Escrow Service and Payments in Nigeria: What to Know

Smart humans among us thought it wise to utilize the opportunity of the internet to better our lives.
So they introduced eCommerce, which is just one of the numerous things one can do with the internet.

You don’t have to take the stress of going to the market to look for some products and not find them or even settle for something that wouldn’t fully satisfy your need because virtually every seller is online. All you need is to use your internet enabled device and start shopping.

You can buy cars, groceries, phones and electrical appliances online without actually seeing the seller. All transactions can be made online if both parties are in different regions or if they are in a situation where they can’t meet physically.

You can now purchase goods that are 3000miles away from you at the comfort of your home – now this is what I call life made easy.

 

But, we haven’t gotten to the interesting part yet!

You know in every twelve there must be a Judas right?

And when one problem is solved another arises.

 

There are some set of people in this world that took a vow to disrupt whatever good thing mankind creates for better living. They are the fraudsters.

Just like they perambulate the offline market looking for who to defraud, they are also roaming the online market hoaxing people and breaking the hearts of many.

 

You pay for a product, the seller disappears or you deliver and the buyer vanishes.

A lady purchased a car worth 3million Naira from an online seller with an instruction to deliver on an agreed date which was her husband’s birthday. When the day came, neither the car nor the seller was in sight.

Nowadays people thread with extreme caution while doing business online and most people also don’t engage in online transactions anymore because of horrendous stories they hear.

 

To help cut down on online transaction scams and fraud, EscrowLock, an international financial services company has launched its escrow service in Africa.

The service, which will help obliterate fraudulent acts associated with online sales and shopping, is meant to start with Nigeria with quick expansion to other African countries like Ghana, Ethiopia, Kenya, etc.

 

Escrowlock serves as a middleman between a buyer and a seller in order to bridge that gap of distrust among the both parties (buyer and seller) whereby the buyer really needs the product but is in doubt if the seller will deliver after he/she makes the payment or whereby the seller has his/her reservations about the buyer.

 

EscrowLock steps in and collect the payment and gives the seller a go ahead to deliver the goods. Now if the seller is genuine he/she delivers the product and collect his payment from EscrowLock but if the the seller is sham and refuses to deliver and vice versa, the company sends money back to the buyer and everybody is happy.

 

What is Escrow?

Escrow is a word used to describe a middleman service usually used in settling payment between two parties (like a buyer and a seller) in risky or suspicious situations, wherein a trusted third party agency like EscrowLock (escrowlock.com) accepts the payment from one party (the buyer) and releases it to the other party (the seller) when certain conditions have been met.

 

What is Escrow Service

Escrow service is a kind of middleman or third party payment service offered by a trusted agency like EscrowLock in risky or suspicious transactions where there is need for EscrowLock to accept payment from the buyer and only release it to the seller when certain pre-agreed conditions have been met.

 

What is Escrow Payment?

Escrow payment is a form of payment that involves the use of escrow service offered by notable escrow companies like EscrowLock (escrowlock.com).

 

EscrowLock, what is it?

Escrow Service and Payments in Nigeria: What to Know

EscrowLock is an independent escrow service agency that acts as the trusted third party or middleman in transactions between two parties (like buyer and seller) wherein there is need for EscrowLock to receive money from one party in the transaction (usually the buyer) and release it to the other party (the seller) when certain conditions have been met (like when seller has successfully delivered goods/services to the buyer).

 

Escrow agreements; what are they?

Escrow agreements are terms the buyer and the seller have to agree on before a transaction is commences and before they even proceed to contract the services of EscrowLock. Some of these terms include but are not limited to:

  • Specifications of the products or services – the size, color of the product etc or in terms of service delivery (like creating website) things like the design, features, etc.
  • Return policy and warranty (if any)
  • Courier services, the transport company to use if they are considering to waybill the product(s).
  • The date or estimated duration that the product is to arrive or the services to be delivered.
  • Tracking systems – to monitor the movement of the product.

 

What Escrow platforms, Escrow Agents, Escrow Service Providers or Escrow Companies are in Nigeria?

EscrowLock.com is the legitimate escrow service company, agency, platform or escrow service provider in Nigeria. EscrowLock works exclusively with leading deposit money banks in Nigeria and is currently the only escrow service provider that is accredited by the International Financial Escrow Services Accreditation Board (IFESAB) – the official global organization that regulates escrow services in low income countries in Africa and the Middle East.

 

How to Use Escrow Service for Secure Payments; How does Escrow Payment Work?

 

Escrow Service and Payments in Nigeria: What to Know

 

In general, Escrow payment services follow the pattern below:

 

  • Agreement between two parties (buyer and seller) on the terms of transaction – That’s where escrow agreement comes in. The terms that are specified there, have to be for the benefit of both the buyer and the seller.

