Topic: How is escrow safe? (Read 3300 times)
Escrow acts as a intermediate between you and the seller. Once you are to buy bitcoins escrow system holds the amount of you as well the seller. If both were received without much issues it will just interchange money for bitcoin with a very minimal charge. If one has transferred and the other hasn't it will just return it back. So this way you can have very secure transactions without fear of fraud activities.
Hello. I keep reading that members should use escrow when using paypal. What stops buyer from a chargeback against the escrow and then escrow charge back against seller? I am looking to sell via paypal but do not want to risk chargeback. Virowox seems expensive to use although it is safe.
Even if you use an escrow for a Paypal deal, transaction can go sour since Paypal charge back can be filed up to 180 days from date of transaction if i'm not mistaken, unless escrows will release the item purchased using Paypal after the 180 day timeframe
I think you're not mistaken. I barely understand how PayPal can be used as I see everywhere that you can cancel your transfer in the 180 days after. What's the point of a transfer system if you can reverse it?
Maybe I miss some elements though
I won't even escrow sales that involve paypal. If you accept paypal it is only a matter of time before you get burned, escrow or not.
You could wait the 180 days it takes for charge backs to expire. I don't think the average bitcoiner's going to want to wait half a year for their cash though.
Unfortunately that is not sufficient. Even though it is paypals time this system can still be tricked by paying something with paypal and paypal charging a credit card.
The user then can do a chargeback with the credit card after 10 months or so, in the US, i believe, even longer.
So even that waiting time would not be enough.
I have done trades in localbitcoins involving paypal and BTC, with no problem at all. But I have been charged back unfairly with paypal, with no possibility to defend myself (it was advice given what I was paid for). Paypal is indeed risky, and measures to alleviate this are alwasy ok.
I offer escrow services, but will not escrow paypal transactions. See my thread in the services section.
I won't even escrow sales that involve paypal. If you accept paypal it is only a matter of time before you get burned, escrow or not.
You could wait the 180 days it takes for charge backs to expire. I don't think the average bitcoiner's going to want to wait half a year for their cash though.
I suggest even you have escrow in middle don't do bitcoin to paypal like transaction.
Always hard make a deal using paypal to buy bitcoin , many times has explained here , buying bitcoin use paypal is not recommended.
And about escrow its depends on who is the escrow are you use .
Moreover its against papal's policies to buy bitcoins or any other cryptocurrencies using paypal.There are recent cases of accounts suspensions .The escrow is just there to provide assistance in the trade and make sure it happens fairly.Though paypal payments are reversible ,I doubt escrow can do anything in that case. And about escrow its depends on who is the escrow are you use .
I won't even escrow sales that involve paypal. If you accept paypal it is only a matter of time before you get burned, escrow or not.
You could wait the 180 days it takes for charge backs to expire. I don't think the average bitcoiner's going to want to wait half a year for their cash though.
Escrow will only provide a very limited amount of protection when involving a PayPal trade.
Escrow can do the following when being used in a PayPal trade:
Point two is important because a non-zero number of PayPal transactions that will get reversed are reversed very shortly after the transaction is sent. Although it is certainly still possible, I would speculate that many PayPal transactions get reversed after 150+ days of the transaction.
The person accepting PayPal funds from the escrowed trade should acknowledge the potential of a reversible after funds being held in escrow are reversed. The release of BTC from escrow should also not be immediate after the PayPal funds are received and the amount of the delay should be agreed upon prior to the initiation of the trade.
Escrow can do the following when being used in a PayPal trade:
- Guarantee that you receive a PayPal payment in the amount of what the terms of the trade dictate
- Protect against chargebacks/reversals up until the time funds being held in escrow are released -- if the payment is reversed prior to funds being released then the escrow can release the BTC back to the bitcoin seller provided the seller can provide proof that the payment was in fact reversed
- Prevent a scammer from claiming that the only option is for the person selling PayPal funds to 'send first' to the scammer because "PayPal is reversible"
Point two is important because a non-zero number of PayPal transactions that will get reversed are reversed very shortly after the transaction is sent. Although it is certainly still possible, I would speculate that many PayPal transactions get reversed after 150+ days of the transaction.
The person accepting PayPal funds from the escrowed trade should acknowledge the potential of a reversible after funds being held in escrow are reversed. The release of BTC from escrow should also not be immediate after the PayPal funds are received and the amount of the delay should be agreed upon prior to the initiation of the trade.
I would add the point that the escrow can informe the buyer about the risks. For example that chargebacks are possible at all, possible after months through credit card chargeback, that send as present is no protection and such.
