I am currently in the idea stage of an online escrow service where users will buy and sell used mobiles and to ensure security we will provide escrow services. I want to know the legalities involved, how to approach banks to open an escrow account, how to manage the escrow account and the transactions. Thank You.
An escrow service is a regulated business, meaning that you have to hold an escrow license in your jurisdiction in order to operate. That's the bad news.
The good news: Escrow.com offers an escrow service to marketplaces as an API. If you build a platform for buying and selling used mobile phones, you can easily plug in the Escrow.com API and start doing escrow transactions immediately. Send me an email or a PM and I'll send you some more info.
As Jackson states, in most countries online escrow is heavily regulated by Government.
So in most regions, it is best to use an established escrow service - check your Government's regulations.
In Europe, for example, all online marketplaces that handle payment now have to either use a Government regulated service (or become regulated themselves at a cost of tens of thousands of Euros or more).
Fortunately, Transpact.com offers an easy to use, efficient and ultra-low cost API to make escrow payment simple and automatic.
Jackson Elsegood, could you provide me your email address, your profile is hidden.