Karrot introduces secure deposit transfers to prevent used-car scams

[Financial News] Karrot has introduced a secure money transfer service for users buying and selling used cars directly. The service holds the buyer’s deposit in a separate account and transfers it to the seller after verifying that the vehicle owner and the account holder receiving the deposit are the same person. The goal is to prevent fraud and disputes that may arise during transactions and encourage used-car trading on Karrot.
According to industry sources on the 29th, Karrot’s secure money transfer service is available for direct-sale listings posted by individual members who have completed used-car ownership verification, and there is no fee. The maximum amount that can be transferred at a time is less than 10 million won.
Users can access the service by selecting “Secure Deposit Transfer” at the top of a chat in the Karrot app. After the buyer and seller agree on the terms of the transaction and the deposit amount, the buyer enters the deposit amount and an account number for a refund, and a virtual account at Nonghyup Bank is issued.
After receiving a deposit notification, the seller selects “Receive Settlement” and enters an account number. Karrot then verifies that the listed vehicle’s owner and the account holder are the same person and checks the transaction amount before transferring the funds. If the seller’s account shows signs of fraud or a violation of operating policies, Karrot halts the transfer and automatically refunds the buyer.
A refund mechanism has also been put in place to cover transaction cancellations or delays in the seller’s acceptance. If the buyer cancels the transaction before the funds are transferred, or the seller does not accept the settlement within 48 hours of the deposit, the escrowed funds are automatically returned to the buyer’s account.
Karrot Used Cars requires ownership verification for all direct-sale listings. Its guide to direct used-car transactions explains vehicle inspection and title transfer procedures, and recommends inspecting the vehicle in person before sending a deposit and handing it over after receiving payment.
A Karrot representative said, “We hope this secure money transfer service will ease the burden of sending and receiving payments and help foster a trustworthy culture of direct transactions,” adding, “We will continue to build an environment where users can buy and sell used cars with peace of mind.”
[email protected] Jang Min-kwon Reporter