Frequently Asked Questions

Online Transactions: Consumer Alert from the American Escrow Association

Although a number of reputable companies are currently offering secure third-party escrow services for the handling of payments relating to online purchases, there are some fraudulent operators as well.  

The American Escrow Association consists almost exclusively of individual members who conduct escrow settlement services and other related services in connection with REAL ESTATE transactions.   There are many safeguards that come with these services.   Sales of merchandise are different. 

The Association is concerned about an increase in reports of individual purchasers or sellers who send money or their products to an online escrow company, for application to an online purchase or sale of something other than real estate, and their money or product is never seen again. 

The Association does not license or authorize its logo for commercial use.   If you are otherwise concerned about the legitimacy of a company (such as any using the AEA logo (eagle symbol) and/or name) there are likely to be warning signs of whether you are at risk of your funds or products going astray. 

The US Federal Trade Commission is active in trying to shut down fraud in this area, but you have to “do your homework.”   To help, the FTC has posted very useful informational guides at the following Internet location:

 http://www.ftc.gov/onlineshopping/     

 Of particular use for escrow-related questions please see the following item:

 http://www.ftc.gov/bcp/conline/features/onlauctions.htm

If you want to file a consumer complaint about an online transaction, the FTC complaint form is at:

https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01

If you want to file a complaint that may cross over US borders to other countries consider the complaint form at:    http://www.econsumer.gov/english/

We hope this is helpful as you decide how to make payment for your online purchase.