Economics · E-Commerce and Banking
Escrow accounts involve a trusted third party holding funds during a transaction to protect both buyer and seller from fraud. Escrow.com operates by collecting payment from the Buyer, holding it securely, and releasing the funds to the Seller only after the Buyer confirms receipt and satisfaction of the merchandise. Which of the following best describes the role of Escrow.com in such transactions?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It issues loans to the Seller to ship merchandise
- 2It acts as a trusted intermediary holding funds until transaction terms are fulfilled✓
- 3It directly finances the merchandise purchase for the Buyer
- 4It offers insurance for lost shipments
Correct answer
It acts as a trusted intermediary holding funds until transaction terms are fulfilled
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