Third-party fund custody is a kind of service, which ensures the safety of the funds of buyers and sellers by letting the third party handle the capital circulation. This third party may be a professional intermediary, such as Alipay, PayPal and other Internet payment platforms. After purchasing goods or services, the user's funds will be deducted through the system of the third-party platform and retained by the third-party organization, and the merchant will not receive the funds until the order is confirmed. This approach reduces risks and fraud, while protecting the rights and interests of consumers and enterprises.

What are the advantages of using third-party fund custody?

Third-party fund custody has many advantages. First of all, it creates an environment based on trust, which means that the security of funds is greatly guaranteed and consumers can conduct transactions with greater peace of mind. Secondly, third-party fund custody institutions usually have strong anti-fraud technology and risk management and control system, which helps to avoid fraud risks and protect the legitimate rights and interests of merchants and buyers. In addition, third-party fund custody can also improve transaction efficiency, shorten the time of fund transfer, and allow buyers and merchants to complete transactions in a shorter time.

What scenarios are third-party fund custody widely used in?

Third-party fund custody is widely used in online e-commerce platforms, ticketing websites, online games, online education and other fields. In these scenarios, third-party institutions greatly reduce the transaction risk by providing services such as payment settlement and custody. For example, if users shop online, if they choose third-party fund custody, they can store the funds in the third-party custody account when paying, and the merchants can only receive the money after confirming the receipt. For users, such treatment can protect their own funds; For businesses, it can improve credibility and attract more consumers.