Bitify Escrow Service and Buyer Protection
What is escrow and why is it provided on Bitify.com?
Bitify offers an automated Bitcoin and Litecoin escrow service to buyers purchasing items on the site. You can buy and sell knowing you are protected with our 30 days buyer protection!
Escrow is a place of trust where funds or objects (in this case Bitcoin or Litecoin) are kept with a third party for a period of time until the deal is considered complete between two parties.
Due to the nature of crypto, transactions sent over the Blockchain are irreversible. That means that once you send Bitcoin from one address to another there’s no way to force the receiving party to sending you the payment back.
Unlike traditional currency services such as credit cards, bank transfers, or PayPal, once the funds are sent, there is no way to charge back the transaction.
Irreversible transactions is one of the greatest features of Bitcoin. It offers online retailers and sellers peace of mind over traditional payment methods, but at the same time it increases the risk for buyers spending their coins. Buyers are forced to place their full trust in the seller and hope that nothing goes wrong with their purchase.
This is where Bitify’s automated escrow service comes in. When a buyer pays for an item and uses escrow, Bitify will hold onto the funds until the buyer receives their items and is happy to release escrow to the sellers. If the buyer does not receive their item or it is not satisfied with their purchase, they can submit a refund request. This process reduces the risk of Bitcoin loss and increases the trust between parties.
Bitify will hold funds in escrow for up to 30 days before releasing them to sellers, providing up to 30 days of protection to buyers using our escrow service.
How does it work?
Bitify holds the funds for up to 30 days from the day/time of the purchase. Once buyer are satisfied with their purchase, buyers must release escrow, at which point Bitify immediately sends the funds to the sellers. If the buyer does not release escrow within 30 days, the funds will be automatically released to the seller 30 days from the time of purchase.
In some exceptional circumstances Bitify may release funds to sellers before the buyer indicates to release escrow or before 30 days. Bitify may choose to do this where sellers have given sufficient proof of delivery, where buyers are not responsive to private messages or support requests, or where other exceptional circumstances prevail. In such scenario, buyers will be covered for the full 30 days escrow duration and will be able to receive a refund from Bitify directly after submitting a support request.
Trust in Bitify
Bitify (formerly CryptoThrift) has been operating since 2013. In that time more than 15,000 in Bitcoin and 16,000 in Litecoin have been processed through our escrow service, for items ranging from $1 to > $20,000. Bitify Pty Ltd is a registered Australian company, with offices in Sydney.
If the buyer does not receive or is not satisfied with the purchase, they can submit refund request to Bitify and ask for a refund for their Bitcoin/Litecoin. Sellers are then sent a notification of the request, and the following refund process occurs:
- Buyers are expected to give sellers a minimum of 72 hours to deliver the item before they ask for a refund.
- Sellers are given 72 hours to respond to a refund request, to either Agree to the refund or Dispute it.
- If the seller agrees to the refund, buyers are immediately refunded.
- If the seller disputes refund, our escrow team will intervene and arbitrate the dispute. We will ask both parties to provide further evidence to support their claims, before making a decision.
- If the seller does not respond and dispute the refund within 72 hours the funds will be automatically refunded to the buyer.
- Once evidence is received from both parties, Bitify will use this, along with other information such as account history, feedback, prior sales, private messages etc in order to make a decision on the refund request.
- By selling or buying good using our escrow service, you agree that Bitify reserves the right to use its own judgement an any and all means at their disposal in order to arbitrate a refund request and reach a final decision.
- Escrow refund decisions are final and can not be overturned.
Sellers may request for funds to be released from escrow before 30 days, provided certain conditions are met. Applications for escrow releases should be made through our Support portal:
- Sellers can request an escrow release two weeks after they have completed the sale and shipped the item.
- Bitify will take into account the seller’s previous history, feedback, the type and value of item sold, along with other information sources, before deciding whether to release escrow.
- Bitify reserves the right to refuse to release funds from escrow before 30 days, and leave the decision to the buyer.
- Bitify will not release funds from escrow to sellers if the buyer has already requested a refund.
Things to know for buyers
- Whilst it is optional, we recommend buyers use escrow for all purchases they make.
- Using escrow will incur a fee of $0.50 on items under $10, $1 on items between $10-$20, and then calculated at 2.5% (min $1.50) on items over $20, which is added to the final amount paid by the buyer.
- We recommend buyers not to release the funds before they receive their items.
- Bitify holds funds in escrow for up to 30 days before it is automatically released to sellers, unless a refund request/dispute is in progress.
- If you purchase gift cards or other similar credit, do not release escrow until you’ve used the cards/credit.
- Never agree to release escrow before the seller ships the item.
- Never agree to transact with sellers outside of Bitify.
- Do not agree to send Bitcoins directly to the seller’s Bitcoin address
- If you release escrow for an item, you void your buyer protection and no refund is possible. The seller will receives the funds as soon as you release them and we no longer have the funds on hand.
Things to know for sellers
- Be clear with item descriptions and aim to deliver within 72 hours.
- Use the private message system for all communication.
- Try to resolve issues with buyers before it leads to a refund request.
- Respond to refund request within 72 hours.
- Provide Bitify with as much evidence as possible when disputing a refund request.
Super sellers can have their escrow released after 10 days of the sale date for items valued at $99 or less.
Read more about Super Sellers and buyer protection with Super Seller in this article.