How Can We Prevent Users from Bypassing Our Payment System on Hiring Platforms?

Hi! My team is currently developing an order payment mechanism for platforms such as https://fee4bee.com/. We encountered a technical difficulty in exercising control over the status of the transaction. In fact, it looks like this: a person places an ad, finds a suitable contractor, and then simply cancels their order and starts working with the contractor directly without a commission for the site. Do you think it is possible to avoid such a scam?

Location: Vancouver, Canada

Tags: Country-Canada, City-Canada-Vancouver

To address the challenge of users bypassing the platform's payment mechanism by canceling orders and working directly with contractors, there are practical steps and strategies you can implement to mitigate such risks and protect the platform's interests.

🔍 Understand the Issue:
- Analyze the current system and user behaviors to identify loopholes that allow for order cancellations and direct contractor engagement.

🔒 Implement Control Measures:
- Introduce safeguards such as mandatory verification steps or penalties for users who cancel orders and engage with contractors off-platform.

📝 Update Terms and Conditions:
- Clearly outline in your platform's terms and conditions the consequences of circumventing the payment process, emphasizing the importance of fair transactions.

🔧 Enhance Technology:
- Utilize technology to track transactions, monitor user activities, and flag suspicious behavior to prevent unauthorized engagements.

📣 Communication and Education:
- Educate users on the benefits of completing transactions through the platform and the risks associated with direct engagements to foster compliance.

⚖️ Dispute Resolution Mechanism:
- Establish a structured process for resolving disputes related to unauthorized direct engagements, ensuring fairness for all parties involved.

📈 Continuous Monitoring:
- Regularly review transaction data and user feedback to adapt and improve control measures based on emerging patterns and user feedback.

By combining these measures with robust legal frameworks and policies, you can enhance the platform's security and integrity while promoting fair transactions and accountability among users.