What It Is and How It Works
Escrow services act as a middleman for a payment transaction. They ensure the buyer is happy with the product they’ve received and that the seller gets paid accordingly. This solution provides good security and trust that are an essential for high ticket items (i.e. domain names, company buy-outs, etc.) and auction-type websites.
Here’s a step-by-step explanation of how Escrow services work:
Step 1: The Buyer pays for the order to the Escrow service with a credit card, money order, check (business, personal, certified), wire transfer, or direct deposit.
Step 2: Once the Escrow service receives the Buyer’s payment, they will then notify the Seller to go ahead and ship the merchandise to the Buyer.
Step 3: After the Buyer receives the merchandise, he/she then notifies the Escrow service that they are happy with the purchase.
Step 4: The Escrow service then pays the Seller accordingly by either check or wire transfer into your bank account
If the Buyer is not satisfied with the merchandise, he/she can notify the Escrow service that the item(s) has been returned to the Seller. Once the Seller receives the merchandise back, they are given a period of time (about a week) for inspection of returned item(s). The inspection period allows the Seller time to ensure the merchandise was returned in the same condition as it was shipped. After which, the Escrow service will refund the Buyer for the amount paid, less the Escrow service fee.
Who Needs This Solution?
Any business that offers high ticket items or auctions off merchandise should strongly look towards using an Escrow service to protect both the Buyer and the Buyer.
These companies can help set you up with Escrow payment acceptance services for your business:
Know of a good Escrow service provider? Let us know!