If you have ever paid for something online in Nepal and then received something completely different — or nothing at all — you understand exactly why escrow payments matter. Escrow is the system that makes both buyers and sellers safe in a market where trust has historically been earned slowly and lost instantly.
This guide explains how escrow works, how it compares to the payment methods most Nepali shoppers currently use, and how Troverve's escrow system protects every transaction on our platform.
What Is Escrow? A Simple Explanation
Escrow is a financial arrangement where a trusted third party holds payment from the buyer until a specific condition is met — in e-commerce, that condition is the buyer confirming they received what they ordered.
Here is the step-by-step flow of an escrow transaction:
Step 1 — Buyer places order and pays the full amount. The money does not go to the seller yet. It is held securely by the platform (in Troverve's case, in an escrow account).
Step 2 — Seller ships the product or prepares it for delivery.
Step 3 — Buyer receives the product and inspects it.
Step 4 — If the buyer confirms the product matches what was ordered, the payment is released to the seller.
Step 5 — If there is a problem, the buyer raises a dispute. The platform mediates and determines whether a refund or partial refund is warranted.
Neither the buyer nor the seller can access the escrow funds without the other's action. This is what makes it safe.
Escrow vs Cash on Delivery vs Direct Bank Transfer
Cash on Delivery (COD)
COD is currently Nepal's most popular online payment method — by some estimates, more than 70 percent of Nepali online purchases use COD. The appeal is obvious: you only pay when the product arrives, so you cannot be scammed before delivery. But COD has serious limitations. It cannot be used for digital goods. It is expensive for sellers (returns and rejection rates are high — some platforms report 30 to 40 percent COD rejection rates in Nepal). And the buyer has no protection once they have paid and the delivery person has left.
Direct Bank Transfer or eSewa/Khalti
Direct transfer — paying via eSewa, Khalti, bank transfer, or mobile banking before receiving the product — is common for transactions where buyer and seller know each other. But for strangers, direct transfer is high risk. Once you send money via eSewa or Khalti to an unknown seller, recovering it if something goes wrong is extremely difficult. Nepal Rastra Bank's consumer protection framework covers formal financial institutions, but many informal online sellers operate outside any registration.
Escrow
Escrow combines the protection of COD (you only 'pay' effectively when the product arrives and you confirm it) with the efficiency of prepayment (the seller can ship confidently knowing funds are secured). It is the gold standard for online marketplace transactions globally, used by platforms like Amazon, eBay, Airbnb, and Upwork. In Nepal, Troverve is bringing this system to the local market for the first time.
How Troverve's Escrow System Works
When you buy on Troverve, here is exactly what happens with your money:
You pay through eSewa, Khalti, or bank transfer when you place your order. The funds are immediately held in Troverve's escrow account — they do not go to the seller.
The seller receives a notification that funds are secured and ships the product. Because the seller knows payment is guaranteed upon delivery, they have every incentive to ship quickly and accurately.
When you receive the product, you have a confirmation window (currently 48 hours) to inspect it and confirm the order in the Troverve app. If you confirm, the seller is paid within 24 hours.
If you do not confirm within the window and raise no dispute, the system auto-confirms and releases payment. If you raise a dispute within 48 hours, our support team reviews the case and mediates.
What Happens if There Is a Problem?
If you receive a product that does not match the listing — wrong size, colour, damaged item, wrong product entirely — you can raise a dispute through the Troverve app within 48 hours of delivery.
Our team reviews the seller's video listing, delivery records, and your dispute evidence (photos or video of what arrived). We aim to resolve all disputes within 3 business days.
If the dispute is upheld, you receive a full refund to your original payment method. The funds are never released to the seller when a valid dispute is raised.
Is Escrow Available for All Transaction Sizes?
Yes. Troverve's escrow system applies to all transactions regardless of amount — from Rs. 200 for a single item to Rs. 50,000 for electronics or jewellery. There is no minimum or maximum. Every purchase is protected the same way.
