Escrow Payment Query

[ddesigns]

Dear NP Members,

I am from India, Last month i sold a domain for $XXX and received a cheque from Escrow.com. I deposited the same in my bank on 25th January 2010 but till day 25th Feb 2010 it has not been deposited in my account, My bank says that it will take 45 days in clearing a FOREIGN CURRENCY cheque.

My query is for how much time does the Escrow.com cheque is valid ???

 

[bmugford]

45 Days? That is ridiculous.

I have an Escrow check in front of me and it says "Escrow Account Void After 60 Days"

Brad

 

[snoop]

45 days is pretty normal unless you have a good relationship with you bank and they credit the money straight away (in which case they take a risk as the money hasn't actually cleared). They will probably also take a look at the check and the country it is from which may sway the decision on whether to credit your account straight away or not.

The Indian bank will have to physically send the check bank to the American bank "sent on collection", often through intermediaries, which is why it takes weeks. Personally I've banked checks within a couple of weeks of expiry and haven't had an issue in the past.

 

[ddesigns]

45 Days? That is ridiculous.

I have an Escrow check in front of me and it says "Escrow Account Void After 60 Days"

Brad

Yes Brad, i saw the same and thats why i am worried, Looks need to consult Escrow for that, what say ??

---------- Post added at 12:22 PM ---------- Previous post was at 12:21 PM ----------

45 days is pretty normal unless you have a good relationship with you bank and they credit the money straight away (in which case they take a risk as the money hasn't actually cleared). They will probably also take a look at the check and the country it is from which may sway the decision on whether to credit your account straight away or not.

The Indian bank will have to physically send the check bank to the American bank "sent on collection", often through intermediaries, which is why it takes weeks. Personally I've banked checks within a couple of weeks of expiry and haven't had an issue in the past.

Yes snoop you are right, the Bank Manager told me the same thing, just curious to know if you are from India ??

 

[snoop]

Yes snoop you are right, the Bank Manager told me the same thing, just curious to know if you are from India ??

No I am from Australia, it is the same system worldwide though.

 

[AbdulBasit.com]

My bank clears the Escrow and other checks in 28-30 days.

 

[Domagon]

Was bank wire an option? If it was, next time use that.

Checks are risky and hence the "collections" process is purposely very slow - more time to assess / minimize the risks.

In regards to the notation "Escrow Account Void After 60 Days" on Escrow.com checks, the "account" part implies each check is drawn on an individual escrow bank account, but am pretty sure that's not the case. That is to say the check is most likely drawn against a general escrow disbursement account used to pay numerous sellers - so the check, even after 60 days, would likely still go through.

With that said, such time limits may be handled differently in a "collections" situation.

Ron

 

[ddesigns]

Was bank wire an option? If it was, next time use that.

Checks are risky and hence the "collections" process is purposely very slow - more time to assess / minimize the risks.

In regards to the notation "Escrow Account Void After 60 Days" on Escrow.com checks, the "account" part implies each check is drawn on an individual escrow bank account, but am pretty sure that's not the case. That is to say the check is most likely drawn against a general escrow disbursement account used to pay numerous sellers - so the check, even after 60 days, would likely still go through.

With that said, such time limits may be handled differently in a "collections" situation.

Ron

Thanks for the inputs Ron, next time i am planning to use wire only..