What is a Milestone Transaction?
Milestones divide a transaction into multiple phases, each with a clearly defined parameter and a corresponding dollar amount. Milestone transactions can be used for a transfer of goods, services, or a combination of both.
Milestones are ideal in situations where a transaction has multiple deliverables or goods. It gives the Buyer and Seller an easy way to facilitate a secure schedule for multiple payments.
How To Fund A Milestone Payment On Escrow.com
The Buyer will be asked to make a full payment, equal to the full amount of the transaction. If a split payment is requested, then we will only accept this when a Buyer is paying via wire transfer.
However, the Buyer would need to contact our customer support department on the phone, by email to firstname.lastname@example.org, or our online chat service.
What Payment Methods Are Available to Fund a Milestone Payment?
You can only fund a milestone through Escrow.com once you have created a transaction and chosen your preferred payment method.
If your payment is under $5,000, then you can use PayPal, Credit, or Debit card. If your payment is for more than this amount, then you can only pay via wire transfer.
Click here to find out more about Escrow.com payment options.
Does the Buyer or Seller Pay Escrow’s Fees?
Escrow has made it easy for Buyers and Sellers to split the fees on a 50/50 basis, or have either party pay them in full. For a normal transaction, you can select 'Buyer', 'Seller', or '50% Buyer / 50% Seller'. The option to select who will pay the Escrow fee will depend on the type of transaction you are creating.
Please take a look at our information page about the different types and structures of fees.
In What Cases Would a Milestone be Refused by Escrow?
If the entire transaction amount, including the fees, is not received in full, this can delay the application of any funds, you may incur additional handling fees, and it may also result in the refusal of the funds altogether.
Are There Any Extra Charges to Sellers for Milestone Payments?
In the event a Seller is paying the fees in advance and Milestones are being used, the Seller’s portion of the escrow fee will be deducted from the initial disbursement of funds. The Seller will also be charged $10 or $20 if they have chosen a domestic or international wire disbursement, respectively. Sellers are not charged any disbursement fees for ACH disbursements.
How it Works
- The Buyer and Seller agree to terms. Both parties agree to the terms of the transaction. This should include:
- The number of Milestones
- A description of each Milestone
- The price for each Milestone
- The number of days for the Buyer's inspection
- Who pays the escrow fee, or if it will be split 50/50
- Shipping information
- The Buyer pays Escrow.com. The Buyer sends their payment, and Escrow.com will verify this. If your payment is under $5,000, then you can use PayPal, Credit, or Debit card. If your payment is for more than this amount, then you can only pay via wire transfer.
- The Seller delivers Milestone. Once Escrow.com has verified the payment, the Seller is authorized to deliver any or all of the Milestones. The Buyer's inspection period is started for each Milestone when the Buyer marks the Milestone as received, or Escrow.com confirms delivery of that Milestone.
- The Buyer accepts the Milestone. The Buyer has a set number of days for inspection of each Milestone, and the option to either accept or reject each Milestone.
- Escrow.com pays the Seller. After each Milestone is accepted, Escrow.com pays the Seller by the method selected by the Seller. Sellers will be charged $10 or $20 for each disbursement if they have chosen a domestic or international wire disbursement, respectively. Sellers are not charged any disbursement fees for ACH disbursements. The transaction is complete when all Milestones have been accepted by the Buyer.
What happens if there is a dispute with a Milestone?
Escrow.com helps each transaction take place quickly and securely. However, if there are any issues with a Milestone, and the goods or services are not up to the agreed-upon standards, Escrow has a dedicated team to help handle this process.
Whether it be goods damaged in transit or the items not being as described when they arrive, sometimes things go wrong. If there is a disagreement, you will be fully supported by your Escrow agent.
This ensures that both parties can negotiate and effectively resolve their dispute with ease. The dispute resolution service is a formal process, so both Buyer and Seller receive support from a neutral Escrow agent.
The Benefits of Using Escrow
Payment security is one of the biggest problems in the marketplaces of today. But with the Escrow service, the problem is solved. As an online Escrow service provider, Escrow.com gives added benefits to Sellers of goods and services. The system has been designed to keep the payment process as secure as it can be for all parties.
The Buyer pays Escrow.com, and the payment is only cleared if the Buyer is satisfied with the product or service. The amount is kept securely during an inspection period, and if there is a problem with the deal, both parties receive their money back.
Escrow.com offers many benefits to both parties in a transaction. It offers a straightforward process, an easy-to-use platform, and complete transparency throughout the sales process.
Both Buyers and Sellers can benefit from using the world’s most secure payment method, helping them to safely buy and sell goods and services online with complete peace of mind.