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Illustrative image (Photo: VNA) |
This is to assist the parties to the transaction using protected online payments. According to the Centre of Information and Digital Technology, the online payment on e-commerce markets still faces many difficulties due to the high return rate in e-commerce orders.
E-commerce platforms have had consumer protection mechanism, but there has been no mechanism to protect shop owners and no formal or convenient dispute resolution mechanism. In order to solve the difficulties, buyers and sellers often use an intermediary stage, which is a system to secure transactions under the dispute resolution option (Escrow).
This means that two parties ask a third party to hold money, papers or other assets for a transaction on their behalf before the transaction is completed. By this way, buyers and sellers can trust each other on e-commerce platforms and business-to-consumer (B2C) e-commerce websites.
The Escrow system of transaction assurance will solve the online payment difficulties of the e-commerce market by building a reliable intermediary system, ensuring that transactions take place according to agreement between buyers, sellers and brokers.
In addition, the system provides a place to keep the payment of the buyer and will only transfer it to the seller when the transaction is confirmed as successful from the parties participating in the transaction chain.
It also provides an online dispute resolution platform for the parties involved in the transaction. Buyers and sellers have a default normal period of seven days to execute contracts. During the holding period, only when the buyer clicks on the approve button to transfer the money to the seller, the money is actually transferred.
