This Escrow Payment Policy governs the use of escrow services provided by us. It is designed to create a fair, transparent, secure, and efficient neutral third-party holding mechanism for high-value or high-trust transactions. Our goal is to protect both buyers and sellers equally, minimize fraud, reduce chargeback risk, and ensure funds move only when contractual conditions are demonstrably met.
By using our escrow service, all parties (Buyer, Seller, and any authorized agents) agree to be bound by our general Terms of Service, Privacy Policy, and any transaction-specific agreement. This Policy is not legal advice; parties should consult independent counsel where necessary.
1. Definitions
Escrow Account: A segregated, non-interest-bearing custodial account maintained by us solely to hold transaction funds until release conditions are satisfied.
A: The party depositing funds into escrow.
B: The party entitled to receive funds upon fulfillment of agreed conditions.
Transaction Agreement: The binding contract (purchase order, service agreement, or milestone schedule) uploaded or agreed upon in our platform that specifies deliverables, timelines, inspection periods, and release triggers.
Release Conditions: Objective, verifiable events (e.g., delivery confirmation, milestone approval, third-party inspection certificate) that must be met before funds are disbursed.
Dispute: A formal written claim submitted through our platform alleging material breach of the Transaction Agreement.
KYC/AML: Know-Your-Customer and Anti-Money-Laundering verification required before any funds movement.
2. Scope and Applicability
This Policy applies to all transactions routed through our escrow service, including but not limited to:
Online goods purchases (physical or digital).
Freelance, consulting, or service contracts.
Real-estate deposits, vehicle purchases, or high-value private sales.
Milestone-based project payments.
International cross-border transactions (subject to additional currency conversion and regulatory compliance).
It does not apply to direct peer-to-peer payments outside our platform or to transactions prohibited by law. We reserve the right to refuse escrow for any transaction we deem high-risk or non-compliant.
3. Roles and Responsibilities
Escrow Provider:
Acts as a neutral stakeholder only.
Holds funds securely and disburses strictly per this Policy and the Transaction Agreement.
Provides 24/7 secure portal access for status tracking.
Maintains segregated accounts and undergoes regular third-party audits.
Does not mediate commercial disputes beyond procedural facilitation.
Buyer:
Funds the escrow fully and in cleared funds before the Seller begins performance.
Provides accurate delivery/inspection instructions.
Conducts good-faith inspection and approves or disputes within the Inspection Period.
Bears responsibility for any taxes, duties, or import fees unless otherwise agreed.
Seller:
Delivers goods/services exactly as specified in the Transaction Agreement.
Provides proof of delivery or completion (tracking numbers, signed receipts, work logs, certificates).
Cooperates promptly with inspection or dispute requests.
Authorizes release or accepts cancellation/refund where required.
All parties must maintain accurate contact information and respond to platform notifications within 48 hours (or shorter if specified in the Transaction Agreement).
4. Escrow Initiation and Transaction Agreement
Both parties must register verified accounts and complete KYC/AML checks.
Buyer or Seller initiates an escrow request via the platform dashboard.
Parties negotiate and digitally sign a Transaction Agreement containing:
Detailed description of goods/services.
Total escrow amount (including any taxes/fees).
Payment schedule (single release or multiple milestones).
Inspection Period duration.
Delivery method and proof requirements.
Any special conditions (e.g., third-party inspection, warranty).
Once both parties accept and funds are received, the escrow becomes “Active.”
5. Funding the Escrow
Funds must be deposited in one of our approved methods: bank transfer, wire, ACH/SEPA, approved card payments, or supported cryptocurrency (with volatility buffer where applicable).
Funds are accepted only in cleared form; partial funding is not permitted unless explicitly structured as milestones.
Currency conversion (if needed) occurs at the prevailing rate plus our transparent FX fee at the time of deposit.
We do not accept cash, third-party checks, or untraceable instruments.
Once deposited, funds cannot be withdrawn by the Buyer except through cancellation/refund per Section 9.
6. Performance and Verification Period
Seller must commence performance only after escrow is fully funded and Active.
Upon claimed completion, uploads verifiable proof (photos, videos, signed delivery notes, system logs, or independent inspector reports).
Buyer is notified instantly and the Inspection Period begins.
During Inspection, Buyer may:
(a) Approve release (full or partial for milestones).
(b) Request reasonable clarifications or minor adjustments (without extending the period unless mutually agreed).
(c) Initiate a formal Dispute.
If Buyer takes no action by the end of the Inspection Period, funds are automatically released to the Seller (subject to any hold for disputes or regulatory flags).
