How Escrow Protects Buyers and Sellers

What is Escrow?

Escrow is a financial arrangement where a neutral third party holds payment until the buyer confirms they have received what was agreed upon.

How the Escrow Process Works

1. Buyer pays into escrow - Funds are held securely, not sent directly to seller 2. Seller ships or delivers - Knowing payment is secured 3. Buyer inspects - Confirms the item/service matches the agreement 4. Funds released - Seller receives payment after buyer approval

Benefits for Buyers

- Your money is protected until you receive your purchase - Reduces risk of paying for items that never arrive - Provides a structured dispute process if issues arise

Benefits for Sellers

- Confirmed payment before shipping - Protection against payment reversal fraud - Professional transaction process builds trust

> Important Notice: Escrow does not guarantee the quality of goods or services. It only ensures that payment is held until delivery is confirmed.

When to Use Escrow

Escrow is most valuable for:

- High-value transactions - First-time transactions with unknown parties - Cross-border purchases - Custom or made-to-order items