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An escrow service acts as a third party or intermediary 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. If you're worried about sending cash or merchandise to someone you don't know, then an escrow service might be right for you. For help finding an online escrow service, start by checking out the listings in the Yahoo! directory.
How it works:
- Both the buyer and seller agree to the terms of the transaction including the price of the item and shipping costs.
- The buyer sends the agreed amount to the escrow service.
- The seller ships the merchandise.
- The buyer inspects the merchandise.
- 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.
- Buyers have the right to return unsatisfactory items.
- Takes the worry out of buying from unknown sellers.
- No need to send personal information to an unfamiliar party.
Benefits for sellers:
- Sellers are protected against bad credit cards.
- Mediation may be available in case of a problem.
- Especially useful for expensive items such as antiques or computer equipment and for transactions across the country or across the world.
- Added security for both parties.
Frequently asked questions:
Here are some general questions and
answers about online escrow services. Each service may handle escrow issues
differently, so please be sure to check around and find the best service for you.
- What if the merchandise is unsatisfactory, damaged, or doesn't fit the description?
The buyer returns the goods, and the escrow service returns the payment to the buyer.
- How long does this process take?
That depends. If the buyer pays with a credit or debit card or a wire transfer and the seller uses an overnight delivery service, the goods can be delivered within one to three days. Payment by check or money order may delay the process by several days.
- 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.
- Where does the escrow service hold the money?
The money is held in a secure trust.
- How do I know I can trust the escrow service?
Do some research. Some services are affiliated with major banks. Check with the Better Business Bureau. Ask others who have used the service. Check for Trust-e or VeriSign certification. Call or email the service and ask about their policies.
- What if something goes wrong?
Some escrow services offer mediation services to help resolve any problems that might arise.
Reminder: Use of Yahoo! Auctions is entirely at your own risk. Please review our Guidelines and Terms of Service for more information.
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