Escrow payment is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. The funds are held by the third party until it receives the goods or services from the seller, and the buyer confirms that they are satisfied with the goods or services received.
In the world of freelancing, escrow payment is a common practice that provides a level of protection for both clients and freelancers. Clients can fund the project before work begins, and the funds are held in an escrow account until the project is completed to the client’s satisfaction. Freelancers are assured of payment for their work, while clients are assured that their payment will not be released until the project is completed to their satisfaction.
Escrow payment systems are commonly used on freelance marketplaces like Fiverr, Upwork, Guru, and Freelancer.com. They provide an additional layer of security for both clients and freelancers, making it a good practice for freelancers to use escrow payment systems whenever possible.