What is Escrow? How Does Escrow Work?
What is Escrow?
An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company.
Escrows are very useful in the case of a transaction where a large amount money is involved and a certain number of obligations need to be fulfilled before a payment is released like in the case of a website being built where the buyer might want confirmation of the quality of work being done before making a full payment, and the seller doesn’t want to extend a massive amount of work without any assurance that he or she will receive payment. While traditional escrow service is quite difficult and must be obtained through banks and lawyers, Escrow.com provides online escrow services at affordable rates. While the payment is ‘In Escrow’ the transaction can be safely carried out without risk of losing money or merchandise due to fraud. This eliminates all legal jargon and allows for secure transactions and confident buyers and sellers.
How does Escrow Work?
Escrow.com 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.com, all parties agree to the terms of the transaction.
- Buyer pays Escrow.com – The Buyer submits a payment by approved payment method to our secure Escrow Account, Escrow.com 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 authorised to send the merchandise and submit tracking information. Escrow.com 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.com pays the Seller – Escrow.com releases funds to the Seller from the Escrow Account.
Transaction is complete – safely and securely!
Knowing at every step
Every time you log into Escrow.com, our status updates will let you know exactly where you are in the transaction process and if there is action required by you.
Having access to this step-by-step timeline means, whether you’re a buyer or a seller, you’ll never get stuck wondering what to do next or where you are in the transaction.
When you make a transaction using Escrow.com, your funds are held in secured, non interest bearing trust Escrow Accounts until the transaction is completed. This ensures that your transaction is protected against chargebacks, fraud or wrongly described goods. Learn more about Escrow Accounts.
Personal service behind every transaction
Our licensed and regulated services are also backed by our experienced and knowledgeable escrow officers. Our friendly escrow professionals are available to assist you personally with any need that may arise.
At Escrow.com, we offer live phone support Monday through Friday, from 8:00 am to 11:00 pm Pacific. In addition, we offer email support 24 hours a day, 7 days a week.
Why Should We Pay Online?
With dozens of other payment options available such as checks, drafts, money orders, and electronic bank transfers, one may wonder why so many people use this new method of payment. Indeed, the older payment methods are tried, tested, and a lot more comfortable for some people. However, online payment offers exclusive advantages that other payment options don’t.
When paying online, you can easily use your credit card to process a transaction much faster than the check-and-stamp method. Automated payments also mean that there are no delays or late penalties. Contrary to popular belief, it is much safer to conduct your transaction online as everything is documented, and there are no sensitive details on paper. Online payment eliminates clutter by, in some cases, eliminating the need for paper bills that require filing. It makes organizing and keeping track of payments easier and more convenient. Finally, if using online payments, many banks will provide graphs and information that help you track your spending and keep your budget on task.
There are many types of transactions that can be made online, everything from paying your phone bill to purchasing small gifts for family members. For larger transactions, though, you may want to seek the services of an escrow company. By putting your money into an escrow account, you can protect yourself from fraud.
Escrow.com offers many types of payment options including wire transfers, checks and money orders, credit cards and PayPal. Payment types may have certain limitations, however. For example credit cards and PayPal are subject to additional fees and have a maximum of $5,000 while checks and money orders have a $2,000 maximum and are subject to a ten business day hold.
Advantages of Using Escrow.com
As one of the leading providers of escrow services online, Escrow.com provides a host of advantages for people who choose to transact with it. Whether it is digital goods, vehicles, antiques, jewelry, art work, or domain names and websites, Escrow.com ensures that all buyers and sellers are protected equally and their disputes dealt with the utmost concern. Escrow.com verifies the funds sent by the buyer and keeps them in our secure trust escrow account for the seller. The seller ships the merchandise only after the buyer has made complete payment to Escrow.com. Escrow.com tracks your merchandise to make sure that it is delivered in time according to the conditions mentioned in the agreement. The seller is not paid until the buyer accepts the merchandise and has the chance to fully inspect it. After the buyer inspects and accepts the merchandise, the funds will be moved from our escrow account to the seller’s account.
There is no scope for uncertainty or worries as the entire transaction is conducted under the supervision of Escrow.com’s honest and diligent professionals. With Escrow.com’s reliable brand shielding your transaction, you can rest assured that your funds are in safe hands, free from fraud. The sale is highly simplified as you, the buyer, just pay off your price and let Escrow.com handle everything else, be it shipping, delivery or quality inspection. Escrow.com’s sliding revenue scale ensures that large transactions don’t mean huge chargebacks and fees.
Using a licensed escrow service to buy and sell merchandise, services and more is the most convenient way to complete transactions online. Facilitated by a trusted third-party, the escrow process acts as your personal tool to ensure a safe, secure and intuitive sale for both buyers and sellers.