Online escrow service

An online escrow service accepts and holds payment from a buyer &mdash; often a wire transfer, check, money order, or credit card &mdash; until he receives and approves the merchandise. Then, the escrow service forwards the payment to the seller. The buyer pays the fee for an online escrow service &mdash; generally a percentage of the cost of the item.

The primary purpose of online escrow services is to protect buyers and sellers from fraud.