If the buyer still wants to proceed then only when he was informed about the risks involved. It's up to him then to accept the risks.
sebastianju is widely used for an escrow service I recommend him this time
https://bitcointalksearch.org/topic/ann-sebastianju-legendary-escrow-service-escrowed-over-8150-btc-1102721
Yes i will recommend this legendary member for escrow.https://bitcointalksearch.org/topic/ann-sebastianju-legendary-escrow-service-escrowed-over-8150-btc-1102721
Everything i have read about him is more then positive! And his trust is very convincing!
Thanks for the trust.
Let me know when you need an escrow, check out my service thread in my forum users profile website link.
PayPal os only safe when you are dealing with payments from and to recognized institutions or traders. Buying or selling bitcoin via PayPal is very risky. I am a victim after losing $500 and my account PayPal account frozen.
Bitcoin is virtual goods, so you cannot buy it with paypal. I heard it somebody said that in the forum.
There is a trusted user named BayAreaCoins in the currency exchange section. I bought paypal money from him some times and i consider it relatively safe. One shouldn't buy from an untrusted user though. As long as no dispute comes up inside of paypal then it would not be a problem that a digital good was traded.
Escrow will only provide a very limited amount of protection when involving a PayPal trade.
Escrow can do the following when being used in a PayPal trade:
Point two is important because a non-zero number of PayPal transactions that will get reversed are reversed very shortly after the transaction is sent. Although it is certainly still possible, I would speculate that many PayPal transactions get reversed after 150+ days of the transaction.
The person accepting PayPal funds from the escrowed trade should acknowledge the potential of a reversible after funds being held in escrow are reversed. The release of BTC from escrow should also not be immediate after the PayPal funds are received and the amount of the delay should be agreed upon prior to the initiation of the trade.
Escrow can do the following when being used in a PayPal trade:
- Guarantee that you receive a PayPal payment in the amount of what the terms of the trade dictate
- Protect against chargebacks/reversals up until the time funds being held in escrow are released -- if the payment is reversed prior to funds being released then the escrow can release the BTC back to the bitcoin seller provided the seller can provide proof that the payment was in fact reversed
- Prevent a scammer from claiming that the only option is for the person selling PayPal funds to 'send first' to the scammer because "PayPal is reversible"
Point two is important because a non-zero number of PayPal transactions that will get reversed are reversed very shortly after the transaction is sent. Although it is certainly still possible, I would speculate that many PayPal transactions get reversed after 150+ days of the transaction.
The person accepting PayPal funds from the escrowed trade should acknowledge the potential of a reversible after funds being held in escrow are reversed. The release of BTC from escrow should also not be immediate after the PayPal funds are received and the amount of the delay should be agreed upon prior to the initiation of the trade.
Hello. I keep reading that members should use escrow when using paypal. What stops buyer from a chargeback against the escrow and then escrow charge back against seller? I am looking to sell via paypal but do not want to risk chargeback. Virowox seems expensive to use although it is safe.
I won't even escrow sales that involve paypal. If you accept paypal it is only a matter of time before you get burned, escrow or not.
Escrow is only safe with trusted members here, and even then you still have to make the leap of faith that they won't scam you (like Master-P did and Quickseller/Panthers52). Green trust is a must around these parts, remember that. It's a pain in the ass way to get deals done, but with bitcoin it's really the only good way.
I have to admit that I was pretty much desinformed about escrows. Good thread thanks. Now I'm well informed about what it is and how it works.
sebastianju is widely used for an escrow service I recommend him this time
https://bitcointalksearch.org/topic/ann-sebastianju-legendary-escrow-service-escrowed-over-8150-btc-1102721
Yes i will recommend this legendary member for escrow.https://bitcointalksearch.org/topic/ann-sebastianju-legendary-escrow-service-escrowed-over-8150-btc-1102721
Everything i have read about him is more then positive! And his trust is very convincing!
PayPal os only safe when you are dealing with payments from and to recognized institutions or traders. Buying or selling bitcoin via PayPal is very risky. I am a victim after losing $500 and my account PayPal account frozen.
Bitcoin is virtual goods, so you cannot buy it with paypal. I heard it somebody said that in the forum.
I really don't understand how PayPal can continue to offer its money borrowing service ( they borrow the money from their customers). This is especially true when you look at their past misdemeanours. Reports of the $600 million compensation that had to pay some years ago seems to have disappeared from the net. It was because of this that they moved their operation out of the US.
PayPal os only safe when you are dealing with payments from and to recognized institutions or traders. Buying or selling bitcoin via PayPal is very risky. I am a victim after losing $500 and my account PayPal account frozen.
Escrow is not absolutely safe. It depends on the integrity of escrow owner. Some escrow operator is not honest.
Correct, when dealing with a user and a escrow party it's best to use a high rated escrow company, or ask a mod as ascrow.
I know mitchell is doing escrows too. I don't think he would ever do a master-P
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