Fraud cases between sellers and buyers are still active today especially when many of them are inexperienced and new to e-commerce. According to a report, at least 40 percent of commercial crime cases are reported involving common cybercrimes such as the Macau Scam, African Scam and E-Financial Fraud that happens in online shopping. Federal Commercial Crime Investigations Department (CCID) director Commissioner Datuk Seri Amar Singh said in 2016, 12,766 out of 32,871 cases (39 percent) involved cybercrimes, increases to 13,714 out of 30,612 cases (44.7 percent) last year. This case is still wide spreading despite various actions have been taken by authorities.
To protect this challenging segment, MOLPay has taken action to tackle the cases by providing MOLPay Escrow Payment service for sellers, buyers and also developers who prioritize the safety of their operations.
What is Escrow Payment?
Escrow Payment is the financial solution where a third-party holds and regulates the payment of the funds required for two parties involved in a given transaction. It helps to make the purchases more secure by keeping the cash in a safe escrow account which is only released when all of the terms of an agreement are met as overseen by the third-party. MOLPay acts as a trusted third-party.
How does Escrow Payment work?
Escrow payment is advantageous for those with a transaction involving a significant amount of money. In outlining the procedure of escrow payment, a specific commitment should be satisfied before cash is given. For example, on a being manufacturing site where the buyers may need a confirmation of the quality of work being done before making a full payment, escrow comes in handy. Merchants wouldn't like to extend large measures of work with no assurance that sellers will get the payment.
Why MOLPay Escrow Payment become a necessity nowadays?
- Remove the worries
We know uncertainty doesn't feel good and this feeling always exists when a customer buys or sells to another customer. As a developer, you need to find something that can make your sellers and buyers feel safe while doing the business. To ensure each merchandise or payment are protected, implementing a secure third-party solution such as MOLPay Escrow Payment is highly encouraged. This will help you to reduce the time you spend on handling customer’s reports on scam, fraud or transaction failure between both parties.
- Buyers' benefit
Once the buyer pays for the product, the seller can proceed to send the item. If there are any disputes occur during the process, for example, the seller fails to deliver the thing, no settlement will be made. Buyer can raise an argument and get refunded if the dispute cannot be resolved.
- Sellers’ benefit
Sellers will only have to proceed to send the product when a payment is made. Any payments that are processed through the system are trusted, and this helps the seller to reduce the time taken to manually verify the payment proofs from the buyers.
- Simplify the operation
To simplify the marketplace operation, you can use MOLPay Mass Payment to help with sellers’ fund disbursement and buyers’ refund. By cutting off some services and complains lodged, you can pay more attention to take your business to a higher height.
When the buyer and seller are unprotected, there comes a tremendous opportunity for the involved parties to blame one another. To not let this happen, use MOLPay Escrow Payment to ensure all the seller’s and buyer’s instructions are handled accurately and safely by a trusted third party.
Article by Muhammad Shadiq
About the Author
Muhammad Shadiq is an intern researcher at a marketing department in a fintech company.