When it comes to transacting with someone you don’t know or even someone you are familiar with there can be a lot of questions around the safety and security of that transaction. While there are a number of different methods for payment in a transaction, each comes with its own risks and rewards. Here we’ve outlined five different methods for transacting safely, outlining each method's strengths and weaknesses.
Cash is still a pretty widely used and accepted form of payment for goods or services. However, given our current situation with Covid-19, cash isn't always the preferred or safest means of payment. Not only can it be unsafe in terms of sanitation but also in terms of security. Firstly, it can be difficult to check for counterfeit money when you do receive it and similarly meeting someone in person to exchange cash or having it posted can be unsafe. Cash transfers in person can lead to assault and robbery and posting cash isn’t the most reliable option either, with money often ‘disappearing’. Therefore, while cash can be used as a method for transacting safely, it's best done with someone you know and trust.
Payment by cheque is similar to cash, while it's still a used means of payment, particularly as a means of business payment it is again best used with someone you know or at least someone reputable, whose identity you can verify. Again, there can be problems with cheques in that they can be addressed to the wrong person or account with a simple misspelling or similarly the amount denoted can be incorrect. Oftentimes, even with all details being entered correctly a cheque can still bounce due to insufficient funds, a problem the cheque receiver won't be able to recognize just from reading the cheque but only after they try to cash it in.
Credit and debit card can be an excellent way to ensure a safe transaction as both have reputable companies behind them such as Visa or Mastercard who can support and verify the transaction. However, that being said, credit card scams and fraud are on the rise and relaying card details for the purpose of a transaction can be unsafe. Details should never be shared via email, text, letter, over the phone or in person. The safest way to transact with a credit/debit card is to use a wire transfer between the bank accounts tied to the cards. This can be done through sharing the account IBAN (bank account information which cannot be used to gain access to your account). While this is one of the more safe payment methods it can be quite a lengthy process if one party doesn’t already have online banking set up and on top of that transfers between different banks always come with a delay.
One of the fastest-growing new means of transacting or transferring money is through peer to peer payment platforms, such as Revolut. Many of these peer to peer payment services operate through mobile apps using your mobile phone number as your identifier. These services are excellent in terms of ease of use; only needing the name and mobile phone number of the recipient, adding no transaction fees and having an accessible platform. However, due to the nature of the app it is best used with someone you know, or if with a stranger, for small transfers. This is recommended due to potential verification problems; a mobile phone number and name as an identifier for the other person in a transaction often isn’t sufficient to verify someone's identity and that information can easily be falsified.
Last but not least we recommend Trustap! Trustap offers an added layer of security that many people seek to make safe and reliable transactions. While the previously mentioned options are very useful for transactions between known parties, Trustap makes it possible to transact safely with strangers.
Firstly, Trustap offers a secure holding account through which funds are lodged by the buyer, held and finally transferred to the seller once certain transactional milestones have been reached such as item delivery/handover.
Secondly, Trustap verifies the identity of all users before any funds change hands, adhering to new KYC (Know Your Customer) legislation.
Thirdly, Trustap protects both the buyer and the seller in a transaction by offering the buyer a complaints period to verify the quality of the item being received. However, Trustap also protects the seller from any fraudulent complaints being made against them as well as protecting them against returned items that aren't what they initially sent out.
While there are many safe methods for carrying out transactions, when it comes to transacting with a stranger, Trustap is your best bet!