What does escrow payment actually mean?
When using a escrow (fiduciary) payment procedure, the transfer of funds goes through a third and neutral party (the trustee). This third party ensures that the money is not paid out to the seller or service provider until the goods or services have been handed over and checked and also in the agreed condition. Conversely, the seller is protected from the fact that the buyer makes a chargeback despite delivery of the goods or service. The involvement of a trustee thus increases the orderly settlement of the purchase and the agreed payment and effectively protects against fraud. The escrow settlement is the safest payment method and avoids the financial advance risk for all involved parties.