ESCROW ACCOUNT An escrow is a legal concept in which an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction. The word comes from the French word escroue, which means a scrap of paper or a scroll of parchment. Many interpret that as if a third party holds the transaction until it is completed. Internet escrow emerged at the same time as Internet auctions and commerce. On July 2, 2001, Internet escrow companies were allowed to function as a licensed class by the US California Department of Business Oversight. HOW DOES IT WORK? 1 Agree on terms Begin the transaction and agree to website (escrow.com) terms of transaction. 2 Pay fees The crowdfunding platform submits the payment, and when escrow.com verifies the payment, the investor is notified. 3 Verification After payment verification, including reaching the goal, the investor is authorized to send money 4 accept funds The funds are transferred to the enterprise. 71
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