Zaelo Hub's escrow system is designed to create a trustworthy trading environment by holding payments securely until delivery is confirmed. This protects both Buyers and Sellers from fraud. Our escrow service complies with Nigerian financial regulations and Central Bank of Nigeria (CBN) guidelines on electronic payments.
1. What Is Escrow?
Escrow is a financial arrangement where a neutral third party (Zaelo Hub) holds funds on behalf of the Buyer until a predetermined condition is met — in this case, confirmed delivery and inspection of the purchased goods.
This means:
- The Buyer's money is safe — the Seller cannot access it until delivery is confirmed.
- The Seller is guaranteed payment — the funds are already committed and cannot be reversed by the Buyer once locked in escrow.
2. How It Works — Step by Step
Buyer Places Order
The Buyer selects a product, chooses a payment method (Wallet or Bank Transfer), and initiates checkout. Funds are immediately locked into Zaelo Hub's escrow vault.
Seller Ships the Item
The Seller is notified of the order and ships or delivers the item to the Buyer. Zaelo Hub holds the funds securely during transit.
Buyer Inspects & Confirms
Upon receiving the item, the Buyer physically inspects it. If satisfied, the Buyer provides the unique Delivery PIN to the Seller to confirm receipt.
Funds Released to Seller
Once the Seller enters the correct Delivery PIN, escrow funds are released to the Seller's Zaelo Hub wallet. The transaction is complete.
3. Escrow Fee
- A tiered escrow service fee (based on product price) is charged on each transaction, calculated on the product price.
- The escrow fee is paid by the Buyer and is included in the total amount displayed at checkout.
- The escrow fee covers: secure fund custody, dispute mediation services, and payment processing costs.
- Escrow fees are non-refundable once a transaction has been initiated, except in cases where Zaelo Hub determines the Seller acted fraudulently.
4. Payment Methods
- Wallet Payment: Funds are deducted directly from your Zaelo Hub wallet balance. Requires a Transaction PIN for authorisation.
- Bank Transfer / USSD: You are redirected to Flutterwave to complete payment via bank transfer, USSD, or your bank app. No Transaction PIN needed — your bank handles the authentication.
5. The Delivery PIN
The Delivery PIN is a unique verification code generated for each escrow transaction. It serves as proof that the Buyer has received and inspected the goods.
⚠️ Critical Safety Rules
- Never share your Delivery PIN until you have physically received and inspected the item.
- Once the Seller enters the PIN, funds are released immediately and cannot be reversed.
- If the item is not as described, do not share the PIN — open a dispute instead.
6. Escrow Timelines
- Seller delivery window: Sellers have an agreed delivery period (typically 3–7 business days) to ship or deliver the item.
- Buyer inspection window: Buyers have 48 hours after receiving the item to inspect it and either confirm receipt or open a dispute.
- Auto-release: If the Buyer does not confirm receipt or open a dispute within 7 days of delivery confirmation, funds may be automatically released to the Seller.
- Expiry: If the Seller fails to deliver within 14 days, the Buyer may request a full refund through the dispute system.
7. Disputes & Refunds
If you are not satisfied with the item received:
- Do not share the Delivery PIN.
- Open a dispute from your Orders page within 48 hours of delivery.
- Provide evidence (photos, chat screenshots, etc.).
- Zaelo Hub admin will review the dispute and make a ruling.
Possible outcomes:
- Full refund to Buyer: Funds returned to Buyer's wallet if the Seller is at fault.
- Partial refund: A portion of funds returned based on the mediation outcome.
- Funds released to Seller: If the Buyer's claim is found to be unsubstantiated.
For full details, see our Dispute Resolution page.
8. Prohibited Activities
- Attempting to bypass the escrow system by arranging off-platform payments.
- Submitting false dispute claims to fraudulently obtain refunds.
- Using escrow to facilitate money laundering or other financial crimes (per the Money Laundering (Prevention and Prohibition) Act 2022).
9. Liability
- Zaelo Hub holds funds as a neutral intermediary and is not a party to the sale contract between Buyer and Seller.
- Zaelo Hub is not liable for the quality, authenticity, or safety of items.
- Zaelo Hub's liability is limited to the escrow fees collected on the relevant transaction.
10. Contact
For escrow-related questions: