Whether you are a real estate professional who is handling things for a buyer, or the buyer who is interested in purchasing a home or piece of property, at some point an earnest money deposit is going to be a part of the real estate transaction.
Many years ago, it was commonplace for the buyer to provide the earnest money deposit via a personal check or a cashier’s check. Today, advancing technology has paved the way for earnest money deposit platforms, a more convenient and safer way to send money.
Electronic money transfer platforms are an ideal means of sending money for many individuals, organizations, and industries. But as an earnest money deposit platform, it is especially useful and beneficial. Many real estate professionals already prefer using an electronic money transfer platform for a variety of reasons.
Consider the following benefits of an earnest money deposit platform and you’ll quickly realize why it is a much more viable option than any other method for sending money.
There are other benefits of earnest money deposit platforms that are more important, but convenience is easily the most obvious. Writing a personal check involves scheduling a meeting between the real estate professional and the buyer. Getting a cashier’s check also involves traveling to the bank first.
With an electronic payment platform, a real estate broker can instantly send a request to the buyer for funds, and the buyer can respond within seconds, transferring the money without the need to go to the bank or meet with the agent to hand over a check. This helps to keep the mortgage process flowing smoothly without interruption, and there is no need to wait for a check to clear.
Even better, earnest money deposit platforms are available for use 24/7 — there is no need to wait for a bank to open, and, if needed, customer service is available around the clock to offer assistance.
The real estate industry, like many others, is subject to fraud and attacks by scammers and cyber criminals. Real estate fraud comes in many forms, including earnest money deposits. Cyber criminals use sophisticated methods to hack into email accounts and acquire private banking info. Other scammers utilize old-fashioned methods, relying on the trust of real estate professionals and often successfully stealing earnest money deposits.
To combat this and significantly minimize the risk of real estate fraud, earnest money deposit platforms are equipped with advanced security protocols and encryption tools. For example, a popular secure electronic money transfer platform from paymints.io uses AES-256, a bank-level security system that prevents wire fraud and improves enterprise security and identity protection.
This ensures that the funds are delivered only to the correct recipient, and reduces the potential for fraudulent activities, inconveniences, and delays in the mortgage process. Additionally, the funds can easily be traced, unlike with some other money transfer options. This also reduces the chances of theft and ensures accountability.
Earnest money deposit platforms are just simple to use. Once a user enters their own banking information, they can easily send money to anyone with just a few clicks of the mouse or key presses on a mobile device. Electronic payment platforms also typically offer speedier approval and processing times, making the entire earnest money deposit fast and stress-free.
Banks and financial institutions often charge high fees for a money transfer or cashier’s check, which, when added to the already substantially large closing costs, are just extra fees you don’t really need. Some banks even charge fees for both the outgoing and their incoming transfer, costing you even more. While there are still fees involved with an earnest money deposit platform, they are usually significantly lower, saving you money on closing costs.
The reason for lower fees is simple — electronic money transfer platforms have much less overhead, allowing them to pass the savings onto you.
The financial transfer industry is heavily regulated, and being compliant is especially important. Regulatory industries monitor any business that is involved with the transfer of money. Ensuring compliance is a top priority for any reputable money transfer platform. Licensing is required, and advanced technology has helped to develop the infrastructure for remittance companies to be compliant with international banks as well.
In addition to being compliant with International banks, money transfer platforms also have built-in currency conversion tools so that you know exactly how much you need to deposit when sending earnest money internationally. Once again, this makes things much easier for both the buyer and the real estate brokers and cuts down on time wasted due to the wrong amount of money being sent.
For all of the above reasons, earnest money deposit platforms are just a much more viable, preferred, and beneficial tool for sending earnest money as well as many other transactions. From lower fees, less paperwork, less time spent waiting in line at a bank or scheduling meetings, to improved security and a reduction in the potential for real estate fraud, there simply is no reason that anyone in the real estate industry or involved in a real estate transaction shouldn’t be using a secure ACH transfer platform like paymints.io.
An electronic money transfer platform makes it easier than ever to quickly connect with individuals and businesses, and the advanced, intuitive apps ensure safe and secure transactions.
To learn more about how an earnest money deposit platform like paymints.io can help you in your real estate transactions, contact us. You’ll quickly see for yourself why it’s the top choice for real estate professionals all over the country.