INDUSTRY NEWS


Guarantee deposit for seller and consumer

For protecting customer right and its own benefit, third party payment processor hold a certain percentage of transaction amount for merchant account. The ratio of the processing volume could be varied according to every payment processor.  For payment by credit card, it’s been done to clean up the market on some extent and reduce illegal business behavior.

 

For example, Tabao recently published a program, which is in terms of sports shoes new category to raise consumer guarantee deposit at 5000yuan, for the purpose of reducing negative influence on consumer shopping experiences brought along by harmful business behavior.

 

Taobao believe that rising the processing credit reflected the ability of Taobao trainer seller after sales customer service, quickly space out more distance to the competitors, and realize truly industrial boutiques.

 

From Aug.3rd, the seller is not allowed to publish new products under sports shoes new category unless your account being hold with 5000yuan deposit on Taobao. For the ones that had already published their products under this category but had not paid enough deposit, Taobao will call one after another. If the seller does not paid full deposit within the deadline, Taobao will withdraw the products in their stores from sale, and block the traffic to the stores.

 

Some small business owner may think the deposit is much too high, such as: graduates who wants to pen an online store. There are other concerns could this deposit guarantee no misjudgment. As they want to run the store in long term, they would like to provide more guarantee for customer but in the meantime, the merchant benefit should be considered and protected.


For defend brand merchants’ benefit, most of sellers will definitely support. But the program is requested to provide a more specific and practicable way on how to judge the fake product and by what means to realize justice, for both seller and consumers right.

 


CONTACT US


Have questions, comments, suggestions or something else you would like to share with us? Contact us.

1-800429-5708 applicationagent1@austpay.com service.austpay