- Escrow Overview
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, Firstcrow 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?
Firstcrow 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 Firstcrow, all parties agree to the terms of the transaction.
Buyer pays Firstcrow - The Buyer submits a payment by approved payment method to our secure Escrow Account, Firstcrow 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. Firstcrow 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 Firstcrow pays the Seller - Firstcrow releases funds to the Seller from the Escrow Account.
- The Strategy
- Frequently asked questions
The buyer or seller clicks 'Create Escrow Transaction' and fills out the required entries. From there, the buyer has X days to send the required funds for the transaction. Once the funds are received, the seller is notified and will ship/send/release the product or service the buyer purchased and the 'inspection period' has begun. (When setting up the transaction, make sure to leave enough time for shipping as well.) When the buyer receives their product/service they will either click 'Release Funds' if they are happy with the purchase to send the funds to the seller or they can click 'Start Dispute' if there is a problem. If the buyer doesn't click either option the escrow will time out after the configured number of days and release the funds to them automatically.
The buyer and seller will both provide testimony and evidence (pictures, tracking numbers, etc.) for their case. A panel of 3 judges will decide the outcome of the case which may be
- (a) refunding the funds to the buyer,
- (b) releasing the funds to the seller,
- (c) a 50/50 split, or
- (d) in the rare case a decision can't be reached, the funds will be released to a verified and registered charity of our choice and the transaction ID published on this website.
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