Escrow

The African Commerce Bank provides a secure escrow service as part of the brokerage process, designed to protect both sellers and buyers in every transaction. Escrow acts as a neutral third-party hold, securing funds until both parties meet their contractual obligations. This service builds confidence and transparency, minimizing risks associated with payment delays, delivery issues, and disputes.

Through our escrow process, sellers can trust that funds are held securely until they deliver the agreed-upon commodities, and buyers have assurance that their payment is only released once they confirm receipt of the goods as per the terms. Below, you’ll find a simplified flowchart illustrating how escrow is managed on our platform.

What is Escrow?

Escrow is a financial arrangement where funds are held by a trusted third-party (our platform) on behalf of two transacting parties. Once both parties fulfill their obligations, the funds are released accordingly.

Escrow ensures:

• Security: The buyer's payment is protected until they confirm successful receipt of goods.
• Transparency: Both parties have visibility into the process and peace of mind knowing that funds are safeguarded.
• Conflict Resolution: Escrow helps to prevent disputes by ensuring that payment only proceeds when agreed conditions are met.

Visual Diagram

Step-by-Step Breakdown of the Escrow Process

1. Contract Agreement: A contract is agreed upon by both the seller and buyer, with terms specifying the use of an escrow service to ensure secure payments.
2. Escrow Account Setup: The platform sets up an escrow account to hold the funds. The buyer deposits the agreed amount into this account, where the funds remain secure.
3. Funds Held in Escrow: With the funds in escrow, the seller receives confirmation that payment has been secured, enabling them to proceed with the shipment.
4. Commodity Shipment: The seller ships the commodity, ensuring it meets the agreed-upon standards and is delivered as per the terms.
5. Delivery Confirmation by Vendor: Upon receiving the goods, the buyer confirms delivery through the platform, signaling that the seller has fulfilled their contractual obligations.
6. Platform Verifies Confirmation: The platform verifies the buyer's confirmation and conducts any necessary checks.
7. Release of Funds from Escrow: The funds are then released from escrow and transferred to the seller, completing the payment process.
8. Transaction Completed: With the funds successfully transferred, the transaction is marked as complete, providing a transparent record for both parties.

Conclusion

Our escrow service streamlines commodity transactions, reduces risks, and ensures secure payments. By using escrow, sellers and buyers can transact confidently, knowing that their interests are protected and their payments are secured until all conditions are met.