How Escrow Service Helps Your Import Export Business

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Simply put escrow payment service ensures both the seller and buyer gets the intended benefits over a trade. It reduces potential risk of fraud on both party and it acts as trusted third party that collects, holds and disburses funds according to buyer and seller instructions.

Escrow services are provided by licensed and regulated escrow agents. Suited for small to medium value merchandise or intellectual property where conventional payment system is either unsuitable or un-economic. Typically used for items purchased on auction sites, small value shipments, domain names, source codes, etc.

Exporters use escrow for collecting payment from small export shipment where buyer is unwilling to pay in advance and Letter of Credit is an expensive option.

It is commonly used for first-time transaction where buyer and seller are conducting business for the first time.

For exporter, escrow is the safest one around for payment receiving through credit card, to avoid chargebacks. For importer, a credible intermediary can always help in between buyer and seller to build trust in each other, via payment of credit card.

Seller is protected by escrow in a way that buyer is first required to deposit the full payment before seller ships the ordered product. Likewise, buyer is protected, since escrow will track the shipped merchandise and attest it to the buyer that the product has been delivered. The buyer does the usual inspection of the product's quality and then accepts the release of payment to seller via escrow.

Escrow methods varies when buyer is not satisfied with the product, seller has no option but to replace the product as far as escrow is concerned buyer is already fully paid. The buyer's responsibility now is to return the product to the seller with full proof of the damage, or the reason behind buyer rejected the said product.

Tedious task but all are required if you want safe and trustworthy transactions between new buyer and seller relationship.

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