From XU Magazine, 
Issue 20

Shieldpay: certainty of payment Putting trust at the heart of fast payments

Shieldpay protect both sides of any transaction by verifying the identity of both sides. Funds are held securely in escrow – the Shieldpay vault – and are released with fast pay outs to the seller, when both sides agree they’re happy. We’re here to make getting paid more secure, more transparent and more efficient than ever before.
This article originated from the Xero blog. The XU Hub is an independent news and media platform - for Xero users, by Xero users. Any content, imagery and associated links below are directly from Xero and not produced by the XU Hub.
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A question of trust

Both consumers and businesses in the UK are used to the benefits of moving money much more quickly, but fraudsters have cashed in as well. With payments arriving within minutes, money can be in businesses accounts and spent again before a red flag has even been raised.

Just in 2018, due to ‘Authorised Push Payment’ scams alone, £354 million was placed in the hands of fraudsters with only £83 million ever recovered. This type of fraud occurs where unwitting consumers or businesses are duped into transferring money out of their accounts and into the accounts of fraudsters when making a payment.

Just last month Which? reported that typically £674 is lost every minute to this crime, and according to our own research, half of people are put off from completing transactions online, for fear they’ll land straight into a fraudster’s pocket.

Businesses, making bigger, more frequent payments, stand to lose out even more. This is particularly important for firms that provide legal and professional services that have the unenviable responsibility of processing high value payments for clients.

It’s for this reason that we built Shieldpay, to create a platform that could protect both businesses and consumers from preventing any payments to another party who aren’t who they’re claiming to be.

Our secure payments solution verifies the identity of both sides of any transaction. We hold funds securely, until both sides agree they’re happy with the exchange of goods or services. Both buyer and seller are totally in control, with funds released instantly when both parties agree. Our solution is a digital escrow, which means that not only can it make every day fast payments secure enough for modern life, but its enhanced security can make the entire process of business transactions much faster and more efficient than ever before.

Total confidence

As long as sophisticated fraud prevention and security technology is used, there’s no need for the story to be all doom and gloom. The other positive, in addition to fraud protection, is the total confidence that comes from speed and certainty of payment. The average small business in the UK is owed nearly £25,000 in late invoices. Tallied up across the year, late payments end up costing small businesses £2bn annually.

Fast, secure payments also mean those in insecure ‘gig’ work or on low pay can be sure they’ll get paid and get their wages faster. It makes businesses more agile and cuts down on cashflow problems. Burdensome everyday tasks such as paying rental deposits or hiring wedding caterers can be half as stressful, if you know your money will be safe until all parties have been verified and released instantly when both sides are happy.

In addition to Escrow

In addition to Escrow, we can do the standard payment piece, too. Fast, direct payments for when you’re dealing with a trusted partner.  

We still verify both parties with our bank grade security checks, but the payment isn’t held in escrow – it’s passed straight through, like you’d be used to with other payment providers you might have used.

The payee will receive funds within 3 or 4 days of payment, rather than 8 to 10.  So, once you’ve dealt with a new partner – if you want to pay Direct, you have that option, too.

How does it work with Xero?

Shieldpay for Xero is a dedicated app that connects your Xero account with a Shieldpay account. Once you have linked your accounts you can use Shieldpay for Xero to set up fast, secure invoice payments.

  • Our ‘Pay with Shieldpay’ button will appear on your invoices.
  • You’ll be able to instantly accept and verify payments by card, bank app and bank transfer.
  • Your customers simply click the button and pay.
  • You’ll both be able to see the payment is held securely in escrow – the Shieldpay vault.
  • And when you’re both happy with the transaction, the payment is released with real-time payouts powered by Bank Transfer or Visa Direct – a fast, convenient and secure way to withdraw money to the cards you already carry.

With the funds held in Escrow until both sides are happy to release, both buyer and seller can enjoy total peace of mind in knowing they are protected by an independent third party – Shieldpay.

So, whether you’re a tradesperson, contractor, manufacturer or exporter with Shieldpay for Xero you can invoice for any size job over any period of time and have total confidence that you’ll receive payment on time, every time – with fast pay-outs when you’re done.

Shieldpay partner with global leaders in payments in banking – in 2018 we agreed a global partnership with Visa. Our patented payment process creates a unique environment of trust and security that every other payment system lacks.

Why leave it there?

Find out more

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