Escrow explained

Many of us only encounter escrow arrangements when we purchase or sell our house, and little explanation is given to what this agreement is and the security it offers both buyers and sellers.

What's more, companies like TradeSafe are now enabling consumers to use escrow seamlessly in everyday purchases. This helps you avoid scams and ensures you get exactly what you paid for.

What is escrow?

Escrow is a legal arrangement whereby a third-party holds the money or assets until the agreed conditions of sale have been met. Effectively this means that the buyer has the security that the seller will only receive their money after the product or service has been delivered and signed off; while the seller is assured that the purchase price is secured ahead of delivery and that they will receive the invoice amount into their bank account (no more unpaid invoices thank you very much). 

How does it work?

• After deciding on the products or services, you can enter into an agreement with the seller to use a third-party escrow service provider such as TradeSafe.

• Once you have finalised the details of your purchase, you will be directed to deposit the full invoice price into the third-party escrow account.

• Once the funds have been cleared, the escrow provider notifies the parties and issues the seller with a signed letter of comfort, confirming the full purchase price is now available.

• Knowing that the funds are being held safe by the escrow provider, the seller dispatches the items to the buyer. TradeSafe enables sellers to upload tracking information to the system so that all parties can monitor the progress of the delivery.

• Once you have received your items and confirmed that all is in order, the escrow provider is authorised to release the funds to the seller.

• The escrow provider then makes the payment to the seller. TradeSafe offers same-day payment using Standard Bank's host-to-host payment technology.

What happens if there is a dispute?

In the case where the buyer receives a delivery which has items missing or damaged, they can request an appropriate adjustment. If the seller agrees, the buyer will receive a partial refund and the remaining funds will be transferred to the seller.

If the goods or services delivered are materially different or misrepresented from what was agreed, then the buyer may initiate a dispute. At this point, the escrow provider will freeze the funds until a resolution is reached.

LookSee and escrow

LookSee is an environment where both customers and partners are valued. As part of our commitment to customer satisfaction, LookSee makes use of TradeSafe, a digital escrow and paymaster services provider.

TradeSafe escrow is built-in to  our system, which means you won't need to register on any additional sites or enter into seperate agreements. You will  check out using the payment gateway which is managed by TradeSafe, that sends payments directly into the escrow account. Payment can be done via credit and debit card, instant EFT, Snapscan and Ozow.

Why do we use TradeSafe?

TradeSafe safeguards your funds in a trust account until your product or service has been delivered. Only once you're happy with the goods or services received does TradeSafe release the funds to our partners. TradeSafe protects all parties in a deal, eliminating scams, transactional fraud and bad debt. Buyers get what they paid for and sellers are guaranteed payment.

What makes TradeSafe trustworthy?

TradeSafe is an authorised third-party payment provider with the Payment Association of South Africa. The company employs three pillars to ensure the safety, security, and validity of the escrow account.

• The escrow funds are held in the name of TradeSafe, in a secure Standard Bank account. Standard Bank has management oversight of the escrow account and is involved in the approval process for payment instructions as initiated by TradeSafe.

• The escrow account is also regularly audited by one of the big-four firms and the escrow funds are insured by iTOO  and underwritten by Hollard.