Escrow
Definition
Escrow is a mechanism where a neutral third-party holds payment until both buyer and seller confirm the transaction is complete.
Full definition
Escrow has been used since the 19th century in Anglo-Saxon real estate, and is now common for any risky transaction. In the EU, escrow is regulated by PSD2. TrustProtect SAS is a technical platform that uses Stripe Connect: Stripe Payments Europe Ltd (e-money institution licensed by ACPR n°17579 via EU passport) collects, holds, and disburses funds. TrustProtect never has direct access to user funds.
Real example
Real example: a buyer purchases a €8,500 used car on Leboncoin. They pay via TrustProtect (escrow). Funds are held. Seller delivers the car. Buyer inspects, approves. Seller is paid instantly. If there's an issue, full refund.
Equivalent terms
Sources and official texts
🎯 Key takeaways
- •Escrow is a mechanism where a neutral third-party holds payment until both buyer and seller confirm the transaction is complete.
- •Category: paiement — Sources: DSP2, ACPR
Related terms
paiement
Tiers de confiance
A trusted third party is a neutral entity that guarantees the proper execution of a transaction between two parties by temporarily holding funds or goods.
juridique
Séquestre
Escrow account: funds or assets held by a neutral third party who releases them based on pre-agreed conditions.
paiement
PSP (Prestataire de Services de Paiement)
A PSP is a company licensed by banking authorities to provide payment services: card issuance, acquisition, transfers, escrow, e-wallets.
paiement
Chargeback
Chargeback is a procedure allowing a cardholder to request a refund from their bank for a disputed payment.
Put this into practice
TrustProtect offers secure escrow payments + vehicle/contractor verification reports from €99.99.
See verification reports