Platform FeaturesPayments
Escrow Protection
How OpenGiving's escrow system protects buyers and sellers in marketplace transactions.
Escrow Protection
Our escrow system keeps marketplace transactions safe for everyone involved. Funds are held securely until the transaction is complete.
What is Escrow?
Escrow is a financial arrangement where a third party (OpenGiving) holds payment until both parties fulfill their obligations.
sequenceDiagram
participant Buyer
participant OpenGiving
participant Seller
participant Campaign
Buyer->>OpenGiving: Pays for item
OpenGiving->>OpenGiving: Holds funds in escrow
Seller->>Buyer: Ships item
Buyer->>OpenGiving: Confirms receipt
OpenGiving->>Campaign: Releases fundsHow It Works
Step 1: Buyer Pays
When a buyer purchases an item:
- Payment is collected immediately
- Funds are held securely by OpenGiving
- Neither seller nor campaign has access yet
Step 2: Seller Ships
The seller:
- Receives notification of sale
- Ships the item
- Uploads tracking information
- Funds remain in escrow
Step 3: Buyer Confirms
When the item arrives:
- Buyer inspects the item
- If satisfied, confirms receipt
- Escrow is released
Step 4: Funds Released
After confirmation:
- Funds go to the designated campaign
- Seller is notified
- Transaction complete
Protection Timeline
| Day | Status |
|---|---|
| 0 | Purchase made, funds in escrow |
| 1-7 | Seller ships item |
| 7-14 | Item in transit |
| 14-21 | Buyer receives and confirms |
| 21+ | Auto-release if no disputes |
If a buyer doesn't confirm within 7 days of delivery, funds are automatically released.
Dispute Resolution
When to Open a Dispute
Open a dispute if:
- Item never arrives
- Item is significantly different from description
- Item is damaged (not from shipping)
- Wrong item received
How Disputes Work
- Buyer opens dispute through the order
- Seller has 3 days to respond
- OpenGiving reviews the case
- Decision made within 5 business days
- Funds released appropriately
Possible Outcomes
- Full refund - Buyer gets money back
- Partial refund - Compromise amount
- Funds released - Seller/campaign vindicated
- Return required - Buyer returns item for refund
What's Covered
Protected
- Non-delivery
- Significantly not as described
- Counterfeit items
- Missing parts/pieces
Not Protected
- Buyer's remorse
- Minor variations from photos
- Items damaged in shipping (carrier claim)
- Transactions completed outside platform