An escrow service is a licensed and regulated intermediary assisting the execution of a transaction by collecting and holding the buyer’s money until all previously agreed upon terms of sale are met.  Once a buyer accepts an item from the seller, payment to the seller is made by the escrow service.

The use of an escrow service is highly recommended for purchases valued at $500 or more.

Using an Escrow Service

In most cases, the use of an escrow service involves the following processes:

1. Buyer and seller agree on the use of a specific escrow service.

GoFastAuction strongly recommends the use of www.escrow.com

2. An account is created at the escrow service, and the terms of sale are detailed.  The following topics are typically included:

• Who pays escrow fees
• How much shipping costs are and who pays the fee
• Whether shipping fees are refundable
• Conditions of acceptance for the item
• Length of the inspection period

3. Payment of the agreed amount is made to the escrow service using a check, money order, credit card, cashier’s check or certified check.

4. The item is shipped using a carrier with a tracking service.

5. Upon receipt of the item, the buyer has a predetermined amount of time to inspect the merchandise and either accept or reject it for good cause.  The following scenarios are common among escrow service agreements:

• Accepting the item authorizes the escrow service to pay the seller.  Payment is typically made within five days.
• Rejecting the item requires the buyer to return the item to the seller and pay both return shipping and escrow fees regardless of any previous agreement about payment of escrow charges.  The buyer’s money deposited with the escrow service is returned less applicable fees.
• Failure to accept or reject within the inspection period automatically entitles the escrow service to pay to the seller.

Escrow Safety Concerns

• Know a seller’s policy about the use of an escrow service before bidding on an item.  Clarify any questions by emailing the seller before entering a bid.
• Know the fee schedule of any escrow service before agreeing upon their use.
• Buyers or sellers refusing to use www.escrow.com should be regarded with suspicion, and bidding on the item is not recommended.
• Never allow a browser to auto type the address of an online escrow service.  This could lead to a fraudulent website.
• Be cautious of emails from any escrow service, and never follow a link from an email to an escrow service website.
• If you agree to the use of an escrow service other than www.escrow.com, verify the company’s track record.
• Be particularly cautious about escrow services in foreign countries that are not on the GoFastAuction Recommended Escrow Service list.

GoFastAuction Recommended Escrow Services

www.escrow.com  - (U.S.)

EscrowAustralia  -  (Australia)

Escrow Europa  -  (Italy)

Triple Deal (France)