Escrow and Chargebacks

Discussion in 'Payment Processing' started by MechPoint, Nov 27, 2008.

  1. #1
    How safe is Escrow when it comes to chargebacks?

    How does escrow work? Is it just like PayPal?
     
    MechPoint, Nov 27, 2008 IP
  2. Nonny

    Nonny Notable Member

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    #2
    Escrow isn't anything like paypal. The idea with escrow is that a trusted third party - the escrow company - holds on to the money for a business deal until the transaction is completed between the buyer and the seller.

    http://en.wikipedia.org/wiki/Escrow

    As far as I know it's usually only used when large sums of money are involved, like buying a house or a $xxxxx web site, because the escrow company is paid a fee.
     
    Nonny, Nov 27, 2008 IP
  3. Cool1g

    Cool1g Peon

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    #3
    i assume you mean escrow.com - anytime there is a chargeback done the CC company makes an investigation. as escrow.com should be able to prove the website or domain transferred ownership, the buyer would not win the dispute.
     
    Cool1g, Nov 27, 2008 IP
  4. Bohra

    Bohra Prominent Member

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    #4
    Escrow.com Verified all payments first. Be it paypal or bank transfers. So basically its not possible for charge backs..Plus at the ends you are gettting paid by escrow and not the buyer
     
    Bohra, Nov 27, 2008 IP
  5. Cool1g

    Cool1g Peon

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    #5
    you can always do a chargeback the next month trying to scam your way out of paying for something via escrow.com....but you will have a hard time winning and most likely will have to pay the charge.
     
    Cool1g, Nov 27, 2008 IP
  6. Bohra

    Bohra Prominent Member

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    #6
    Yea offcourse but would someone risk it when they have all your details, Phone nos
     
    Bohra, Nov 27, 2008 IP
  7. mentos

    mentos Prominent Member

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    #7
    It work this way

    1. Buyer and Seller Agree to Terms
    Both parties agree to terms of the transaction, which includes a description of the merchandise, sale price, number of days for the Buyer's inspection, and any shipping information.

    2. Buyer Pays Escrow.com
    The Buyer submits an available payment option. Escrow.com verifies the payment. Processing time varies by payment method.

    3. Seller Ships Merchandise
    Upon payment verification, the Seller is authorized to ship merchandise and submit tracking information. Escrow.com verifies that the Buyer receives the shipment.

    4. Buyer Accepts the Merchandise
    The Buyer has a set number of days for an inspection and the option to accept or reject the merchandise.

    5. Escrow.com Pays the Seller
    Escrow.com pays the Seller by the method selected by the Seller. The transaction is complete.
     
    mentos, Nov 27, 2008 IP
  8. MechPoint

    MechPoint Banned

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    #8
    How do you prove to Escrow that you gave the buyer your website/domain information?
     
    MechPoint, Nov 28, 2008 IP
  9. brand0n

    brand0n Peon

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    #9
    I would like to know this aswell if anyone could answer it would be appreciated.
     
    brand0n, Nov 30, 2008 IP
  10. Cool1g

    Cool1g Peon

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    #10
    they check the whois to verify the buyer has possession of the domain name.

    technically you are not supposed to sell websites via escrow.com, just domain names. but plenty of people do so.
     
    Cool1g, Nov 30, 2008 IP
  11. brand0n

    brand0n Peon

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    #11
    so it would be best to sell the domain name through escrow and then when the seller has received payment to send the website files...to be safe.
     
    brand0n, Nov 30, 2008 IP
  12. Cool1g

    Cool1g Peon

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    #12
    personally i would not do that as a buyer as how do i know the seller will actually send me the website files? you would not be able to do anything if they did not send the website if you told escrow.com you got the domain.

    i'm just pointing out a worst case scenario here - i've never seen this problem and i've bought multiple websites via escrow.com. i don' think there is a 100% safe system to include selling/buying the website with the domain.
     
    Cool1g, Nov 30, 2008 IP