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Escrow and dispute terms

Effective Date: February 26, 2026

These Escrow Terms govern how funds are held, released, and managed through the InstaEscrow platform. By using InstaEscrow for transactions, both buyers and vendors agree to these terms.

1. How Escrow Works

When a buyer makes a payment through InstaEscrow:

  • Funds are collected from the buyer via card or mobile money, including M-Pesa
  • Funds are held securely in escrow by InstaEscrow
  • The vendor is notified of the payment and proceeds with order fulfillment
  • Funds are released to the vendor upon buyer confirmation or 72 hours after payment if no dispute is open

2. Fund Holding

All buyer payments are held in a secure escrow account managed by InstaEscrow. Funds are not transferred to the vendor until release conditions are met. InstaEscrow does not commingle escrow funds with operating funds. Escrow funds do not earn interest for either party.

3. Release Conditions

Funds held in escrow are released to the vendor when:

  • Buyer Confirmation: The buyer confirms receipt of goods in satisfactory condition
  • Auto-Release: 72 hours after payment, if neither party has acted and no dispute is open
  • Dispute Resolution: A dispute is resolved in favor of the vendor

4. Dispute Resolution

If a buyer is unsatisfied with their order, they may file a dispute from the time of payment until funds are released. Opening a dispute freezes the funds immediately. Guest buyers may file using the pay link together with the phone number or email on the invoice. Valid dispute reasons include:

  • Item never received
  • Wrong item delivered
  • Item damaged during delivery
  • Item not as described in the invoice

Disputes are reviewed by InstaEscrow within 48 hours. Both parties may be asked to provide evidence (photos, messages, tracking information). InstaEscrow’s decision on disputes is final. The only outcomes are a refund to the buyer or a release to the seller, and nothing else moves frozen funds. After release there is no dispute and the buyer should contact support. Buyers cannot request a refund outside a dispute. If a seller declines an order, the buyer is refunded in full automatically.

5. Refund Windows

Refunds may be issued in the following scenarios:

  • Full Refund: If the item was never delivered or a dispute is resolved in the buyer’s favor
  • No Refund: Once funds have been released to the vendor (after auto-release or buyer confirmation), refunds are not available through InstaEscrow

Refunds are processed to the original payment method within 3-5 business days.

6. Fees

The buyer always pays exactly the invoice total. InstaEscrow charges the vendor a platform fee of 1% plus the payment processing fee: 3% on card payments and 1.5% on M-Pesa payments. Both are deducted from the vendor’s payout at the time of fund release. Withdrawals to M-Pesa or bank are free. On a KES 1,000 card payment the fee is KES 10 and processing is KES 30, so the vendor receives KES 960. On a KES 1,000 M-Pesa payment the fee is KES 10 and processing is KES 15, so the vendor receives KES 975. The vendor sees the amount they will receive before the invoice is sent.

7. Payouts

Vendor payouts are processed via M-Pesa to the registered M-Pesa number on the vendor’s account. Payouts are initiated automatically when escrow funds are released. Vendors must ensure their M-Pesa details are accurate and up to date. InstaEscrow is not responsible for payouts sent to incorrect M-Pesa numbers provided by the vendor.

8. Liability Limitations

  • InstaEscrow acts solely as an escrow intermediary and is not a party to the sale between buyer and vendor
  • InstaEscrow is not responsible for the quality, safety, legality, or delivery of goods sold through the platform
  • InstaEscrow is not liable for losses due to M-Pesa service outages, network failures, or payment processor downtime
  • Maximum liability for any transaction is limited to the escrow amount held for that specific transaction
  • InstaEscrow does not guarantee the identity or reliability of any buyer or vendor

9. Prohibited Transactions

InstaEscrow may not be used for:

  • Illegal goods or services
  • Counterfeit or stolen items
  • Money laundering or terrorist financing
  • Transactions that violate Kenyan law

InstaEscrow reserves the right to freeze funds and report suspicious transactions to relevant authorities.

10. Contact

For questions about these Escrow Terms, contact us at support@autotribes.app.