how does escrow work? | Bitcointalksearch.org

fildza

sr. member

Activity: 322

Merit: 250

Ask me anything if you have any problem

Quote from: Buster on August 28, 2013, 11:06:47 AM

There is always going to be a risk in selling remotely.
Why not sell in person face-to-face, with cash?

That better but the problem is we live in different region. So we cant see face to face. So, tp reduce the risk we use escrow. Escrow will hold the money and item. When both alredy transfer to escrow, escrow will transfer the item and money. If each one unable to do that, escrow will return back the money or item. So, it can help to avoid scammer do their scam

Buster

newbie

Activity: 56

Merit: 0

There is always going to be a risk in selling remotely.
Why not sell in person face-to-face, with cash?

gkm22d

newbie

Activity: 28

Merit: 0

I was actIly planning on trying to sell the stuff on bitmit.net.

So it would be the purchaser's responsibility to video the unboxing? I never thought of that.

Do claims of scams happen a lot with escrow or do people tend to fly pretty straight when escrow is involved?

It just seems like the purchaser has a bit of an advantage, nothing to lose from trying.

Does the ID verification help a lot?

JoelKatz

legendary

Activity: 1596

Merit: 1012

Democracy is vulnerable to a 51% attack.

Quote from: gkm22d on August 27, 2013, 08:44:11 PM

But what if I did send the computer, but the purchaser claims that it was just a box of books? How do I prove otherwise?

Proof is not needed. You just need to convince the escrow agency that it is more likely that you are telling the truth.

Quote

What if I send a broken computer, so the purchaser is tricked into signing for it, even after opening it?

Then the buyer complains that the computer was broken. The escrow company (or an arbiter or whatever) decides who is more credible.

Quote

What if I send a working computer, but purchaser drops it before funds are released, claims it was broken?

Same thing. The escrow company weighs the evidence and makes a decision or they employ a private arbitrator or whatever. Is it perfect? No. Does it provide some protection to both parties? Yes.

polrpaul

full member

Activity: 238

Merit: 100

Love the Bitcoin.

Trust in the escrow provider/service is key. There are rules to challenge shipment and product, for example video unboxing to prove that he box contained "books", or whatever.

Trust is all that there is left remaining in trades/sales/barter. May I suggest selling your goods on BitMit.net?

gkm22d

newbie

Activity: 28

Merit: 0

I know basically how escrow works, but I don't understand how it would really remove risk.

Say I want to sell an iMac computer. It is worth a fair amount and I am a relative newb on here so somebody is going to want escrow.

So say I sell the iMac for 10 bitcoins. The purchaser sends 10 bitcoins to the escrow service, I send the computer.

The two risks I can't figure out are:
What if instead of sending a computer, I send a box of books?

Buyer tells escrow agent and I don't get bitcoins.

But what if I did send the computer, but the purchaser claims that it was just a box of books? How do I prove otherwise?

What if I send a broken computer, so the purchaser is tricked into signing for it, even after opening it?

What if I send a working computer, but purchaser drops it before funds are released, claims it was broken?

Thanks.

Topic: how does escrow work? (Read 516 times)