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| News & Scoreboards |
Wild, Wild Web
Kasey Wehrum
06/01/2004
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For even an astute collector, acquiring antiques and collectibles entails a
certain risk. Buy them over the Internet, and that risk increases. More than
$200 million was lost to online fraud last year, according to the Federal Trade
Commission, which received more than 80,000 complaints about online auctions in
2003, a 130-percent surge in two years.
In an effort to make digital
marketplaces more secure for buyers and more profitable for sellers, one company
has begun certifying qualified merchants and guaranteeing their transactions
with surety bonds. The Alexandria, Va.-based company buySAFE, founded two years
ago, reviews a seller’s past performance, financial stability, experience and
history to determine whether or not it is eligible for certification. Those that
are have their transactions guaranteed for up to $10,000, backed by bonds issued
by The Hartford Financial Services Group. Beyond providing security for buyers,
the service also benefits sellers by guaranteeing their credibility, which often
translates into higher bid prices.
“Trust is a fundamental problem in the
world of e-commerce,” says Jeffrey Grass, CEO of buySAFE. “The Internet is a
great place to buy lower-end items, but as prices go up, so does the risk.
People are willing to take a chance for a $20 piece, but not for a $5,000
piece.”
If a dispute arises between a buySAFE-bonded seller and a buyer, the
company initiates a transaction resolution process. The first step is a mediated
digital discussion between the two parties. If mediation fails, the buyer can
submit a claim to The Hartford, which thoroughly investigates the issue. If the
claim proves valid, and seller default is verified, the buyer is compensated up
to the full purchase price of the item in question.
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