Silk Road forums

Discussion => Newbie discussion => Topic started by: silverdye on April 01, 2013, 12:31 am

Title: what is escrow?
Post by: silverdye on April 01, 2013, 12:31 am
so i see vendors on certain sites talk about things like accepting escrow? and that its some sort of reputable way to buy things. can someone explain this to me?
Title: Re: what is escrow?
Post by: JackBlue on April 01, 2013, 01:10 am
Escrow is what makes SR a relatively safe place (relative to most places) to purchase drugs.  With escrow, when you check out with your SR shopping cart, your bitcoins are taken out of your account but they don't go immediately to the vendor.  Instead they are moved to an escrow account at SR instead.  Your money is held in that account until you receive and finalize your order.  When you finalize you're order, you are telling SR that you received your order and it's OK to pay the vendor.  SR then transfers the bitcoins to the vendors account.

If you ever have a problem with an order that doesn't arrive or isn't what you ordered, the escrow is what gives you leverage with the vendor to come to a resolution over your dispute.  Instead of finalizing, you would instead click the resolution button on the order page where the SR support staff assist the buyer and seller in coming to a solution.  If you don't either finalize or take an order to the resolution center, the order will autofinalize 17 days from then the order changed from processing to in transit.  If you have a problem, you have to take action before the 17 days is up or the vendor will be paid automatically then.

The opposite of escrow is finalizing early that you never what to do.  When you finalize early, you are allowing the vendor to get your money before you receive your order in the mail.  That's not a safe way to buy drugs.
Title: Re: what is escrow?
Post by: AllDayLong on April 01, 2013, 01:20 am
Also keep in mind that in almost all cases where you don't finalize but get a resolution through SR if you don't get your order, you will only be getting some of your money back, but something is better than nothing. Check the vendors policies before ordering.
Title: Re: what is escrow?
Post by: CRWHITLOCK on April 02, 2013, 10:08 pm
When you place an order your money goes into a "third party" account, that is managed by the operators of SR. Once you receive your package you "confirm" your payment. This transfers the money out of the third party account into the sellers account. It's designed to protect buyers from getting ripped off. Technically you don't pay until you receive your order. The money is held by SR until you receive what you order.