How to use Escrow Service

Using Escrow service

Escrow service is a safe payment instrument. Through escrow, sellers can protect themselves against buyers who breach payment agreements. The same applies to buyers, they can use escrow to protect themselves against sellers, in case purchased or delivered item does not meet expectation. 

Escrows are operated by trusted third party companies. Trading partners puts payment in safe custody until all predefined condition is met. When condition is met, the trusted third party executes the release to the predefined destination.

Why use Escrow?

An Escrow is a safe and easy payment instrument which protects sellers against non-payment, most especially from a distant buyer and which equally protects buyers against supply of below-expectation goods by a distant seller. 

How it works?

§  Using an escrow services is subject to agreement between you and your trading partner. Both of you have to agree to using the service. You also have to agree on product price and other conditions such as time of delivery.

§  The buyer then pays the purchase price into the account of an escrow service company.

§  The escrow company advises the party concerned that the agreed amount is in escrow.

§  Once the seller or buyer meets his or her obligation, the party concerned will provide a pre-agreed irrevocable payment instruction to the escrow company to be granted payment.

§  The escrowed amount will be transferred to the party concerned once the escrow company receives the payment instruction.