Instant Escrow Auto-Arbitration System
How Disputes Work - For Buyers and Sellers
Overview
Our auto-arbitration system empowers buyers and sellers to resolve disputes directly. Once funds are in dispute, they're frozen until both parties agree on a refund amount. The system automatically executes the agreed resolution without requiring admin intervention.
How the Auto-Arbitration System Works
Key Innovation: When both parties enter the same refund amount, the dispute automatically resolves and distributes funds accordingly. No waiting for admin decisions.
Step-by-Step Process
- Buyer raises dispute - Enters a comment explaining the issue and suggests a refund amount
- Seller gets notified - Receives email alert about the dispute
- Both parties negotiate - Through the dashboard, each can:
- View all comments and refund suggestions history
- Add new comments to explain their position
- Submit refund amount proposals
- Automatic resolution - When both enter the same amount, funds distribute instantly
Understanding Refund Amounts
- Refund amount = How much goes back to the buyer
- Remaining amount = Automatically goes to the seller
- Example: On a $100 contract, agreeing on $30 refund means buyer gets $30, seller gets $70
When to Raise a Dispute
Common Reasons for Buyers
- Non-delivery - Item never arrived (suggest 100% refund)
- Wrong item - Received something different (negotiate partial or full refund)
- Quality issues - Item not as described (negotiate appropriate compensation)
- Seller unresponsive - No communication after payment (start with 100% refund request)
- Accidental payment - Made an error (request 100% refund with explanation)
How Sellers Should Respond
- Legitimate issues - Agree to appropriate refund amount quickly
- Delivery completed - Provide tracking info in comments, suggest 0% refund
- Partial fault - Propose partial refund that's fair to both parties
- Buyer error - Explain in comments but consider goodwill partial refund
Pro Tip: Starting with reasonable proposals speeds resolution. Extreme positions may prolong negotiations.
Managing Your Dispute
Through Your Dashboard
Click "Manage Dispute" on any disputed contract to:
- View history - See all previous comments and refund suggestions from both parties
- Add comments - Explain your position, provide evidence, respond to the other party
- Propose refund amount - Enter what you think is fair (can be updated anytime)
- Track progress - See how close you are to agreement
Negotiation Tips
- Be specific - Clearly explain why you're suggesting your refund amount
- Provide evidence - Reference tracking numbers, photos, or communications
- Stay professional - Constructive dialogue leads to faster resolution
- Consider compromise - Meeting in the middle often works for both parties
- Update proposals - You can change your refund suggestion anytime before agreement
Common Dispute Scenarios and Resolutions
Item Never Delivered
- Buyer action: Raise dispute with 100% refund request, explain non-delivery
- Seller with proof: Share tracking in comments, propose 0% refund
- Seller without proof: Accept 100% refund to resolve quickly
- Typical outcome: 100% refund if no delivery proof exists
Wrong or Damaged Item
- Buyer action: Explain issue, suggest refund based on item's value/condition
- Seller options: Offer full refund with return, or partial refund to keep item
- Negotiation: Discuss return shipping costs and item value
- Typical outcome: 50-100% refund depending on severity
Quality Disputes
- Buyer action: Detail quality issues, propose partial refund
- Seller response: Evaluate claim, counter with fair adjustment
- Resolution path: Often settle on 10-30% refund for minor issues
- Alternative: Full refund upon return if quality is unacceptable
Accidental Purchase
- Buyer action: Immediately dispute with 100% refund, explain the error
- Seller consideration: If not shipped, agreeing to full refund is reasonable
- If already shipped: Negotiate return process or partial refund
- Typical outcome: 100% if caught early, negotiated if shipped
What If We Can't Agree?
Funds Remain Frozen
If you can't reach agreement, funds stay frozen indefinitely. Neither party can access them until you both enter the same refund amount. This motivates finding a reasonable compromise.
External Arbitration Option
For high-value disputes where agreement seems impossible, you can jointly choose to use a professional arbitration service. This is entirely separate from our platform:
- Both parties agree to use external arbitration
- Select and pay for arbitration service together
- Arbitrator reviews evidence and makes decision
- Both parties then enter the arbitrator's decided refund amount
- System automatically executes the resolution
Note: External arbitration is rarely needed. Most disputes resolve through direct negotiation as both parties have incentive to reach agreement and unlock the funds.
Admin Support
While admins don't make allocation decisions in the auto-arbitration system, they can:
- Help facilitate communication if one party is unresponsive
- Provide guidance on using the dispute management features
- Assist with technical issues accessing the platform
- Execute resolutions in special circumstances (both parties email agreeing to specific allocation)
Best Practices for Quick Resolution
For Buyers
- Raise disputes promptly when issues arise
- Clearly explain the problem in your initial comment
- Start with a reasonable refund request
- Provide evidence (order details, photos, etc.)
- Be willing to compromise for partial issues
- Respond promptly to seller's proposals
For Sellers
- Respond to disputes within 24 hours
- Provide delivery proof when available
- Acknowledge legitimate issues honestly
- Make fair counter-offers quickly
- Consider customer satisfaction and reputation
- Document your shipping and handling process
Remember: The faster you reach agreement, the sooner funds are released. Both parties benefit from quick, fair resolution.
Preventing Disputes
Clear Communication
- Sellers: Provide detailed, accurate descriptions
- Buyers: Ask questions before funding contracts
- Both: Confirm delivery addresses and timelines
- Both: Document agreements about quality standards
Proper Documentation
- Save product descriptions and photos
- Keep shipping receipts and tracking numbers
- Screenshot important communications
- Photo items before shipping (sellers)
- Photo items upon receipt (buyers)
Contact Information
Technical Support: info@instantescrow.nz
Platform Issues: Include contract reference number and description of the problem
Note: Support staff cannot make dispute allocation decisions - resolutions must come from mutual agreement through the auto-arbitration system.