Final Project - Escrow Systems Design

escrowdemo.md

An escrow system is designed to facilitate secure transactions between parties by holding funds or assets in a neutral account until certain conditions are met.

I looked at a similar system and borrowed some inspiration from it - https://www.escrow.com/

This is my perspective on how I would go about designing it.

1. User Registration and Verification: Users (buyers, sellers, and the escrow service) register on the platform with verified information, such as email, phone number, and payment details.

2. Listing and Selection: Sellers list their products with detailed descriptions, images, and prices. Buyers browse listings and select the products they want to purchase.

3. Initiation of Escrow: When a buyer decides to make a purchase, they initiate the transaction and choose the escrow payment method.

4. Fund Escrow Account: The buyer's payment is sent to the escrow service's account but is not immediately released to the seller.

5. Seller's Acknowledgment: The seller is notified about the buyer's payment and is requested to prepare the goods for shipment.

6. Buyer's Acceptance: Once the buyer receives the goods and verifies their condition, they notify the escrow service to release the funds to the seller.

7. Dispute Resolution: If the buyer is dissatisfied with the goods, they can open a dispute within a specified timeframe. Both parties provide evidence to support their claims (such as photos, receipts, or communication records).

8. Mediation Process: The escrow service acts as a mediator, reviewing the evidence provided by both parties. If necessary, the escrow service can facilitate communication between the buyer and the seller to reach a resolution.

9. Resolution and Fund Release: The escrow service makes a decision based on the evidence presented and releases the funds to either the seller or the buyer, depending on the outcome.

10. Feedback and Rating: After the transaction is completed, both parties have the opportunity to provide feedback and ratings for each other.

11. Platform Fees: The platform deducts its fees from the transaction amount before releasing the funds to the seller.

12. Security Measures: The escrow system employs encryption to protect sensitive user data. Two-factor authentication enhances account security. Regular security audits are conducted to identify and address vulnerabilities.

13. Legal Compliance: The escrow system adheres to relevant financial regulations and consumer protection laws.

14. Continuous Monitoring and Improvement: The escrow system is regularly monitored for performance, security, and user experience. User feedback is collected to identify areas for improvement.