How Escrow Protects Your Payment on LogicLot: A Complete Guide
13 min read
By LogicLot Team · Last updated March 2026
How LogicLot's escrow system works: how funds are held, milestone releases, dispute resolution, protection for both buyers and experts. Built on Stripe for PCI-DSS Level 1 security.
Trust is the foundational challenge of any marketplace. A buyer wants assurance that their money is safe until work is delivered. An expert wants assurance that they will be paid once they deliver quality work. Without a mechanism that protects both sides, transactions stall: buyers hesitate to pay upfront, experts hesitate to work without payment, and both sides assume the worst.
Escrow solves this problem. On LogicLot, every project payment is held in escrow---a secure third-party hold---until you, the buyer, approve each milestone delivery. The expert can see that your payment is secured (motivating them to deliver) but cannot access the funds until you are satisfied (protecting your investment). This guide explains exactly how the escrow system works, what happens at each stage, how disputes are resolved, and how the technical infrastructure ensures your money is safe.
Why escrow exists: the trust problem in automation services
Automation projects are particularly susceptible to trust failures because:
The deliverable is intangible. Unlike buying a physical product, you cannot inspect an automation before it is built. You are paying for expertise, time, and a digital deliverable that only has value if it works correctly.
Quality is hard to verify upfront. A polished proposal does not guarantee a polished build. The quality of an automation is only apparent after testing---after the expert has already invested significant time.
Scope is complex. Automation projects involve technical specifications, business logic, integrations, and edge cases. Misunderstandings about scope are common and can lead to disagreements about whether the work was "done."
The stakes are real. Businesses are investing hundreds to thousands of euros. Experts are investing days to weeks of work. Neither side can afford to lose.
Escrow eliminates the trust barrier by making the transaction conditional: the buyer commits the money, but the expert earns it only by delivering approved work. Both sides have skin in the game, and the platform mediates if they disagree.
The escrow flow: step by step
Step 1: Fund the milestone
When a Custom Project begins, the project is divided into milestones---each with a defined deliverable and price. Before the expert starts work on a milestone, you fund it.
How funding works:
- You click "Fund Milestone" in your project dashboard
- Payment is processed via Stripe, the global payments infrastructure used by Amazon, Google, and millions of businesses worldwide
- Your payment method is charged (credit card, debit card, or other Stripe-supported method)
- Funds are captured by LogicLot's Stripe account and placed in escrow
- You receive a confirmation that the milestone is funded
- The expert receives a notification that payment is secured
What "funded" means: Your money has left your account and is held by LogicLot. It is not in the expert's account. It is not available for the expert to withdraw. It is locked until you approve the delivery or a dispute is resolved.
Currency and payment methods: Payments are processed in euros (EUR). Stripe handles currency conversion for buyers paying from non-euro accounts. Stripe supports all major credit and debit cards, Apple Pay, Google Pay, and SEPA Direct Debit for European bank accounts. No cryptocurrency, no wire transfers, no PayPal---all payments go through Stripe for consistency and security.
Step 2: Funds are locked in escrow
Once funded, the milestone enters the "locked" state. This is the period between your payment and the expert's delivery.
What happens during the lock:
- Funds sit in LogicLot's Stripe escrow account
- The expert can see in their dashboard that the milestone is funded (a green "Payment Secured" indicator)
- Neither you nor the expert can withdraw the funds
- The expert begins working on the milestone deliverable
- You can message the expert, ask for updates, and track progress
Why the lock matters for buyers: Your money is committed but protected. If the expert disappears, fails to deliver, or delivers something that does not meet requirements, you have recourse through the dispute system. You are never in a position where you have paid and have no leverage.
Why the lock matters for experts: The expert knows that payment is guaranteed once they deliver approved work. This eliminates the risk of doing the work and then not getting paid---a common problem with freelance and consulting arrangements outside of escrow-protected platforms. The guaranteed payment motivates experts to prioritise your project and deliver their best work.
Step 3: The expert delivers
When the expert completes the milestone deliverable, they mark it as delivered in the project dashboard. The delivery typically includes:
- The completed automation, integration, or workflow
- Documentation explaining how it works (architecture, triggers, actions, error handling)
- Testing evidence (screenshots, logs, video walkthrough, or test results)
- Setup instructions or configuration notes (if applicable)
- Any credentials, access details, or assets you need to own the deliverable
You receive a notification that the milestone is ready for review. The escrow status changes to "Delivered --- Awaiting Review."
Step 4: You review the delivery
This is your quality gate. Take the time to review the deliverable thoroughly.
