Skip to main content
All CollectionsNote TransactionsDuring Transaction
Choosing a payment flow at closing
Choosing a payment flow at closing
Brett Burky avatar
Written by Brett Burky
Updated yesterday

Once you and another Paperstac user have agreed to proceed to the closing phase of your deal, you will each need to agree on a payment flow for your transaction (either Paperstac escrow or Direct Payment).

When choosing this option, Paperstac will order an escrow order for your deal.  Both parties will split the escrow fee.  

Payment Flow (abbreviated)

  • Buyer wires funds to the Paperstac escrow department

  • The seller ships collateral to the auditor, and an audit report is generated.

  • Buyer and seller approve the disbursement agreement.

  • Paperstac escrow disburses funds to the seller, and the auditor express ships the collateral file to the buyer.

What happens if the deal goes bad?

  • Funds (minus Paperstac escrow fee) are returned to the buyer

  • Collateral (if shipped) is sent back to the seller from the auditor

  • Paperstac fees (if paid) are refunded

Option 2: Direct Payment

WARNING, this option can be dangerous.  Only choose this option if you know and trust the other party.  The buyer and seller will determine their payment method (usually, the buyer will wire funds directly to the seller).

Payment Flow (abbreviated)

  • Buyer and seller pay Paperstac fees via bank wire or credit card at the beginning of closing.

  • Paperstac will generate an invoice for the buyer on the seller's behalf

  • Buyer pays the buyers invoice

  • The seller ships collateral to the auditor, and an audit report is generated

  • The deal is complete after both the seller marks the invoice as paid (on Paperstac) and the buyer views the audit report and approves it (on Paperstac).

  • Once complete, the auditor express ships the collateral file to the buyer

What happens when things go wrong?

  • Funds (if paid) are returned to the buyer from the seller

  • Collateral (if shipped) is sent back to the seller from the auditor

  • Paperstac fees (if paid) are refunded

Did this answer your question?