What is an escrow payment?¶
An escrow payment places value with a third party pending specified conditions. Deposit into escrow is not receipt or control by the seller.
Holding creates an intermediate state¶
The provider may retain value until delivery, service completion or dispute outcome, then release, refund, freeze or partially distribute it. Buyer, seller and escrow records can describe different stages. Informal claims of escrow should be verified against the actual provider.
Trace conditions and release¶
Preserve escrow ID, agreement or order, accounts, amount, times, statuses, dispute history and payout. Establish who created the arrangement, conditions, release authority and final destination.
Seller labels need separate control evidence, and refund does not erase the original trail. Report deposit, holding, decision and payout distinctly.
The point to remember
Follow escrow value through deposit, holding conditions, release decision and payout before concluding who controlled or benefited.