How to review effectively:
- Test with real data (or realistic test data). Run the automation with actual inputs. Does it produce the correct outputs? Does it handle the volume you specified?
- Check edge cases. What happens when input data is missing, malformed, or unexpected? Does the automation handle errors gracefully or fail silently?
- Verify integrations. If the automation connects multiple systems, verify that data flows correctly between all of them. Check that no data is lost, duplicated, or corrupted in transit.
- Review documentation. Is the documentation clear enough that your team could maintain the automation? Are the architecture decisions explained?
- Compare to requirements. Go back to the original brief and the expert's proposal. Does the delivery match what was agreed?
Review timeline: You have a reasonable window to review each milestone (typically 7 to 14 days, depending on project terms). If you need more time, communicate with the expert. Extended review periods without communication may trigger automated follow-ups from the platform.
Step 5: Approve and release funds
When you are satisfied that the milestone meets the agreed requirements, you approve it in the project dashboard.
What happens when you approve:
- The escrow status changes to "Approved"
- Funds are released from escrow
- The platform commission is deducted (see pricing for commission rates)
- The remaining amount is transferred to the expert's connected Stripe Connect account
- The expert typically receives the payout within 2 to 7 business days, depending on their Stripe account configuration and country
- You receive an invoice for the milestone payment
- The project advances to the next milestone (if applicable)
What you are approving: You are confirming that the deliverable meets the requirements agreed in the proposal. You are not approving perfection---no software is perfect. You are confirming that the expert delivered what they said they would deliver, to the standard agreed upon.
Step 6: Repeat for subsequent milestones
For multi-milestone projects, the cycle repeats: 1. Fund the next milestone 2. Expert builds 3. Expert delivers 4. You review 5. You approve (or request revisions) 6. Funds release
Each milestone is independent. You are never paying for work you have not reviewed. If you need to pause or cancel the project after a milestone, you keep all deliverables from approved milestones and owe nothing for future ones.
Requesting revisions (before approving)
If the delivery does not fully meet the agreed requirements, you do not have to approve it immediately. Here is the revision process:
1. Identify specific issues. Be concrete. "This does not work" is not actionable. "The automation fails when the input email has no attachment---it should skip the attachment step and continue processing" is actionable.
2. Communicate through the project messaging system. Document revision requests in the platform's messaging system, not in external channels. This creates a record that is used if a dispute arises.
3. The expert revises. Legitimate revision requests---meaning issues where the delivery does not match the agreed scope---are addressed by the expert at no additional cost. The expert re-delivers, and you review again.
4. Scope vs. revision. If your revision request involves functionality that was not in the original scope (a new feature, an additional integration, or a changed requirement), the expert may flag it as a scope change. Scope changes are negotiated and priced separately. This is fair---the expert priced their proposal based on the original scope, and additions require additional work.
How many revision rounds are typical? For well-scoped milestones, 0 to 1 revision rounds are typical. If a milestone requires 3+ rounds of revisions, it usually indicates a scope clarity issue that should be discussed openly.
Dispute resolution: when buyer and expert disagree
Disputes are rare (fewer than 5% of projects on well-run marketplaces), but when they occur, LogicLot has a structured resolution process.
When to raise a dispute
Raise a dispute if:
- The expert delivered work that clearly does not match the agreed scope and has not addressed your revision requests
- The expert has stopped communicating and has not delivered
- You believe the quality of work is fundamentally below professional standards
- There is a disagreement about whether the scope was met that you and the expert cannot resolve directly
Do not raise a dispute for:
- Normal revision requests (use the revision process above)
- Scope changes you want but did not include in the original brief
- Buyer's remorse (you changed your mind about the project)
- Issues that the expert is actively working to resolve
How dispute resolution works
1. You raise the dispute. Click "Raise Dispute" in the project dashboard. Describe the issue in detail and provide evidence (screenshots, test results, comparison to requirements).
2. The expert responds. The expert has an opportunity to respond with their perspective and evidence.
3. LogicLot reviews. Our support team reviews:
- The original brief and proposal (what was agreed)
- The delivered work (what was built)
- The revision history and communications (what was discussed)
- Both parties' dispute submissions (each side's case)
4. Decision. LogicLot makes a binding decision. Possible outcomes:
- Full approval: The work meets the agreed scope. Funds release to the expert.
- Full refund: The work fundamentally does not meet the agreed scope. Funds return to the buyer.
- Partial refund: The work partially meets requirements. A portion of funds is released to the expert for work completed; the remainder is refunded to the buyer.
- Rework order: The expert is directed to address specific issues before funds are released. A clear rework scope and timeline are defined.
