrow company, we almost automatically think of real estate. And for good reason, properties are high-ticket items.
The word escrow comes from Old French escroe and actually means “scroll.” You can picture a Dickensian scribe pouring over and painstakingly filling the scroll with every last inky detail. Thoroughness personified; something that still characterized the escrow company today, for as you know, the amount of paper involved in a property transaction can be intimidating.
But escrow is a function that serves a much-needed purpose in areas other than real estate.
By definition, an escrow company is a third party operation that holds money or property granted to someone else for release once certain conditions have been met, and it is now used in most transfers of high value personal and business properties-such as websites and businesses-and in the completion of person-to-person remote auctions (such as eBay).
An online escrow company serves the exact functions as its brick and mortar counterpart and is subject to the same stringent legal and regulatory requirements.
It is not that every buyer or seller online is out to defraud you, far from it. However, non-delivery of items purchased, and Internet auction fraud combine to make up the most reported cyber crime in the nation for 2008, constituting 58.4% of all reported cyber crimes.
That adds up to over 160,000 reported instances of non-delivery and Internet auction fraud. And considering that conventional wisdom holds that only one in seven cyber crimes are actually reported, the total instances of non-delivery and Internet auction fraud could be as high as 1,120,000.
This is still a low percentage of all transactions occurring on the Internet – eBay for one, boasts over 4 million transactions a day-but the number is certainly large enough 온라인홀덤 to make you stand up and take notice. Chances are you will run into a fraudster.
It is not only the fraud aspect of online transactions that speaks for the use of an escrow service.
Whenever buyers and sellers do not know each other-for the sake of a good night’s sleep alone- they should turn to a third party they can trust. The online escrow company serves precisely that function.
A bona fide escrow company must be licensed to conduct business by its home state, and in order to operate nationwide, must also be licensed in the states of Idaho and Arizona.
It serves as the single point of contact to track and manage all aspects of a transaction, including third-party suppliers.
Such a company reduces the potential risk of fraud by acting as a trusted third party that collects, holds and disburses funds according to buyer and seller instructions.