You’ve heard that the new standard in real estate transactions, electronic earnest money, is safer and more efficient, but do you really understand why? Unlike the old method of submitting earnest money by a paper check, TrustFunds electronic earnest money has multiple steps of verification in place to protect the buyer’s personal banking information including a step that adds a layer of authentication using specific information known only by the buyer and their agent.
Instead of the buyer writing a paper check and handing it off to their agent who then passes it along down the chain of those who need to receive it, the agent generates a secure payment request for the buyer which contains information known only by the buyer and themselves. Then the buyer connects to TrustFunds secure payment system where they submit their banking information themselves. After the payment has been made, the agent and the trust account holder receiving the funds can track it through each step of the process. During this entire process, the only person who ever had access to the buyer’s banking information is the buyer.
When it comes down to it, submitting earnest money electronically is the only way to process earnest money securely. Paying earnest money by paper check simply puts the buyer’s personal banking information at risk as the check changes hands throughout the transaction.