Using Escrow.com allows Buyers and Sellers of online goods the freedom to transact knowing that they are supported by a licensed and audited escrow service.
At times escrow transactions can have issues, and if there is a disagreement, all parties involved in the transaction will enter the Dispute Process.
What is a Dispute?
A dispute happens when the Buyer returns the merchandise to the Seller, and the Seller rejects the returned merchandise. If the Buyer returns the merchandise, and the Seller accepts the returned merchandise, this is not considered a dispute.
The dispute process begins on the day the Seller marks the returned merchandise as “Rejected” on their Escrow.com dashboard. The dispute process is broken into 2 separate 14-day periods: the Negotiation Period and the Arbitration Commencement Period.
Dispute Process Timeline
| Inspection Period | Dispute Process | ||
|---|---|---|---|
| Buyer Rejects the Merchandise | Seller Receives and Rejects the Returned Merchandise | Negotiation Period | Arbitration Commencement Period |
| During the Inspection Period, the Buyer has the option to “Accept” or “Reject” the merchandise. | Commences the beginning of the dispute process. | 14 day period where the Buyer and Seller can resolve the dispute without a 3rd party. | Second 14 day period where the Buyer and Seller are required to start dispute resolution with a third-party arbitrator. The arbitration process administered by arbitrators. |
The Escrow.com Dispute Process
- The Buyer Rejects the Merchandise and Returns the Merchandise to the Seller. If the Seller accepts the returned merchandise, then a refund is processed to the Buyer.
- The Seller Rejects the Returned Merchandise. The Seller rejects the returned merchandise, milestone or domain(s) on the Escrow.com site and all parties involved in the transaction must notify and email Escrow.com at support@escrow.com.
After Escrow.com is notified, we would advise the parties involved to enter the Negotiation Period.
- Negotiation Period. The Buyer and Seller have 14 calendar days to resolve their dispute without using a third party. Escrow.com will send reminder emails to both parties when there are 10-days, 7-days, 3-days, and 2-days, remaining in the negotiation period.
If the parties agree to a resolution, the Buyer and Seller will have to notify Escrow.com by sending an email to support@escrow.com with terms of their mutual agreement.
If a mutual agreeable is not reached, an “Arbitration Commencement Period Starting" email will be sent to both parties as soon as the 14-day Negotiation period ends.
- Arbitration Commencement Period. If the Buyer and Seller have not resolved the dispute within the 14 day Negotiation Period, the Buyer and Seller are provided a second 14 day period. Again, Escrow.com will send reminder emails to both parties when there are 10-days, 7-days, 3-days, and 2-days, remaining in the negotiation period.
During this process, the Buyer and Seller are required to start dispute resolution with a third-party arbitrator. The arbitration process administered by arbitrators from American Arbitration Association, JAMS Arbitration, or net-ARB.com.
The Seller or Buyer need to communicate which third-party arbitrator they wish to use, and both parties should sign up accordingly.
After both parties have registered with the third party arbitration, the third-party arbitrator emails Escrow.com regarding the dispute details.
- Escrow.com Notice. If Escrow.com has not received notice that binding arbitration has been initiated, Escrow.com may terminate or cancel the transaction and refund the funds to the Buyer, deducting the escrow fee.
To read more information about Disputes see General Escrow Instructions, section 7 and 10.
Third Party Arbitrators
It is up to the Buyer, Seller, or Broker to research and review the information available from the third party arbitrators before selecting which one to proceed with.
Approved Third Party Arbitrators
The arbitration process will be facilitated by arbitrators from:
- American Arbitration Association (AAA)
- net-ARB.com (net-ARB)
- Jams Arbitration (JAMS)
If the Buyer, Seller, or Broker decides to use a different arbitration provider, Escrow.com and all members of the transaction must agree and have it in writing.
Third Party Arbitrator Fees
Because Escrow.com is not a party to a dispute, the Buyer and Seller (and Broker when applicable) are responsible for the arbitration expenses and fees.
Escrow.com recommends that each party should estimate their costs and pay their estimated share before commencement of the arbitration.
To read more information about Third Party Arbitrator fees see General Escrow Instructions Section 10.
| Approved Third Party Arbitrators | Fees | Support & Contact |
|---|---|---|
| American Arbitration Association (AAA) | AAA Fees | AAA Customer Service: 800-778-7879 AAA email: CustomerService@adr.org |
| net-ARB.com (net-ARB) | net-ARB Fees | net-ARB email: support@net-ARB.com |
| Jams Arbitration (JAMS) | Their Rules, Procedures, and Forms page contains PDF files for each type of arbitration. Click on the appropriate file to find the fees for your type of dispute. | JAMS contact page: https://www.jamsadr.com/contact |
Additional Support
To find out more about how you can be protected by dispute resolution during your escrow transaction, please email Escrow.com at support@escrow.com today or read more in our Terms of Use.