Query about Localbitcoins trading website

[zenid]

If you post an add offering to buy people's bitcoins for a particular price, am I right in thinking that anyone who replies has to do it through the escrow system?

What confused me is that it says:
"Currently the escrow service is only enabled for advertisements selling bitcoins, and the seller has to have the bitcoins in the localbitcoins.com wallet before selling them. Support for "BUY" advertisements coming soon!"

But the whole point of escrow is that the coins people offer me are held by the localbitcoins site until I've made my payment, whereupon, and released when the seller acknowledges receipt of payment. But what if the seller refuses to acknowledge payment? Is there then a dispute process where I provide evidence that the bank transaction was made?

Some clarification would be appreciated, as mistakes could be pretty costly!

Thanks!

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[DannyHamilton]

- snip -
But what if the seller refuses to acknowledge payment? Is there then a dispute process where I provide evidence that the bank transaction was made?
- snip -

From https://localbitcoins.com/escrow_process_guide

Terms & conditions

• Buyer must initiate and mark the payment within an hour, otherwise the purchase will auto-cancel.
• Localbitcoins.com staff handles disputes based on evidence and reputation supplied by trade participants.
• Disputes can be filed after 48 hours after payment is marked complete.
• If buyer has zero feedback and is not responding to messages, escrows may be reversed faster.
• Fee is 1% for the advertiser on succesful trades. If the buyer cancels the deal, no fees.
• Limits apply how much you can use the escrow feature - first timers are only able to purchase maximum of certain amount etc. These are automatically enforced.
• Any kind of irresponsible behaviour will result in negative reputation. Please behave in a good & professional way.
• After the escrow has been released by the seller, the trade will be considered finished by localbitcoins.com, and cannot be disputed.

Emphasis added by me.

[zenid]

From https://localbitcoins.com/escrow_process_guide

Terms & conditions

• Buyer must initiate and mark the payment within an hour, otherwise the purchase will auto-cancel.
• Localbitcoins.com staff handles disputes based on evidence and reputation supplied by trade participants.
• Disputes can be filed after 48 hours after payment is marked complete.
• If buyer has zero feedback and is not responding to messages, escrows may be reversed faster.
• Fee is 1% for the advertiser on succesful trades. If the buyer cancels the deal, no fees.
• Limits apply how much you can use the escrow feature - first timers are only able to purchase maximum of certain amount etc. These are automatically enforced.
• Any kind of irresponsible behaviour will result in negative reputation. Please behave in a good & professional way.
• After the escrow has been released by the seller, the trade will be considered finished by localbitcoins.com, and cannot be disputed.

Emphasis added by me.

Thanks!

[DirtyGoldMan]

I have used localbitcoins.com a few times in the past week with great results. In all instances I was the buyer so the seller had to place the amount of BTC in escrow. Will use again in the future as I'm very pleased with the process thus far.

[Chax]

Does anyone know how long Escrow stays open for on localbitcoins? Ive got funds waiting in escrow but my payment wont transfer till tomorrow. I read on here that the funds stay tied up for 48 hours but elsewhere it looks like 90 minutes before it cancels itself.

[topquark]

I've had very good results buying on localbitcoins. The sellers have all been very quick to confirm the transaction. I've been careful to deal only with sellers who have good feedback.

At some point I would like to start selling on localbitcoins, but am worried about security for sellers. What's to stop a scammer buying bitcoin and getting their bank to reverse the transaction later? As I understand it, advertising sellers do not get to choose the buyer they work with, so checking feedback doesn't work. Have I misunderstood?

[Wompaone]

bump

[j4mmr2]

What's to stop a scammer buying bitcoin and getting their bank to reverse the transaction later?

How does one get their bank to reverse a transaction? As far as I'm aware once you transfer funds to someone's account it cannot be reversed. I once transferred money to the wrong bank account (had one number wrong on the account number) and when I told the bank this they said there was nothing they could do but send a letter to the person who owns the account and see if they are willing to transfer it back...

I ended up phoning customer services and blaming it on a cashier inputting the wrong number so the bank would give me my money back and it worked. I felt like a complete **** but it was nearly a months wages so I was desperate.

[bitsource]

Interesting comments. I have used localbitcoins several times. I have had some good and some bad experi8ence.

Turns out one buyer operated with stolen bank account/cards and it resulted in a whole lot of grief for me as the seller.

Even if you think the transaction is safe - be aware - the scammers and fraudsters spend a lot of time trying to screw you out of both Bitcoins and money.

Thankfully localbitcoins have been very cooperative and easy to communicate with, however, there is very little they can actually do.

Be very careful - that's all I can say!!

[ahreal]

Was there anything that tipped you off? Or suggestions for things to be aware of?

[DannyHamilton]

- snip -
I ended up phoning customer services and blaming it on a cashier inputting the wrong number so the bank would give me my money back and it worked. I felt like a complete **** but it was nearly a months wages so I was desperate.

The cashier probably got fired, and lost several months wages while they searched for a new job.