I am a newbie here and I am working on freelancer site, I have worked for some time on it, now I want to withdraw my earnings. My buyer emailed me mentioning that he will send the money only through escrow. I never heard about it. Don't know the use of it also. I searched on search engine but didn't find any reasonable answer. Please help me, how it is used and how can I use it? Thanks in advance for your comments and reviews. If it is a duplicate, I apologize in advance but I have not seen this yet.
It's basically a mutual 3rd party that holds the product being sold from the seller and holds the payment from the buyer. When both parties agree, they release the product and the money. It's a good way to sell high dollar goods or services, where the buyer cannot reverse the transaction once accepted. It also protects the seller as the buyer cannot defraud the seller.
Hi, Escrow is the safest mode of payment, so you have nothing to worry about. Let me explain in the simplest manner possible. Your client will transfer the money via Escrow. This means the client has the money to pay you. Once he said I have escrowed the money, it means he has transfered it but you still don't have access to it. Once you complete the project, he will release the money from his account and the money will show up in your account. It's the safest because when a client escrows, your rest assured that he has enough money in his account to pay you. In most cases, clients would prefer to pay after the task is completed, but if they use escrow you are safe.. I hope that clears your doubt..