How does an escrow account work?
Can someone explain how escrow accounts actually function for international deals? Planning a larger B2B transaction and the other party insists on escrow. Is it safe, how much does it usually cost, and are there any hidden risks I should know about?
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Escrow is quite straightforward and one of the safest ways for big cross-border payments. Basically, buyer sends money to a neutral third party, seller delivers goods/services, then escrow releases funds after confirmation Fees are usually 0.5–2% depending on amount and provider. Main risks are choosing a shady escrow company or poorly written agreement. Good ones are regulated and insured. This post explains the mechanics, types (manual vs automated), and what to check before signing: https://taxus.tech/blog/banking-and-finance/escrow-account-how-the-conditional-holding-of-funds-works/ cleared up a few things for me.