Will you be giving access to your bank to the escrow provider too ?
This is very good question. And it opens another can of worms.
Even if you give read-only access to your bank account, how escrow agent will be sure that the sender of the fiat funds will not issue chargeback?
I just got an international wire reversed!
I didn't even know that's possible.
I got the wire, released the bitcoins, several days later my bank got request for the wire to be returned! My account could have been suspended too.
I didn't even know that's possible!
Is there a way to avoid that in future?
The nick of the buyer was Prncssdd2003, but I'm sure he will be using different one in future. So, be careful.
But more important is to understand how that is possible and how to prevent it.
This is pretty usual on Bitcoin sales.
SEPA transfers can be reversed by several reasons the most usual one is by fraud.
A phises B and get control of B account, then start a buy and pay with B account, B detect the fraud and complaint's to B's bank, then B's Bank order the reversal to your bank.
Then it is up to your bank (and it's international treats) to reverse or not but usually you can do nothing about that.
For International cross border payments (SWIFT) there are 2 options and is dependent on timing.
- MT192, request for cancellation can be sent after the initial payment request (MT103) but can only be done if the payment hasn't been enacted upon (debit on your account).
- MT195, query request (recall) this will normally require a debit authority from the recipient to agree to funds being returned.
The escrow agent cannot guarantee that the sender of the wire transfer is genuine (the wire transfer might be initiated by cracker, not by the real bank account holder).
This is why
permissionless financial technologies like Bitcoin are superior compared to the
legacy financial system (SWIFT, 'licensed' exchanges et al).