You’ve seen me write before of a proposal I call addresscrow to promote privacy when items are shipped to you. Today I’ll propose something more modest, with non-privacy applications.
I would like PayPal, and other payment systems (Visa/MC/Google Checkout) to partner with the shipping companies such as UPS that ship the products bought with these payment systems.
They would produce a very primative escrow, so that payment to the seller was transferred upon delivery confirmation by the shipper. If there is no delivery, the money is not transferred, and is eventually refunded. When you sign for the package (or if you have delivery without signature, when it’s dropped off) that’s when the money would be paid to the vendor. You, on the other hand, would pay the money immediately, and the seller would be notified you had paid and the money was waiting pending receipt. The payment company would get to hold the money for a few days, and make some money on the float, if desired, to pay for this service.
Of course, sellers could ship you a lump of coal and you would still pay for it by signing for it. However, this is a somewhat more overt fraud that, like all fraud, must be dealt with in other ways. This system would instead help eliminate delays in shipping, since vendors would be highly motivated to get things shipped and delivered, and it would eliminate any communications problems standing in the way of getting the order processed. There is nothing much in it for the vendor, of course, other than a means to make customers feel more comfortable about paying up front. But making customers feel more comfortable is no small thing.
Extended, the data from this could go into reptuation systems like eBay’s feedback, so that it could report for buyers how promptly they paid, and for sellers how promptly they shipped or delivered. (The database would know both when an item was shipped and when it was received.) eBay has resisted the very obvious idea of having feedback show successful PayPal payment, so I doubt they will rush to do this either.