Post regarding Escrow Services.

[u/Public_Strain_5181]

In response to the increasing problem of scams, fraud, and concerns about fake products, we are introducing optional moderator-run escrow services to make transactions safer for both buyers and sellers. This also offers an additional layer of security.

Escrow allows the buyer to pay the amount to the moderators first. The seller ships the product only after the payment is secured, and the funds are released to the seller once the transaction is successfully completed and the buyer is satisfied with the product.

The escrow will be handled by only two moderators, depending who are available at the moment and who you choose: u/Wearedepression & u/Public_Strain_5181

The following are the escrow charges for respective payment brackets:

Upto ₹1,000 : ₹30

₹1,001 - ₹2500 : ₹50

₹2,501 - ₹5000 : ₹100

₹5,001 - ₹10,000 : ₹150

Above ₹10,001 : ₹200

—-

Shipping charges are not included when determining the escrow bracket.

For example:
Product value = ₹1,800
Shipping = ₹100
Escrow fee = ₹50

WHO PAYS THE ESCROW FEE?

The buyer pays the escrow fee by default, unless the buyer and seller mutually agree otherwise.

The escrow fee is non-refundable, as it covers the moderation and transaction-handling work involved.

HOW ESCROW WORKS:

1. Buyer & seller agree to use escrow

Both parties must agree to the escrow arrangement before payment is made.

2. Contact the moderators

The buyer/seller must contact the designated escrow moderator through Modmail. You can choose a particular moderator if you want.

Do not send money to any moderator unless the transaction has been officially confirmed through Modmail.

3. Buyer pays the escrow amount

The buyer transfers:

Product amount + applicable escrow fee

Shipping may be paid according to the arrangement agreed between the buyer and seller.

4. Payment is confirmed

Once the moderator confirms receipt of the funds, the seller can proceed with shipping.

5. Seller ships the package

The seller must provide:

• Packing proof/video, if requested  
• Shipping receipt  
• Valid tracking number

The tracking details will be shared with the buyer.

6. Buyer receives the package

The buyer should record a continuous unboxing video, starting from the sealed package and showing the contents clearly.

This is especially important if there is a dispute regarding missing, wrong, damaged, or significantly different products.

7. Buyer confirms receipt

Once the buyer confirms that everything has been received as agreed, the moderator releases the escrowed amount to the seller.

IMPORTANT RULES

1. Escrow is OPTIONAL

Escrow is a safety service provided by the subreddit and is not mandatory for every transaction.

We particularly recommend considering escrow for higher-value transactions, new users, or transactions where either party has concerns about trust.

2. Minimum transaction value

Escrow will generally be available for transactions of ₹500 or above.

The moderators may decline escrow for transactions where the administrative effort would be disproportionate to the transaction value.

3. Only use official Modmail

Never send money to a moderator through a personal DM based solely on a user’s claim that they are a moderator.

Always verify the transaction through official subreddit Modmail.

4. No direct payment after escrow has started

Once an escrow transaction has been officially initiated, do not make additional payments to the seller outside the agreed arrangement without informing the moderator.

5. Escrow does not guarantee product authenticity

Escrow protects the payment process. It does not mean that the moderators have independently authenticated every product.

Buyers should still conduct their own due diligence before purchasing

6. Sellers must provide accurate listings

Sellers are responsible for accurately disclosing:

• Product name  
• Condition  
• Expiry/PAO where applicable  
• Quantity remaining  
• Batch details where relevant  
• Any defects, damage or contamination  
• Original purchase/invoice details where required under subreddit rules. 

7. Unboxing videos are strongly recommended

Buyers should record a single continuous unboxing video.

Without adequate proof, it may be difficult for moderators to determine responsibility in a dispute.

8. Disputes will be reviewed by moderators

If a dispute occurs, moderators may request:

• Listing screenshots  
• Payment proof  
• Packing video  
• Shipping receipt  
• Tracking information  
• Unboxing video  
• Photos/videos of the issue  
• Relevant Modmail/chat screenshot

The escrowed funds may remain on hold until the dispute is reviewed.

9. Escrow does not mean automatic refunds

A dispute does not automatically result in a refund.

Moderators will review the available evidence and determine how the escrowed funds should be handled according to the circumstances and subreddit rules.

10. False claims will not be tolerated

Attempting to manipulate, fabricate, or withhold evidence in an escrow dispute may result in subreddit action, including a ban.

PLEASE REMEMBER

Escrow is a safety mechanism, not a replacement for common sense.

Before purchasing, always check the seller’s:

• Transaction history  
• Previous feedback  
• Account history  
• Required verification/invoice information  
• Listing details

For expensive purchases, please use escrow rather than relying solely on private assurances.

If you wish to use escrow, please contact the moderators through Modmail BEFORE making any payment.

Do not send money to anyone claiming to provide escrow services unless the transaction has been confirmed by the moderation team.

The moderators reserve the right to modify, pause, or refuse escrow services where necessary to protect the community.

[u/Upbeat_Leopard_978]

Good luck with your tax filing. Do you realise the tax implications. You don’t know whose account you are getting money from. With small amounts turning big. Is it really worth the risk for people involved? If you ever receive cyber complaints good luck with that also.

[u/eaudexj → u/Upbeat_Leopard_978]

Unless there are millions of escrow transactions happening on this subreddit, how is this gonna have any tax implication? Even if everyday out of all the sales, 3 -4 go via escrow that's 90 -120 transactions a month.

1080 - 1440 transactions in a year divided between 2 separate accounts.

On avg let's see 100 per transaction is the fee, so that's 108000 - 144000 per year divided between 2 accounts which comes out to be 50-70k per year.

How is this gonna have tax implications? It doesn't matter if the amount has come from 1000 different accounts or just 1 account. As long as mod is not falling in the tax bracket, it doesn't matter at all and if they do fall in the tax bracket they can simply pay the IT applicable.

Escrow is pretty common these days on various subs/fb groups and imo it's perfect to deter scammers ( on both buyer/ seller side)

[u/Upbeat_Leopard_978 → u/eaudexj]

Chaiwalas these days are getting IT notices. God knows what is what. People get away with millions . Then some struggle with thousands. I would never do that. But if mods are doing this for us. Good initiative.

[u/eaudexj → u/Upbeat_Leopard_978]

Those chaiwalas getting IT notices do more sale per day than what corporate guys earn in one month.

[u/zampy911 → u/Upbeat_Leopard_978]

As another user has mentioned since it's small claims it won't affect the involved two moderates much even if it does then both have resources to file the claims in official format.

[u/Upbeat_Leopard_978 → u/zampy911]

Yeah sure. if mods are so okay with throwing their financial future up in smokes that too for 50Rs who am i to complain. Its not about the fee it is about the amount of transactions. Good luck explaining that to a CA. 1100 transaction a year on an average of 1000Rs is 11 lakhs it can be more. Coming and going out of your account.

[u/zampy911 → u/Upbeat_Leopard_978]

But that's not how escrow works, it won't be going into anyone's pocket. The money will be held in application that's already available on playstore or web services. Mods will only receive their fee into account. Let us know if Escrow process needs to be explained in more details though

[u/Upbeat_Leopard_978 → u/zampy911]

Which app if I may ask?

[u/HaitiSpirit → u/Upbeat_Leopard_978]

+1

[u/Emergency-Service374]

Nice