terms management

Why You Need A Third Party Vendor for Your Online Terms

B2B for Enterprise-11

Why third-party vendors can be an asset when it comes to online terms management.

Using a third-party vendor to host your terms doesn’t just help your team streamline the management of those terms, it’s actually proven to be a better option from both a security and legal compliance standpoint in many cases. 

How do we know this can be an asset? The courts have made it very clear. 

The courts have given us plenty of precedent to illustrate this point. For example, companies that maintain records of acceptance in-house run the risk of the court thinking that the records are fraudulent or forged. 

Related: Clickthrough Litigation Trends: 2020 Report

This is because the company is in exclusive control of the record system and is in the position to produce a record that meets the company’s needs (i.e., forge contract acceptance records and versioning to prove the company’s position in the lawsuit).

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Besides the obvious precedent, the expectation around the quality and quantity of evidence favors third parties. 

Courts are becoming increasingly demanding with the evidence they expect a company to produce in order to prove a user accepted their terms. 

Keeping up with the court’s evidentiary expectations requires constant monitoring of the industry’s litigation and continuous updates to the company’s contracting process and record-keeping system. Third party solutions take this responsibility out of your hands. They are able to dedicate teams of people to keep up with industry standards and ensure the product meets those requirements.

Related: How Online Terms Can Make or Break Marketplace Apps

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How can I be sure my third party vendor is secure?

When it comes to security, working to ensure a third-party vendor meets your needs is essential. PactSafe has multiple  security measures in place to prevent any data breaches or security issues for our customers. 

One of PactSafe’s  product objectives is to provide a secure & scalable platform for all of our customers, regardless of their implementation.

What are PactSafe’s security credentials, and why are they important? 

We are a SOC 2 compliant organization, which dictates industry recognized standards and practices are in place for everything we do to ensure data security for our customers and our own systems. 

We also offer advanced features, such as API encryption and secure fields, to keep data flowing in and out of PactSafe airtight.

These same measures also dictate who has access to your data from the PactSafe side. Only employees who absolutely need access to customer data in order to perform critical functions are granted access.

Learn more about how to manage your terms well - and pitfalls of poor terms management in our latest eBook, How Online Terms Can Make or Break Marketplace Apps. 

Download the "How Online Terms Make or Break Apps" eBook

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