5. Execution. The decision is executed within 48 hours. If a refund is ordered, funds are returned to your original payment method via Stripe.
Dispute prevention
The best dispute is one that never happens. To minimise dispute risk:
- Write a detailed brief with clear, measurable requirements
- Ask clarifying questions during the proposal phase---do not assume
- Review and test each milestone thoroughly before approving
- Communicate scope changes early and agree on adjustments before they become disputes
- Use the platform messaging system for all project communication (creating a documentary record)
How escrow protects experts
Escrow is not just for buyers. It protects experts in equal measure.
Guaranteed payment. Once a milestone is funded, the expert knows the money is there. They do not have to chase invoices, negotiate payment terms, or worry about non-payment. This is a significant improvement over the freelance and consulting norm, where late payments and non-payments are common (a Freelancers Union survey found that 71% of freelancers have struggled to collect payment at some point).
Clear scope boundary. Because the proposal defines the scope and the milestone defines the deliverable, experts have a clear reference point for what "done" means. If a buyer tries to add scope without adjusting the price, the expert can point to the agreed terms.
Dispute protection. If a buyer unreasonably refuses to approve a milestone that clearly meets the agreed scope, the expert can raise a dispute. LogicLot's review process protects experts from bad-faith buyers just as it protects buyers from underdelivering experts.
Professional environment. The structured escrow process (fund, build, deliver, review, approve) creates a professional working relationship. Both parties know the rules. This reduces friction, builds trust, and leads to better outcomes.
Technical infrastructure: how your money is secured
LogicLot's escrow system is built on Stripe, the global payments infrastructure that processes hundreds of billions of dollars annually.
PCI-DSS Level 1 compliance. Stripe is certified to the highest level of payment card industry security standards. Your card details are never stored on LogicLot's servers---they are handled entirely by Stripe's secure infrastructure.
Fund segregation. Escrowed funds are held in LogicLot's Stripe account, separate from operational funds. We never commingle buyer payments with platform operating capital. This means your escrowed funds are not affected by the platform's operational expenses.
Stripe Connect for payouts. Expert payouts are handled via Stripe Connect, the marketplace payout system used by platforms like Lyft, Shopify, and DoorDash. Stripe Connect ensures that expert identity is verified, payouts are compliant with local regulations, and funds are transferred securely.
Encryption. All payment data is encrypted in transit (TLS 1.2+) and at rest (AES-256). Stripe's infrastructure is audited annually by independent PCI Qualified Security Assessors.
Fraud protection. Stripe's fraud detection system (Stripe Radar) monitors all transactions for suspicious activity. Combined with LogicLot's own verification processes, this provides multi-layered protection against fraudulent transactions.
Regulatory compliance. Stripe operates under financial regulations in each country it serves. In Europe, Stripe is authorised by the Central Bank of Ireland as an electronic money institution, ensuring compliance with EU payment regulations including PSD2 (Payment Services Directive).
Escrow for solution purchases
Escrow also applies to purchases of pre-built solutions from the LogicLot solutions marketplace. When you buy a solution:
- Payment is processed via Stripe
- If the solution includes a service component (setup, customisation), funds follow the same escrow flow as Custom Projects
- If the solution is a delivered digital product (template, workflow file), the purchase is completed immediately and the expert receives payment after a standard satisfaction window
Frequently asked questions about escrow
Understanding how escrow works builds confidence in using the platform. Here are the most common questions, answered in detail.
Can the expert access my funds before I approve? No. Funds are locked in escrow from the moment you pay until the moment you approve (or a dispute is resolved). The expert can see that payment is secured, but they cannot withdraw, transfer, or access the funds in any way.
What if the expert does not deliver? If the expert fails to deliver within the agreed timeline and has not communicated a reasonable delay, you can raise a dispute. If the expert has not delivered work, funds are refunded to you.
What if I forget to approve? The platform sends reminders when a milestone is delivered and awaiting your review. If an extended period passes without review or communication, the platform may reach out to both parties to resolve the status.
Are there any fees on escrow transactions? Stripe's standard payment processing fees apply (built into the transaction). There is no additional escrow fee. Buyers pay the quoted price; experts receive the quoted price minus the platform commission. Full pricing details.
Can I fund all milestones upfront? Milestones are funded one at a time by default. This protects you by limiting your financial exposure to one milestone at a time. You can fund the next milestone as soon as the previous one is approved.
How long does a refund take? Refunds are processed via Stripe and typically appear on your statement within 5 to 10 business days, depending on your bank or card issuer.
Start a project with escrow protection --- post a Custom Project or run a Discovery Scan on LogicLot. Every payment is protected.