Third-Party Verification Explained
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Third-Party Verification Explained

3 Min.

Basics

In order to guarantee the accuracy, companies often employ external organizations to conduct third-party verifications (TPV) that thoroughly examine and validate customer information and intentions. This process is particularly useful in sales departments where the objective is to verify a potential customer's interest or agreement to purchase a product before directing them to a salesperson. TPV is also implemented in situations where customers wish to provide or update information but are unable to do so physically, such as during phone or online interactions, where a contract or physical copies cannot be readily exchanged.

Why Do We Need TPV?

In order to ensure accountability, companies rely on third-party verification to access the documented interaction history maintained by an independent party. This becomes crucial when customers dispute unauthorized changes or transactions. To successfully complete the verification process, customers must provide their consent for the impending transaction, thereby establishing its legal validity.

The implementation of third-party verification is often mandated by law, particularly due to the escalating concerns surrounding Internet security and do-not-call phone lists. For instance, modifications to telecommunication or utility services, such as electricity or gas, necessitate third-party verification as stipulated by the Federal Trade Commission.

Presently, third-party verification has become the customary procedure for any phone or digital transactions where obtaining a signature or confirmation is impractical. In 2018, the Federal Communications Commission enacted a new rule to fortify its third-party verification protocol in response to allegations of misrepresented calls and fraudulent approval processes.

Example of TPV

During a customer's interaction with a cable television sales representative, a notable illustration of third-party verification emerges. In this scenario, the customer engages with the sales representative to modify their existing plan. After assessing various options and confirming the customer's desire to proceed, including their willingness to enter into a new contractual agreement, the sales representative initiates a conference call with a third-party entity. This TPV provider operates independently of the cable company and primarily functions as a timed and tracked recording service.

Subsequently, the sales representative meticulously examines the proposed changes along with the customer's personal information. To solidify the new contractual arrangement, the customer is then requested to provide their verbal agreement, which is recorded during the conversation. This process ensures the customer's consent and creates a verifiable record of the agreement.

Conclusion

Third-party verification serves as a vital mechanism for companies to ensure the accuracy of customer information and intentions. It plays a crucial role in scenarios where customers need to provide or update information without physical documentation. TPV not only allows companies to reference independent third-party records in case of disputed account changes or transactions but also fulfills legal requirements, particularly in the context of heightened Internet security and do-not-call phone lists. Ultimately, TPV reinforces trust, reliability, and adherence to regulatory standards in the customer-business relationship.

Third-Party Verification
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Hexn operates under HEXN (CZ) s.r.o. and HEXN Markets LLC. HEXN (CZ) s.r.o. is incorporated in the Czech Republic with the company number 19300662, registered office at Cimburkova 916/8, Žižkov, Praha. HEXN (CZ) s.r.o. is registered as a virtual assets service provider (VASP). HEXN Markets LLC is incorporated in St. Vincent and Grenadines with the company number 2212 LLC 2022, registered office at Beachmont Business Centre, 379, Kingstown, Saint Vincent and the Grenadines