marketplace en
Escrow
marketplace
Plain-language definition
Plain-language definition
An arrangement where a neutral party holds money until agreed conditions are met.
Why it matters
Calling ordinary delayed marketplace payouts “escrow” can create legal and consumer confusion.
Technical detail
Escrow separates custody of funds from buyer and seller and releases or returns them according to defined contractual conditions.
Examples
- Funds remain held until delivery is confirmed under the stated transaction terms.
Related terms
Sources and review
Reviewed July 12, 2026 by [email protected]. Next review due July 11, 2027.
- Buying From an Online Marketplace — United States Federal Trade Commission Accessed 7/11/2026
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