ScrapMonster has partnered with Acerium to present our newest product, escrow. In hopes to further the services currently available on our website we are launching another feature to help our clients perform scrap transactions.We are confident that our escrow product will allow all of our members to buy and sell scrap quickly, securely and at a low cost.Our escrow service is faster and cheaper than a letter of credit process.
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A ScrapMonster escrow transaction begins with both the buyer and seller agreeing to the terms of the deal. Both parties formally sign an escrow Contract, which acts as a binding document on the transaction. Acerium acts as a trusted neutral third party throughout the deal.
The buyer wires funds into an escrow account. The funds are secured and fully insured as per U.S. Law.
The seller then ships the material and sends copies of the shipping documents to the buyer and Acerium. The buyer reviews the shipping document copies to ensure they comply with the terms outlined in the escrow Contract. If discrepancies arise, the buyer and seller may mutually agree to amend the contract; unlike a letter of credit, there are no additional fees for amendments.
Once the buyer and seller are agreed on the contents of the shipping document copies, the seller sends the original shipping documents to Acerium. At this point, both the buyer and seller are completely protected by Acerium, and neither party may default on its side of the transaction.
Acerium then simultaneously releases funds to the seller and the approved shipping documents to the buyer. This flow is similar to a letter of credit, as a supplier must submit original documents to be paid. However, escrow is much faster and cheaper than a letter of credit process, especially since the transaction only uses a single neutral counterparty rather than multiple banks.
In some cases, a buyer and a seller cannot come to an agreement on a discrepant transaction. In this case, the parties may elect to have an independent arbitration determine the settlement of the funds.
Acerium's service is fully licensed and bonded, and is federally regulated by the government of the United States of America. All deposits are insured and are maintained at internationally-recognized banks. Upon registration all companies must comply with U.S. Anti-Money Laundering and KYC laws.