What is an escrow account?
An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction. This means a trusted third party such as escrow will secure the funds in a trust account. The funds will be disbursed to the merchant after they have fulfilled the escrow agreement. If the merchant fails to deliver their obligation, then the funds are returned to the buyer.
How does Escrow Work?
Escrow reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied.
- Buyer and Seller agree to terms - Either the Buyer or Seller begins a transaction. After registering at escrow, all parties agree to the terms of the transaction.
- Buyer pays escrow - The buyer submits a payment by approved payment method to our secure escrow account, escrow verifies the payment, the seller is notified that funds have been secured 'In Escrow'.
- Seller ships merchandise to buyer - Upon payment verification, the seller is authorized to send the merchandise and submit tracking information. Escrow verifies that the buyer receives the merchandise.
- Buyer accepts merchandise - The buyer has a set number of days to inspect the merchandise and the option to accept or reject it. The buyer accepts the merchandise
- Escrow pays the seller - Escrow releases funds to the seller from the Escrow account.