Escrow (Treuhand)

Escrow (German Treuhand) is a payment arrangement where a neutral third party holds the buyer's funds until both buyer and seller have fulfilled their obligations. For watch transactions above a few thousand euros, especially across borders or between parties without established trust, escrow is the standard mechanism.

How a watch escrow works

The basic flow:

1. Buyer agrees to purchase at an agreed price including shipping and any fees.
2. Buyer transfers payment to the escrow service, not to the seller.
3. Escrow service confirms receipt of cleared funds to both parties.
4. Seller ships the watch with tracking, often via an insured-shipping service.
5. Buyer receives the watch and has an inspection window (typically 2 to 5 business days for watches) to verify authenticity and condition.
6. Buyer accepts within the window: escrow releases funds to the seller minus the escrow fee.
7. Buyer rejects within the window: the watch goes back to the seller, the buyer is refunded, escrow keeps its fee (which one party or both pay depending on the policy).

Escrow services for watch transactions

• Chrono24 Trusted Checkout is the most-used escrow for retail watch transactions in Europe. Buyer pays Chrono24, Chrono24 holds funds, seller ships, buyer confirms within 14 days, funds release. Fees 6.5 to 9.5 percent for the seller.
• eBay Authenticity Guarantee functions as escrow plus physical authentication for watches above $2,000 in eligible categories. eBay's authenticator inspects the watch in transit.
• Escrow.com is the most-used standalone escrow service in the US, also used for cross-border transactions. Lower fees, no authenticity inspection.
• Bank-mediated escrow (Anderkonto with a notary or lawyer) for very high-value transactions, especially when a tangible-asset transfer like a watch handover is part of a larger deal.

Why escrow matters for dealers

• Buyer trust signal. Offering escrow on a high-value listing converts more buyers, particularly first-time customers or cross-border buyers.
• Authentication backstop. Platform-integrated escrow (Chrono24 Authenticity, eBay Authenticity Guarantee) includes physical inspection at a neutral facility. For dealers selling single watches with weaker provenance, this is a meaningful trust upgrade.
• Dispute infrastructure. A dispute mediated by the escrow service follows defined rules. Direct buyer-to-seller disputes can drag indefinitely.

When escrow is not used

• Trusted dealer-to-dealer transactions with established history typically settle bank-to-bank without escrow.
• In-person retail sales where the watch is handed over for cash or card payment immediately.
• Very low-value transactions where escrow fees exceed the buyer's marginal risk reduction.

For most dealer-to-end-customer online sales above €3,000, platform-mediated escrow is now the default. Direct bank-transfer-without-escrow remains common only between parties with prior history.

Related: tracking, insured-shipping, chrono24, secondary-market.