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What is Escrow and how does it work?

When a Buyer agrees to start work with a Seller, whether by purchasing an Hourlie service or by accepting a custom Job proposal, they are asked to pay some funds into an Escrow account.   The amount paid into Escrow is the full price of the Hourlie service, if an Hourlie purchase, or a deposit amount as defined in the accepted Job proposal.

These funds are not paid to the Seller at this point.  Instead they are held on the Buyer's behalf by PPH so that the Seller has some security before they start work, and so that the Buyer does not have to pay any money upfront before they have received the agreed deliverables.

These funds are released from Escrow to the Seller as payment under one of three circumstances:

  • When a Buyer confirms that they are happy to pay the Seller, on receipt of their invoice.  This is the usual process.
  • When there is an overdue invoice that the Buyer has either not accepted or rejected despite several reminders. The system will automatically process the invoice on the sellers behalf within 7 days for Hourlies and 15 days for Jobs.
  • As an outcome of Dispute resolution where PPH have determined that the Seller is entitled to some or full payment for work delivered. 
 
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