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Go with the Escrow

Submitted by Your12designerTeam on 06.04.11, 17:26

Try escrow...Lovely word, innit?

...

Ok, you don't even have a slight idea what an escrow is. Let's say, it's a payment method you could suggest to a client in specific projects, where a lot of job still has to be done afterwards, and it provides a payment security to both parties.

According to wikipedia, an escrow is an arrangement where an independent trusted third-party receives and disburses money and/or documents for two or more transacting parties, with the timing of such disbursement by the third-party dependent on the performance by the parties of agreed-upon contractual provisions.

That means: there's somebody that acts as a third-party, keeping a certain amount of money between two persons until some conditions have been met.

MoneyBookers.com offers an escrow service, from which you'll find detailed information here. This figure is thought for standard selling transactions, such as: client buys a product, send the money in escrow, and when he receives the product and everything is fine, he releases payment. This could be a good option to bear in mind when getting into work in a, for example, complex webdesign project, or a multimedia video. 

An escrow service motivates the designer, as long as money is already there, by giving him/her an improved payment security. It's really easy to use, and it's worth the money: fees are really low. If there's any client reading this, think about it ;-)

We know: prepaid projects are still to come. As long as we're a company based in Europe, we have to stick tightly to EU laws. And according to them, it's not easy at all to receive money (in this case, project's prize) in advance for another person, whose name we don't know. This disquisition is not impossible to solve, but we need time and expert's help to solve it accurately, and we don't want to incur in any loophole, as other platforms seem to want ;)

What do you reckon? Could be something to take into consideration? You'd rather leave out additional variables until "official" prepaid is online? Drop us a line ;-)

 

Escrowly yours,

12designer Team

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