Learn in the textbookE-Commerce Trading Platforms and Services
DefinitionAn escrow service (エスクローサービス) is a service in which a trusted third party (第三者), not one of the people trading, holds the payment for a while and passes it to the seller once receipt of the goods is confirmed.
ExplanationWhen you trade with a stranger, neither the side that pays first nor the side that ships first can easily trust the other. Having a third party hold the money and stand in the middle makes it less likely that either side is the only one to lose out.
AnalogyLike two strangers trading through a trusted witness who holds the cash and hands it to the seller only after seeing the goods change hands.
Memory hookEscrow comes from an Old French word for a scroll or deed, meaning a document a third party keeps until the agreed conditions are met.