What is an Escrow Account and How to set up an Escrow Account?

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If you read our past article on Escrow, then you probably know a lot about it by now. What Escrow is and how it works. But then, you might want to know where the funds required in an escrow transaction are held before release to the final party.

In this post, we’ll talk about what an escrow account is, what it means for your payment to be in Escrow, why use an escrow account, how to set up an escrow account and which Escrow account is best for you.

What is an Escrow Account?

An escrow account is a third party account where all funds are held prior to the completion of a business transaction using escrow, offering security against scams, non-compliance and other fraudulent activities.

The escrow service provider controls all funds in an escrow account. The escrow account releases the funds to the seller when he completes his part of the business transaction or to the buyer if the seller cannot satisfy all contract agreements.

For example, when you want to buy something online, there’s little transparency in who you’re dealing with. You could pay to the seller and your goods won’t get delivered, or as the seller, you could deliver your goods without getting your complete payment. It happens to most of us.

But, when you agree to use escrow in your business transaction, the money is paid into an escrow account. And released to the seller after the buyer gets the goods and all terms of the agreement are satisfied.

Buying and selling isn’t the only situation where you can use escrow accounts. Business transactions that involve lending/borrowing, cryptocurrency trade, service offering, vehicle sales, real estate, domain name exchange, startup investments and payroll can also use escrow accounts.

What does it mean for Your Payment to be In-Escrow?

Your payment is in escrow when it has not been released to any of the transacting parties and is held in the escrow account.

Why Should You Use an Escrow Account?

An escrow account ensures security for your fund/asset. It makes sure you never lose your fund/asset in a business transaction. With an escrow account, you can go into any business transaction with confidence. As sellers, it gives you the trust big brands have with their customers, reassuring your customers that their payment won’t be made until the order is completed. And as buyers, it offers you protection against fraudsters, scam deals, and incomplete transactions.

How to set up an Escrow Account

Setting up an escrow account used to be difficult until the emergence of escrow service providers like Middletrust. Now, you can create an escrow account in less than five minutes, for FREE, using your mobile phone.

In this article, we’ll show you how to set up an escrow account using Middletrust, Nigeria’s most reliable escrow service provider.

You’ll need an active phone number, working email address, Bank Verification Number (BVN), a utility bill (which serves as a proof of address), and a valid Government-issued ID card. We request these to ensure that Middletrust serves you efficiently.

Here are the steps to creating your Middletrust escrow account:

1. Click Middletrust to go to the registration portal.
2. Fill in your mobile number, email address, full name, and password.
3. Verify your mobile number and email address.
4. Fill in your house address and gender.
5. Verify your bank account number by providing your BVN.
6. Verify your address by uploading a photo of your utility bill, e.g., light bill.
7. Verify your identity by uploading a photo of a government-issued ID, e.g., Voters Card, International Passport, Driver’s License, or National ID Card.

Which Escrow Account is Best for You?

There are a lot of escrow service providers, with different fees, customer benefits and values. But they all do the same thing, secure your transactions. How do you know which Escrow account is best for you or your business?

Here’s a list of what differentiates Middletrust from other escrow companies.

1. Middletrust offers you full control, updating you on every step of your transaction with messaging tools like SMS, emails and WhatsApp. So, you know where you are and what easy steps to take next.
2. Your money is 100% protected with an insurance value of up to ₦10,000,000.
3. Middletrust verification process ensures you’re dealing with people and not scammers.
4. We assist you in management and decision making with 24/7 customer support and analytic tools.

These and many more are the reasons Middletrust is the best escrow service provider for you.

Click on the link to set up your escrow account for FREE. Get started