 

  • Involving or initiating a third party– Here, either the buyer or the seller contracts EscrowLock. They create an account or a profile on their website (www,escrowlock.com) to initiate the transaction. They submit the escrow agreement to EscrowLock as a criteria to be met before the money will be disbursed. This is done to avoid conflict.

 

  • Making payment to EscrowLock– This is normally done by the buyer into a special account provided to the buyer by EscrowLock. Upon receiving the payment, EscrowLock informs the seller that the payment has been made so that the seller can proceed with shipping the product(s) or offering the service.

 

  • Seller delivers products or services- The seller delivers the product or services within the agreed duration. He takes precautionary measures to ensure that there is a way that the buyer won’t be able to deny receiving the product. Example is by making sure the courier services or transport company includes a system where the recipients of the product will need to sign or even thumbprint etc.

 

  • EscrowLock releases payment to seller– EscrowLock reviews the terms of the transaction in respect to the escrow agreement and if found satisfactory, then releases the deposited payment to the seller.

 

 

Who can use Escrow service for payments in Nigeria?

 

Anyone who is involved in a transaction especially those transactions that are done online or across cities or countries etc. It is suitable for all the parties that are involved in a transaction; be it the buyer, the seller or the broker.

Location: The use of escrow service is independent of location. So, irrespective of whether you are in Lagos, Abuja, Port Harcourt, Kano, Abeokuta, Anambra, Kaduna, Enugu, or Asaba, you can still use escrow payment by visiting EscrlowLock’s online escrow platform.

 

 

Types of transactions that can be settled using Escrow payments

 

Most legal transactions can be settled using escrow payments. Such transactions include the ones that involve the following, among others;

 

Escrow Payment for Physical Goods/Products:

EscrowLock escrow payments can be used to in the purchase of goods and products that are tangible (can be touched) whether offline or online. Such goods can include items in the following categories:

 

  • Escrow Payment for Fashion:

    This include items like clothes (trousers, shirts, shoes, wigs and weavons, human hairs and attachments, wrist watches, jewelry, etc.)

 

  • Escrow Payment for Electronics:

    The payment services offered by escrow platforms and escrow agents can be used to purchase electronic goods like mobile phones, desktop and laptop computers, television, video games, cd/dvd players, sound systems, etc.

 

  • Escrow Payments for Household electrical and kitchen appliances:

    You can use escrow payment to purchase household electrical appliances like fans, electricity generators, solar power systems (involving solar panels, inverters, batteries, pure sine wave and mixed controllers, etc.), cookers and ovens, mixers, blenders, microwaves, etc.

 

  • Escrow Payment for Furniture:

    EscrowLock escrow services can be used in the settlement of payments when buying items like chairs, tables, couches, beds, room dividers, etc.

 

  • Escrow Payment for Automobile:

    This includes cars, bikes, tricycles, bicycles, and other auto-related products including their spare parts.

 

  • Escrow Payment for Digital goods/products:

    EscrowLock escrow services can be used in transactions involving digital goods like software, apps, music and videos, purchase of pass codes and passwords, graphics and pictures, digital artworks, digital books (e-books) and audio books, etc.

 

Escrow Payment for Services:

Escrow payment services offered by escrow companies and escrow service providers like EscrowLock can be used to pay for a variety of services like:

 

  • Escrow Payment for Construction work:

    One of the best ways (if not the best) to safely execute construction project is by the use of escrow payment services. Individuals, government bodies, non-governmental organizations and other corporate entities can use escrow payment in ensuring that a contractor who has been awarded a project finishes up the work based on pre-agreed milestones and on schedule.
    To achieve this, instead of paying the full contract amount to the contractor, the contract fund can be paid to an escrow company like EscrowLock with a mandate that the fund be released to the contractor in batches based on the progress of the work and specific milestones.
    Most individuals who engage in building and other constructions projects, especially those staying abroad, tend to use their family members and friends to execute those project. But, unfortunately, the outcome of such kind of arrangements are usually not so good.

  • Escrow Payment for Personal deals:

    What if someone promises to facilitate or process an admission for you for a fee (or something similar) but you are not sure if this person is true. This is a good case scenario where you can use EscrowLock. You simply draw out the necessary agreement with the person and transfer the requested fee to EscrowLock’s escrow account for onward release to the other party when the deal is safely concluded according to the agreement.
    What if you are going on a bet with a friend? EscrowLock Escrow service can be the middle man to hold the bet money as far as you state your bet agreement which will guide the escrow transaction.

  • Escrow Payment for Digital services:

    This can include services like software, graphic or web design, content writing and other forms of services that are in digital format.

 

The Guide Press
1st December 2021 4:24 pm

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