Definition
What is Escrow Payment?
An escrow payment is a financial arrangement where a trusted third party holds funds until both the buyer and seller fulfill their agreed obligations. It protects both sides of a transaction.
How it works
In the context of automation marketplaces and freelance platforms, escrow means the client deposits funds before work begins, but the expert does not receive the money until the deliverables are approved. If there is a dispute, the platform mediates and decides how to distribute the held funds. LogicLot uses escrow for all project payments - funds are held securely and released to the expert only after the client approves the work or after a cooling-off period following delivery.
Related terms
Last updated: March 2026