Why do I need to add additional funds to escrow before I can dispute the transaction

A 3% fee of the total contract amount is applied to fund the dispute investigation and provide additional compensation to the winning party. As a buyer, if the dispute is ruled against you, you will lose the funds locked in escrow and also be charged the full 3% dispute resolution fee. However, if the resolution is in your favor, you will receive a full refund of both your locked funds and the 3% fee.

If you are a seller, you don’t pay the 3% fee upfront, since sellers cannot initiate disputes. However, if the dispute is resolved in your favor, you will receive the buyer’s escrowed funds plus 1.5% of the total contract amount (half of the dispute fee). The remaining 1.5% goes to pZipper as a resolution processing fee.

Please note that this fee structure may change in the future, as pZipper is currently in BETA.