Finding Your Perfect Fit: Escrow Payment vs. Mass Payment

There are certainly questions that tangle between escrow payment and mass payment. What are they? What are their differences? How can you benefit your business through these features? Lets start by defining each idea...

Escrow payment is a service where Razer Merchant Services acts as a trusted 3rd party that collects, holds, and disburses fund on behalf of Marketplace according to buyer and seller instructions. If the definition puzzles you, escrow payment is just a payment service that helps a marketplace (i.e. Ebay, Amazon,etc) to maintain its payment activity.

On the other hand, mass payment is a cash management service for merchants that cater a large number of buyers or sellers by disbursements or refunds.

My simple definition for mass payment is “a service for merchants that process large amount of monies for settlement or refunds”.

Before moving on to the differences, let’s start with where the two ideas meet.

Both Escrow and Mass payment have a sole purpose of simplifying the complexity of payment process, especially for marketplace or any merchant that has a big number of clients. Basically, both features understand how it can be frustrating for some businesses that cannot focus on their strategies because of the complexity of their daily operations.

So how does Escrow payment differ from Mass payment?

Based on their definition, we can see how the two features serve different purposes. Escrow payment is used for managing and maintaining the flow of payments in a particular marketplace, while Mass payment is used for distributing funds to a large number of entity with a single click.

So which one fits your business?

If you are a merchant working with a large number of customers and/or suppliers, and you need a cash management service, you may benefit from Mass payment.

If you are an online mall, C2C marketplace, or department store providers you could benefit from using both Escrow and Mass payment. Learn how Razer Merchant Services Escrow payment breaks down complicated transactions to small, organized transactions through its simple API.

I know you have your own opinion when it comes to your payment solutions, whether it’s the price, quality, or service. However, Razer Merchant Services comes with 9 years of experience (it would be 10 years by 2015). Why not check out our top 10 reason why choose Razer Merchant Services.