What is an escrow account? Holding money until both sides are happy

By SendPay Business · · 2 min read

What is an escrow account? Holding money until both sides are happy

An escrow account is held by a neutral third party. The buyer pays in, the money waits there while the seller delivers, and it's released once the agreed conditions are met. Neither side has to trust the other with the money up front.

How escrow worksWhere escrow is usedFake escrow scams

How escrow works

  1. Buyer and seller agree the terms and the escrow provider.
  2. The buyer pays into the escrow account.
  3. The seller delivers the goods or service.
  4. Once the buyer confirms, or the conditions are met, the money is released to the seller.

Where escrow is used

Escrow is common for property, vehicle and domain sales, freelance and marketplace work, and business deals where large sums change hands between strangers.

Fake escrow scams

Scammers sometimes suggest an escrow site they control. Only use a provider you have checked independently, and be wary of any escrow service the other party insists on.

Where SendPay fits

SendPay does not run escrow accounts. SendPay platforms include payment links, invoicing and marketplace-style gig platforms under your own brand, powered by licensed partners.

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Questions people ask

What will escrow cost on a deal?

Work out the fee and who pays what.

Escrow fee calculator →
How do marketplace payouts work?

Paying sellers on a marketplace.

Marketplace payouts →
What is safeguarding?

How customer money is kept separate.

What is safeguarding? →
What is a chargeback?

How card disputes work.

What is a chargeback? →

Read next

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.