Hello, If you’re new to using Vesicash – Nigeria’s premier escrow service provider, to secure your transaction(s), You may need to familiarise yourself with some of the terminology that may come up over the course of your transaction.
Below is a list of some very important terms that you may come across during your Escrow transaction along with what they mean: some of these words have other meanings in other contexts, but below are what they stand for when it comes to an Escrow scenario.
Buyer and Seller
These terms are the most commonly used in Escrow, they both might also not be completely different from what they mean outside escrow. In Escrow, A Buyer is the recipient of goods or a service service that is offered by a counterparty in this case referred to as the Seller. On the other hand, a Seller is the person selling goods or offering a service to another party and requires the payment to be held in Vesicash Escrow pending the delivery or satisfactory completion of the service.
Service Level Agreements (SLAs)
What do you think can give you the guarantee that the counterparty in an Escrow transaction would be true to their words?- SLAs!!!
Service Level Agreements are the requisite terms of the transaction. They are the binding terms that both parties must agree to before they can both proceed with the transaction. Examples of SLAs include due date, transaction amount and the party paying for the Escrow charges, etc.
This term simply refers to the clients’ monies account that is held securely by Vesicash. This transactional account is statutorily protected so that the funds are safeguarded for Customers while both parties fulfill their obligations as dictated in the SLAs of the contract.
Inspection period is the time/window that allows for a Buyer to verify the quality and veracity of a Delivery that has been fulfilled by a Seller. This period is initiated once the Seller marks an order as complete. The transacting Parties are allowed to specify how long this window should be, depending on their preference and/or the type of transaction. A typical inspection period is 24 hours but can be reviewed by the transacting parties.
This is the deadline by which the Seller is expected to have indicated that an order is complete/delivered. The countdown towards the Due Date begins once a Transaction has been funded and the funds have been secured in escrow. When the Due Date is reached, the users can either agree to to extend the time allowed for the fulfilment or the order, or the paying party may choose to cancel the transaction.
This term refers to a window/timeframe that automatically begins when a Buyer fails to take any action during or after the Inspection Period. It is a ‘last chance’ for a Buyer to confirm the fulfillment and also the quality of an order that has been marked as complete/delivered by a Seller. Grace Period is opened only when a Buyer does not take any action during / after the Inspection Period.
Disbursement is the instruction given to transfer transaction Funds from the Buyer to the Seller to satisfy the payment of the relevant Transaction. This is after the satisfactory completion of the said Transaction.