An escrow account is a secure account used to temporarily hold funds in a transaction between two parties. The money is deposited into this account by the buyer and is only released to the seller once all the conditions stipulated in the agreement have been met.

This system protects both the buyer and the seller: the buyer is assured that their money will not be released until the service or product has been delivered, and the seller has the guarantee that the funds are available and held securely. Escrow accounts are commonly used in commercial, real estate, international, and online transactions to build trust, reduce the risk of fraud, and secure payments.