How to Trade Safely in PaperIndex Marketplace

December 8th, 2008
Safe Trading Guidelines
“Praemonitus, Praemunitus” - Latin for “Forewarned is Forearmed.”
Knowledge in advance enables one to be prepared…
Let’s face it. Doing business is fraught with unforeseen risks and unpredictable circumstances. However, with our knowledge and experience, we can minimize the probability of loss. PaperIndex encourages its members to make themselves aware about the risks involved in trading on the Internet and use their sound judgment in dealing with newly found trading partners. To make your trading experience easy and safe, we provide you as much information as possible about potential buyers and suppliers. Below are some safe trading guidelines to help you trade safely in our marketplace.
1. Check the credentials of prospective trading partners
Before engaging in any trading activity, always check the credentials of your potential trading partners. Trade associations, local or online credit agencies, and companies such as D&B (www.dnb.com) can help you check the background of established businesses. In many countries, offices of Registrar of Companies or Secretary of State provide the company registration information on their websites. Visit the website of registration authorities of your prospective partner’s country to find out if it’s a legitimate and licensed business.
2. Carefully check the contact information
Phone number
It is always advisable to contact your prospective partner by telephone prior to initiating any trading activity. If you see inconsistent contact details, for example an address in one country and phone number from another, we recommend you look up the address in the local phone directory of that country to obtain the phone number. Call the number (even if it’s long distance) to confirm that the person you are in touch with actually works for the company. Be suspicious of any person who uses only e-mail address and cell phone for communication and is reluctant to reveal a telephone number.
Address and fax number
Beware of the companies that provide only PO Box number and fax number as their contact information on their websites. (PaperIndex doesn’t allow the businesses to list their company if they provide only the PO Box and fax numbers in their contact information.)
Email
Do not solely rely on email to contact and conduct business with new business partners. Emails coming from a company’s domain do not suggest that the company is real and genuine. It’s easy to forge email addresses and even if the emails are coming from a company’s domain name, the business owner may still be untraceable.
Website
Having an impressive website doesn’t guarantee the existence or legitimacy of a business entity. A content-rich website with well-presented company and product information indicates the professionalism of the business owner / management however; this shouldn’t get you lulled into a false sense of security.
3. Be wary of too good to be true offers
If you are a buyer
Be extra cautious when a supplier is offering to sell at a price substantially below the current market price.
If you are a supplier
Be wary of buyers who offer to buy at an above-market price.

