Mist Network
How the Escrow Dispute Process Works (and How to Win One Fairly)
The product didn’t work, or the buyer complained unfairly. Here is how an escrow dispute runs step by step, how to prepare evidence and how the decision is made.
The escrow dispute process is the review a buyer starts from the order page when a product doesn't work or doesn't match the listing. The moment a dispute opens, the escrowed funds freeze; both sides post their evidence in the order chat, and the platform team decides from the records: full refund, payment to the seller, or a partial refund.
A dispute isn't a fight, it's a procedure. Opened at the right time with the right evidence, it usually resolves quickly; opened late or without proof, it wears everyone out. This guide covers what buyers and sellers should each do, based on how disputes work on mistDEAL.
When should you open a dispute?
Open one when there's a concrete problem you couldn't solve with the seller in chat. Typical cases:
- The delivered details don't work: wrong login, invalid license key, a file that won't open.
- The product materially differs from the listing: follower or subscriber count, limits or monetization status don't match.
- The seller took the account back: access was cut off by the seller after delivery.
- A warranty issue: the listing offered a warranty and the problem appeared within it, through no fault of the buyer.
Some things are not refund reasons: changing your mind, not getting the ad performance or income you hoped for, and penalties a third-party platform applies because of how the buyer used the product (content, payment method, IP or device changes, policy violations). The details are in the Buyer Protection and Refund Policy.
Timing: the protection window and the fast track
A dispute can be opened within a set time after delivery, tied to the buyer protection window for that category. If you do nothing, the order auto-confirms, and confirmed orders aren't refunded outside a listed warranty. So the first rule is simple: check the delivery the moment it arrives.
On mistDEAL, problems reported right after delivery go on a fast track. The seller then has a set deadline to fix the issue (new details or a new delivery), refund the order, or contest it. If they don't respond in time, the money goes back to the buyer automatically, without waiting for an admin. The fast track stops clear-cut "it didn't work from minute one" cases from dragging on for days.
How to open a dispute as a buyer
- Ask in chat first — flag the problem briefly in the order chat. A mistyped password or a missed step can often be fixed in minutes.
- Use "Problem? Open a dispute" on the order page — choose a reason and describe what happened clearly.
- Click "Open dispute and freeze funds" — from now on the money neither goes to the seller nor auto-confirms.
- Add your evidence to the chat — screenshot links, the exact error text, date and time. The decision is based on the chat and delivery records.
- Follow the seller's response — if they deliver again, test it; if it's fixed, close the dispute with "Issue resolved".
How to prepare evidence that works
Most disputes are decided by the quality of the evidence. The team looks at records, not at who argues harder. Good evidence looks like this:
| Weak evidence | Strong evidence |
|---|---|
| "It doesn't work." | "At 14:12 I logged in with the delivered details and got 'incorrect password'; screenshot link attached." |
| "Not enough followers." | "Listing says 10k; the profile showed 6,200 at delivery, dated screenshot attached." |
| Cropped, undated image | Full screenshot with date, time and account name visible |
| Chat from another app | Recorded messages in the order chat |
Never post your own personal passwords or other accounts' details in the chat; keep the evidence limited to what shows the problem.
How sellers should respond
When a dispute opens, sellers are generally expected to respond within 24 hours; on the fast track, the deadline shown on screen applies. A seller has three options:
- Fix it: add working details or a new file in the delivery area. The buyer checks; if it's fixed they close the dispute, if not they say so in chat and an admin reviews.
- Refund: if the problem is on your side, refund the order. That's usually better for your store's health than a drawn-out argument.
- Contest: if the issue isn't yours, contest it with your reasoning and an admin reviews the records.
A seller's strongest defence is the record left at delivery time: when the details were delivered, explanations in the chat, and warranty terms written clearly in the listing. As our guide on how to sell digital products safely stresses, measurable listing details and keeping all communication in the order chat protect sellers against unfair claims.
How the decision is made
If the seller contests, or a new delivery doesn't fix the issue, the mistDEAL team steps in. mistDEAL acts as an intermediary: if the records show the seller didn't provide what was promised, or there's a genuine problem, the escrowed amount is refunded to the buyer; otherwise it's paid to the seller. The possible outcomes:
The decision and its reasoning are published on the order page. Either side may be asked for more information during review, and a side that doesn't respond may lose. If no admin is online, the dispute is queued and picked up by the first available one; the funds stay frozen and safe throughout.
Buyers found to open disputes in bad faith can have their accounts restricted. The process exists to fix real problems, not to extract undeserved refunds.
Where refunds go
Refunds go to the buyer's mistDEAL balance and can be used immediately. Because of how blockchains work, crypto payments can't be automatically sent back to the sending address. Requests to withdraw balance back to crypto are handled through live support; the network fee is on the buyer and identity verification may be requested.
Disputes on peer-to-peer deals
The same logic applies to off-listing deals between two users. After the seller clicks "I've delivered", the buyer can open a dispute instead of confirming; the funds freeze and an admin decides on a full refund, payment to the seller or a partial refund, based on the deal terms and deal chat. That's why the "terms" field is the most important document in a peer-to-peer deal. See our peer-to-peer escrow guide for the full flow.
How to avoid needing a dispute at all
- Buyers: read the listing carefully, test the delivery at once, and secure account purchases right away.
- Sellers: describe the product with numbers, state warranty terms clearly, and document delivery with short notes in chat.
- Both: never move the conversation off-platform. Outside messages aren't part of the review, and outside payments aren't protected. Our list of online marketplace scam red flags shows why.
