How our Escrow service works
It can be hard to strike a deal when you don’t know who you can trust. Whether you’re buying something from a classified ad, or hiring new contractors to do work on your house, there is always the worry that the other person might try to cheat you, or take your money without keeping their side of the deal.
Standard Bank’s online Escrow service protects both the buyer and the seller by holding the payment and only releasing it when the deal is complete.
How to use it
- Begin by registering on the Escrow service website.
- Contact the other party and let them know that you would like to use Escrow.
- If they agree, then sign back in and create a new transaction.
- You will need to specify the terms of the transaction, costs, deadlines, etc. If you are the buyer, you will also have the option of including documentation, such as pictures and agreements.
- Once you’ve created the transaction on our system, we will send an invitation to the other person, and letting them know all the details which you specified.
- If the other person disagrees with any of the details or terms that you have specified, then you can begin negotiating until you reach an agreement. Once everybody is happy with the transaction details, they can accept the transaction terms and the agreement will then be in place.
- The buyer then deposits the funds into the Escrow service, via EFT. We will notify the seller when the money has been secured.
- The seller then completes their side of the agreement, whether it is delivering the goods, or completing the work.
- Once the buyer is satisfied that the seller has kept their end of the deal, we will release the funds to the seller. But if they are not happy, the funds will be frozen while the buyer and the seller try to resolve the dispute. If the dispute is not settled within ten days, we will refer the matter to either the Small Claims Court, or to arbitration.
Who can use it?
Any private person can use the service as a buyer. To use it as a seller, you must be a Standard Bank customer. This service is not currently available for businesses.
What does it cost?
Registration is free for both parties. A transaction fee is calculated as a percentage of the trade amount. You have the option of charging this fee to the buyer or the seller or splitting it evenly between both parties.