How Online Escrow Services Are Used On Ebay
Escrow accounts protect auction participants from potential fraud. The way they work is the same as in, for example, a real estate or legal transaction, which is where most people would have dealt with escrow before. Money held in “escrow” by a third party had been received from the payer but is not released to the payee until something happens, usually, receipt of the goods in promised condition. Upon confirmation of the merchandise receipt the money is credited (forwarded) to the account of the seller. In such transactions the buyer, who benefits more in theory, generally pays the fee.