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Choosing a payment flow at closing
Choosing a payment flow at closing
Mike McLin avatar
Written by Mike McLin
Updated over a week ago

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 Escrow.com or Direct Payment).

When choosing this option, Paperstac will order an escrow.com transaction for your deal.  Both parties will split the escrow.com fee.  Paperstac fees will be integrated into the escrow.com transaction.

Payment Flow (abbreviated)

  • Buyer wires funds to escrow.com

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

  • Buyer and seller approve disbursement at escrow.com

  • Escrow.com 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 escrow.com 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 and seller will determine when the invoice should be paid (before the seller ships collateral to an auditor or after)

  • 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

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