It is easy to be tempted by lucrative offers, but they are often attempts to swindle. Remember, if it sounds too good to be true, it probably is.
4. Guard against payment risk
If you are a buyer
If a supplier wants advance payment before fulfilling the order, make sure you have done a background check on the supplier. If you haven’t done any background check, refuse to pay the advance or ask for a different form of payment. If a supplier seems to be too focused on payment than any other issue, extra caution is warranted. Additionally, do not transfer funds to personal bank accounts. Also, be cautious if the bank account of the supplier is located in a different country than the shipping address.
If you are a supplier
If you are dealing with an unfamiliar party, avoid selling your products on open-account in which case you are extending credit to the buyer. Instead, ask the buyer to open a letter of credit (L/C). However, due to forged documents there is some possibility of fraud in case of letter of credit payments too. Minimize the potential for fraud by contacting the L/C issuing bank. Be sure to check the L/C number, name and address of the issuing bank, shipping date, validity date, opening date, opening place, loading and unloading ports, period of presentation, L/C amount as well as the details of partial shipment and trans-shipment.
More about payment methods…
a. Escrow services
It is advisable to use escrow services when dealing with new business partners. Both buyers and sellers are protected using escrow services as escrow companies act as an independent third party to protect the interest of buyers and suppliers.
Buyer Protection
I. Escrow services track the shipped merchandise and verify that it was delivered.
II. The supplier isn’t paid until the buyer accepts the merchandise, or the inspection period expires.
Supplier Protection
I. Escrow service confirms when the buyer receives merchandise.
II. The supplier is authorized to ship only after the escrow service verifies that the buyer has deposited the funds.
Escrow services provide the peace of mind to both – buyers and suppliers. However, beware of fraudulent escrow services if you are thinking of using online services. For more information about online escrow fraud, please visit
http://www.lookstoogoodtobetrue.com/fraudtypes/escrowfraud.aspx
b. Telegraphic Transfer (T/T)
It is not wise to accept a supplier’s request for pre-payment using telegraphic transfer. In most cases, a request for T/T payment involves an attempt to defraud.
c. Money transfer using Western Union and MoneyGram
Many cases of fraud involve payment via Western Union and MoneyGram, where after a buyer sends money, the receiver breaks contract and disappears. It’s not possible to trace the real name and address of account holders with money wiring services such as Western Union and MoneyGram.
5. Don’t expect or send free samples
If you are a buyer
Request samples to check the quality of product. Order a sample before placing a bulk order to make sure the product meets your requirements. Be prepared to pay for samples – including the shipping cost.
If you are a supplier
As a seller, always request payment for sample and / or its shipping cost before dispatching the sample, especially if your product has a high resale value.
6. Avoid shipping risk
As a buyer, you should order pre-shipment inspection of products to protect yourself against the poor quality of goods. You can demand the inspection as a condition and link it to payment. Pay close attention to shipping or contact addresses located in countries with a high incidence of online fraud such as Nigeria.
7. Prepare a clear contract
You should prepare a legally binding trade contract, which should include sales terms and conditions, payment method, an arbitration clause, product specifications, quality inspection, etc. Also, have your attorney or accountant review the contracts before signing it.
8. Be skeptical about inquires from regions of high fraud-risk
Make sure you have taken enough precautions before conducting business in regions with high reported incidences of online fraud such as Eastern Europe, Western Africa, and Central America.
9. What to do if things go wrong
Unfortunately, not every precaution works and as in offline world, not every trade goes well. If you are unhappy over a situation:
a. Contact your counterpart directly
In most cases, the business partners can negotiate and arrive at a solution. Contact your trading partner and arrange a telephone call or face-to-face meeting. This usually resolves the situation. Most buyers and sellers are honest and dependable and problems may simply be a matter of misunderstanding due to language or cultural differences.
b. Try a third party mediation service
Third party mediators attempt to contact the concerned person and try to resolve differences fairly.
c. Try to organize a “chargeback”
If you have paid by credit card, contact your bank to see whether they offer a “chargeback” service. A “chargeback” reverses the credit card charge, and is similar to a refund.
d. Contact the local Consumer Affairs agency or inform law enforcement authorities
If none of the above measures are effective, you can contact your local Consumer Affairs organization inform law enforcement authorities in your and your trading partner’s area.
e. You should also immediately contact PaperIndex about any suspected cases of fraud involving PaperIndex members so that we can review the status of the member’s account.
10. Additional Resources
Following is a collection of links that members can visit for further information about safe trading on the Internet:
Internet Fraud & Complaints Center www.ic3.gov
National Fraud Information Center (NFIC) www.fraud.org
Federal Trade Commission www.ftc.gov
Association of Certified Fraud Examiners www.cfenet.com
Financial Crimes Enforcement Network (FinCEN) www.fincen.gov
Internet Crimes Group Inc. www.icginc.com
Internet ScamBusters www.scambusters.com
Better Business Bureau www.bbb.org
Anti-Phishing Working Group www.anti-phishing.org
11. PaperIndex policy for reported cases of fraud
At present, when a user reports a case of fraud to us, we block the suspect’s company profile and their buying and selling leads and cancel their membership to eliminate the possibility of repeat offences. We also maintain a blacklist of offenders to ensure that they do not gain admittance to PaperIndex at a later date. Please note that these steps are taken on the suspicion of fraud, before obtaining evidence. The PaperIndex User Agreement provides that PaperIndex can cancel suspected/offending member’s membership privileges at its own discretion.

PaperIndex does not and cannot act as a mediator in disputes between buyers and sellers regarding cases of fraud. By its very nature, international fraud is extremely difficult to prosecute effectively and resolve satisfactorily. All PaperIndex members are advised to be vigilant at all times.

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Find Pulp & Paper Industry Information with Google-Powered Custom Search Engine

June 24th, 2008

Ever tried locating a needle in a haystack? This could be frustrating. Isn’t it? And, so could be locating pulp and paper industry information on the Internet. No worries. PaperIndex has a solution to this problem. PaperIndex has enhanced it’s custom pulp and paper search engine – PaperPundit (www.paperpundit.com)

Powered by Google, PaperPundit searches only the pulp, paper, and related industry websites, which means, you get targeted results in response to your search queries. For example, if you search for word “paper”, PaperPundit will show you results from the web pages that have information about paper as a product and not from the websites that talk about ‘working papers’, ‘technical papers on nano-technology’, ‘research papers in rheology’, or “ballot paper voting system”. You get only the pulp and paper results, nothing else! And, it’s absolutely FREE to use.

Remember, PaperPundit delivers you unbiased results from more than 22,000 pulp and paper websites using Google’s search algorithm. Use PaperPundit to:

*Get targeted and relevant results fast
*Save time and efforts
*Spend more time visiting websites than scouring through numerous search results

Moreover, PaperPundit gives you option of searching Google from its homepage in case you are not satisfied with the search results. Make PaperPundit your homepage now and access two search engines (PaperPundit and Google) from one page!

Visit and bookmark PaperPundit today to start searching only the pulp and paper industry websites.

Adding Your Website/Blog to PaperPundit

Adding your website or blog to PaperPundit is easy and free. Just follow the steps below to submit your site to PaperPundit’s search index:

1. Before submitting your site, please make sure it’s already not included in our index by searching PaperPundit for your company name.

2. If your company name or website address doesn’t appear in search results, please fill the submission form to submit your website.

Please submit only the pulp, paper, and related industries websites. Non-pulp & paper websites will not be considered for inclusion in PaperPundit search index.

Should you have questions, please feel free to contact us.

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