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Escrow Information
What is an escrow
service?
An escrow service acts as a third party or
intermediary company for buyers and sellers who have reached an
agreement on an item for sale. The escrow service will hold the payment in
trust until the buyer inspects and accepts the merchandise. Once the buyer
is satisfied, the escrow service will release the payment to the
seller.
How does it work:
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Both the buyer and
seller agree to the terms of the transaction including the price of the
item and shipping costs.
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The buyer sends the
agreed amount to the escrow service.
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The seller ships
the merchandise.
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The buyer inspects
the merchandise.
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The buyer accepts
the goods and the escrow service then pays the seller.
Benefits for buyers:
-
Buyers are able to
inspect the merchandise before the payment is finalized. No more buying
sight-unseen.
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Buyers have the
right to return unsatisfactory items.
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Takes the worry out
of buying from unknown sellers.
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No need to send
personal information to an unfamiliar party.
Benefits for sellers:
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Sellers are
protected against bad credit cards.
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Mediation may be
available in case of a problem.
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Especially useful
for expensive items such as antiques or computer equipment and for
transactions across the country or across the world.
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Added security for
both parties.
How much does this
all cost?
The fee depends on the price of
the item being sold and on the method of payment. It's usually between 2%
and 5% of the item price. The fee can be paid for by the buyer or seller
or can be split equally between the two.
List of companies offering escrow
services:
Tradenable (I-Escrow)
- assist buyers and
sellers in establishing a safe, efficient, and secure transaction. Visit
Tradenable to view their fee
structure.
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