7. Release of Funds
Funds are released only when:
Buyer explicitly approves, OR
Inspection Period expires without Dispute, OR
Dispute is resolved in Seller’s favor, OR
Mutual written cancellation with refund instructions is executed.
Disbursement occurs within 2 business days after release conditions are met, minus applicable fees. Partial releases are allowed only for pre-agreed milestone structures.
8. Cancellation and Refunds
Before Seller begins performance: Full refund to Buyer (minus any non-refundable processing or KYC fees) upon mutual agreement or Buyer’s unilateral request within 7 days of funding.
After performance has begun: Cancellation requires mutual consent or a valid Dispute resolution in Buyer’s favor.
In case of force majeure or platform-detected fraud, we may freeze and refund/return funds after regulatory review.
Refunds are issued to the original funding source within 5–10 business days. Currency fluctuations or bank fees are the responsibility of the receiving party.
9. Dispute Resolution
Either party may file a Dispute within the Inspection Period or within 14 days of any release trigger.
The filing party must provide evidence and proposed resolution.
The other party has 5 business days to respond.
We facilitate mediation using our internal team or designated neutral arbitrator for 14 days.
If unresolved, parties may:
Agree to binding arbitration under the rules of [e.g., International Chamber of Commerce.
Pursue litigation in the courts designated.
During any Dispute, funds remain frozen in escrow. We may charge a reasonable Dispute Handling Fee (capped at 2% of escrow value) split equally unless one party is found in material breach.
We reserve the right to involve law enforcement or regulators if fraud or illegal activity is suspected.
10. Fees and Charges
All fees are disclosed upfront and transparently:
Escrow Service Fee: 1.5%–3.5% of transaction value (tiered by volume; lower for repeat users).
Milestone Fee: 0.5% per additional milestone.
FX Conversion: 0.75%–1.5%.
Dispute Handling Fee: Up to 2% (split).
Wire/Refund Processing: Actual bank or network fee passed through.
Late Response Fee: $10 per day after 48-hour grace period (optional, waived for good cause).
Fees are non-refundable except where a transaction is cancelled before any performance and we expressly agree. No hidden charges.
11. Security and Protection Measures.
We employ bank-level encryption, multi-factor authentication, and continuous monitoring.
All transactions are logged immutably.
We maintain professional liability insurance and undergo annual audits.
Buyer and Seller protection: Funds move only on verifiable conditions; neither party can unilaterally access the other’s funds.
12. Prohibited Activities
Users must not use escrow for:
Illegal goods/services, money laundering, or sanctions evasion.
Speculative investments or high-risk financial instruments.
Transactions involving counterfeit goods or intellectual-property infringement.
Any activity that violates applicable export/import controls or consumer-protection laws.
Violation results in immediate freeze, forfeiture of fees, account termination, and potential reporting to authorities.
13. Limitation of Liability
We act solely as a limited custodian. We are not liable for:
Disputes over quality, quantity, or performance of goods/services.
Losses due to delays by banks, carriers, or third-party inspectors.
Indirect, consequential, or punitive damages.
Any loss exceeding the escrow amount.
Our total liability shall never exceed the fees paid for the specific transaction.
14. Termination and Account Closure
Either party may request transaction closure after full release or refund.
We may terminate escrow and return funds (less fees) if fraud is suspected or KYC fails.
Dormant escrows may be closed with 5 days’ notice, funds returned to original source.
15. Amendments
We may update this Policy with 30 days’ advance notice posted on our platform. BmContinued use after notice constitutes acceptance. Material changes affecting existing escrows will be applied only with mutual consent where legally required.
16. Governing Law and Jurisdiction
This Policy is governed by the laws of State of Delaware, USA, without regard to conflict-of-laws principles.
Disputes shall be resolved exclusively in the courts of arbitration as elected.
17. Severability and Entire Agreement
If any provision is held invalid, the remainder remains in force. This Policy, together with other agreements, constitutes the entire understanding between the parties regarding escrow.
18. Contact and Support
For questions or support:
In-app chat (24/7)
We encourage all parties to communicate primarily through the secure platform portal to maintain an audit trail.
Acknowledgment
By initiating or participating in an escrow transaction, you confirm that you have read, understood, and agree to this entire Policy.
This Policy is intentionally detailed to set clear expectations, reduce ambiguity, and foster trust. It balances speed with protection, automation with human oversight, and commercial flexibility with regulatory compliance—making it one of the most sensible and robust escrow frameworks available.