What is escrow?

Escrow Definition: Escrow refers to when an agreed-upon amount, such as a transaction to pay for goods or services, is held in trust by a third party on behalf of the seller and the buyer. This third party is also known as an escrow agent and holds the funds until the requirements of the seller or freelancer are fulfilled, as confirmed by the buyer when the money is released for payment to the buyer.

Escrow is neutral and does not benefit in any way from the buyer or seller in this transaction, and this role is usually performed through a website or platform, where services are offered or purchased. An online escrow includes purchasing custom-made jewelry, art, or a specific service, such as graphic design.

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