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How to check the counterparty?

P2P transactions are becoming more and more popular every day, because they provide an opportunity to buy or sell goods and services without the involvement of intermediaries. But with such convenience comes the need to carefully check the counterparty (the person with whom the P2P transaction is being conducted) to ensure its reliability.


1. Check the status of a legal entity or individual entrepreneur.

If you are dealing with a business, you can check its registration and status using special online services (for example, YouControl, Better Business Bureau, etc.). To search, you can use:

- TIN code;

- name of founder or director;

- company name;

- registration address;

- phone number;

- the search can also include historical data.


Based on the search information, you will be able to find out the current status of the business, whether there are open legal proceedings against this business, whether the business is on the sanctions lists, etc.


In addition, you can also ask for documents confirming the identity (passport or driver's licence).


2. Check the counterparty on social networks.

A modern person has at least one account on the most popular social networks. If you could not find your counterparty on any of them, then this is the sign that it is better not to start cooperation.


If your counterparty has an account on social networks, then study in detail his profile, interaction with followers, comments, etc. Look for any negative reviews or complaints from other users. You can also check forums to see if the counterparty has a good reputation.


3. Checking reviews of previous clients of the counterparty.

If the counterparty works on platforms like eBay, Amazon or Etsy, it is also important to read customer reviews, find out exactly how the transaction went, whether there were any problems during transactions, etc. In addition, on such services, you can find the rating of the counterparty. The better the rating, the more reliable the seller.


🟩"Green" flags when making p2p deals

1. Using a reliable and authoritative P2P platform that requires user identification. This process helps ensure that users of the platform are trustworthy and verified individuals. Also, proven P2P services guarantee assistance when resolving disputed situations.


2. The P2P platform has an escrow system (temporary storage), which helps reduce the risk of fraud and provides a safe way to conduct P2P transactions. An escrow system delays payment until both parties are satisfied with the transaction.


3. Using secure payment methods that provide buyer protection and can help you get your money back if something goes wrong.


🟥"Red" flags when making p2p deals

1. The counterparty forces you to make a quick decision.

2. The counterparty offers a deal that seems too good to be true.

3. The counterparty requests personal information.

4. The counterparty requires prepayment or offers unusual payment methods.


If you have doubts about the counterparty, it is better to refuse the deal. To minimize risks, start with small transactions and discuss the terms of the transaction with the counterparty in advance. Be sure to keep records of communications and transactions in case a dispute arises and evidence is needed to resolve the issue.