What Happens During an Escrow Dispute?

By the EscrowPK Team · 2026-03-01 · 6 min read

No matter how well a platform is built, disagreements happen — an item arrives damaged, a delivery is late, or a description turns out to be inaccurate. What matters is what happens next. Here's exactly how a dispute unfolds on EscrowPK.com.

Step 1: Raising the dispute

Either the buyer or the seller can open a dispute directly on the deal, selecting a category (late delivery, item not as described, damaged item, non-responsive party, and others), stating the amount in question, and attaching evidence. The moment a dispute is raised, the deal's funds are frozen — nobody can withdraw or release anything while it's active.

Step 2: The other party responds

The counterparty is notified and given a chance to respond with their side and their own evidence. In many cases, this alone is enough to clear up a misunderstanding.

Step 3: Direct negotiation

Both sides can message each other through the platform and make formal settlement offers — for example, a partial refund instead of a full one. If both parties agree, the dispute resolves right there, without needing outside involvement.

Step 4: Escalating to arbitration

If no agreement is reached, either side can escalate the case. This requires a small arbitration fee, which brings in a neutral EscrowPK.com arbitrator to review the case formally. Both parties are given time to submit additional evidence — screenshots, photos, chat history, tracking information.

Step 5: The arbitrator's decision

The arbitrator reviews everything submitted and makes a decision strictly on the facts — releasing funds to the seller, refunding the buyer, or ordering a return of the item before funds are released. This decision is binding and is not influenced by who raised the dispute first.

Step 6: Resolution and closure

Once a decision is made — and, if applicable, a return shipment is confirmed delivered — funds are released according to the arbitrator's ruling and the dispute is closed. Throughout the entire process, the money never simply defaults to either side; it moves only once a fair conclusion has been reached.

This is the real value of using EscrowPK.com over a direct payment: when something does go wrong, you're not left arguing in a comment section or a WhatsApp chat with no resolution in sight. There's an actual process, with real evidence and a neutral decision-maker, behind every deal.