How Does Binance P2P’s Escrow Service Work?
An escrow service is an arrangement in which a trusted third party handles the exchange of goods or assets between the transacting parties, ensuring safety and fair trading. Binance P2P is a peer-to-peer trading market where you can safely trade crypto in exchange for your local currency. Binance P2P’s escrow service safeguards every transaction, giving traders peace of mind.
Once the buyer places an order, the seller’s cryptocurrency will automatically be transferred from the seller’s wallet to the temporary deposit with Binance P2P’s escrow service. The cryptocurrencies will be held in the deposit guarantee until the transaction is successfully completed by both parties.
How does Binance P2P escrow service work?
Step 1: Place your order
Place an order to buy or sell cryptocurrency. The crypto will be held by Binance P2P temporarily until the operation is successfully completed.
Step 2: Start a conversation
Start a conversation with the seller or buyer. When you are trading with a counterpart that you do not know, we recommend that you use the chat to communicate with him/her. The chat history will be essential if there is a dispute with your counterpart and you make an appeal.
Step 3: Make the payment or release the cryptocurrencies
If you are a buyer, make the payment and notify the seller that you completed the payment. Click the "Confirm" button to notify the seller that you made the payment. If you are a seller, wait for the buyer's payment confirmation before releasing the crypto.
Step 4: The transaction was successful or the counterparty was not responding
In most cases, when everything goes smoothly, the buyer pays and the seller releases the crypto, but what happens if the counterpart was not fair? In other words, the buyer did not transfer the money or the seller did not release the crypto after the buyer made the payment. In these cases, you need to open an appeal, click on the "appeal" button. Now is when the escrow service comes into play and this is why the crypto was temporarily held.
How does Binance P2P escrow service help crypto sellers?
If the cryptocurrency buyer did not make the payment, Binance P2P's escrow service will return the cryptocurrency to the seller when the time for negotiation is over.
How does Binance P2P escrow service help buyers?
If the buyer made the payment but the seller did not release the cryptocurrency, the buyer can open an appeal to notify Binance's customer service that the counterparty did not release the crypto. If you are the buyer, please provide as much evidence as you can, receipt of payment, or screenshots of the conversation you had with the seller, and once our customer service confirms the payment is made, we can release the crypto to your account.
Why is the escrow service so important?
The escrow service protects Binance’s users from scammers. If a user tries to convince you to make a deal outside the Binance P2P platform, ignore the suggestion and open an appeal. If you make a deal outside the platform we cannot protect you.
Imagine that you want to buy cryptocurrency and you find an offer at a competitive price but the seller seems new to the platform, with zero completed orders. How can you be sure that the seller will transfer the cryptocurrency to your wallet?
The escrow service aims to solve this type of situation, by holding the cryptocurrency in a deposit. When there is no agreement and the counterpart opens an appeal, Binance’s customer service will analyze both the buyer's and the seller's stories. If the buyer wins the appeal, the cryptocurrency will be released to his wallet. However, if he loses the appeal, the cryptocurrency will go to the seller’s wallet.
While the cryptocurrency is in the deposit, users can trade safely without the risk of losing money. Whatever amount of money you trade, all amounts are important to Binance P2P.
Frequently Asked Questions about the Binance P2P escrow service
What happens if, after making the payment, the seller does not answer and does not release the cryptocurrency?
The buyer can file an appeal if the seller is not responding to chat messages or not releasing the cryptocurrency. Our customer support team will evaluate the situation, contact both the parties, and release the crypto to the fair party.
When an appeal is opened, how long will the funds be frozen?
Our customer service works 24/7. The funds will be unblocked as soon as the dispute between the parties is resolved and this depends on the complexity of each case and the verification of the evidence provided by both parties. The waiting time can range from a couple of hours to days.
What happens if the buyer marks the transaction as paid but the seller has not received the funds?
If the buyer marks the order as paid without actually making the payment, the seller can appeal and our customer support team will cancel the transaction after verifying with both the parties. Upon cancellation, the seller will receive the cryptocurrency back in the wallet.