Online transacting on classifieds sites for South Africans could become safer with the local launch of a dedicated escrow service.
The service, dubbed Shepherd, is supported by Standard Bank and is designed to facilitate safer online trades as it eliminates the need for face-to-face meetings.
Sherperd has partnered up with RAM couriers to ensure the buyer is satisfied with the item. “This eliminates personal contact and makes the whole process much safer,” said MD Martin Reynolds.
Buyers pay into their Shepherd account and the firm sends a courier to collect the product.
Once a buyer has inspected an item to verify that it performs as advertised, Shepherd releases the money into the seller’s account.
“Shepherd simply eliminates the payment risks associated with online shopping, enabling the buyer and seller to focus on completing the transaction,” said Craig Polkinghorne, head of business and commercial banking at Standard Bank.
The service is being rolled on the eBay-owned Gumtree trading platform in South Africa and it costs users a minimum of 3,95% or R30/transaction.
Transacting on classifieds presents challenges to people concerned about safety and criminals are known to prey on both buyers and sellers. Common scams include submitting fake bank deposit slips or paying with a fraudulent cheque.
Criminals have also been known to pay more than the asking price or without negotiating. Once the seller accepts, the scammer will ask for “change” and the payment risks being fake.
There is also the danger of physical attacks in a face-to-face meeting where both merchandise and money may be lost.
In the US, the danger has prompted police stations to offer Craigslist safety zones where buyers and sellers can meet in an area monitored by surveillance. — Fin24