Escrow Accounts Australia | Buyers & Sellers

People searching for an escrow account in Australia are often looking for a secure way to handle payment between two parties rather than an everyday bank account.

GoEscrow provides an escrow payment facility for eligible transactions. The practical purpose is to separate funding from settlement: the payer secures the agreed transaction amount first, while settlement to the payee occurs later in accordance with the transaction details.

What is an escrow account?

“Escrow account” is used broadly to describe arrangements where money is held separately pending a later event or instruction. Different escrow, trust and payment arrangements can have very different legal structures and operating rules.

For that reason, choosing a service based only on the words “escrow account” can be misleading. Users should understand the actual payment facility, the parties’ responsibilities, how settlement is authorised and the product documents governing the service.

For a simplified explanation of escrow in Australia, see this page: What Does Escrow Mean? A Simple Australian Explanation

Why use escrow instead of a direct bank transfer?

A direct transfer creates payment risk for one or both parties. A buyer may not want to pay an unfamiliar seller before receiving the agreed item. A seller may not want to hand over a valuable item without confidence that the money is secured.

Escrow services address this problem by securely holding funds from the buyer, while the seller supplies the item, and then releasing the funds to the seller.

Can I open an escrow account online?

Online escrow services such as GoEscrow are available in Australia. GoEscrow allows users to create, authenticate and operate their escrow account fully through the app interface. Once both parties to a transaction have created their GoEscrow accounts, they can begin transacting.

Is GoEscrow a normal bank account?

For an overview of the GoEscrow payment process and agreed settlement conditions, read our Australian escrow services guide.

No. GoEscrow is not an everyday transaction or savings account. It provides an escrow payment facility for eligible transactions. Users establish a transaction, fund the agreed amount and later settle that transaction in accordance with the applicable process.

How does a GoEscrow transaction work?

Establish the transaction. The parties record the relevant transaction and payment details.
Accept the transaction. The relevant parties review and accept the transaction details.
Fund escrow. The payer funds the agreed amount.
Confirm the funding state. The parties can independently check the GoEscrow transaction rather than relying on a screenshot from the counterparty.
Complete the agreed transaction step. The parties perform their agreed handover, delivery, service or other commercial step.
Authorise settlement. When the applicable conditions are met, the payer authorises settlement and GoEscrow remits the escrow funds to the payee in accordance with the transaction.

Who might use an escrow payment service?

buyers and sellers in eligible private sales;
parties to private vehicle transactions;
businesses completing eligible commercial transactions;
customers and service providers where an appropriate escrow payment structure is permitted; and
platform or marketplace users participating in an eligible integrated transaction.

What should I check before funding?

the identity of the other party;
the goods, services or transaction you are entering;
the transaction amount and details;
when settlement will occur;
the applicable cancellation and dispute process;
the applicable fee and transaction limits; and
the current GoEscrow product documents.

Does GoEscrow guarantee the underlying transaction?

No. GoEscrow manages the financial interaction. It does not automatically inspect goods, determine value, certify workmanship, establish legal ownership or replace the parties’ own due diligence and contracts.

Frequently asked questions

Does Australia have escrow services?

Yes. GoEscrow provides an Australian escrow payment service for eligible transactions, subject to its applicable product terms and limits.

Is an escrow account the same as a trust account?

Not necessarily. These terms can describe different legal and financial arrangements. Users should examine the specific facility and its governing documents rather than treating the terms as interchangeable.

Can I use escrow for a car sale?

Escrow can be useful for car sales, however it is only one piece of the entire arrangement. Buyers and sellers remain responsible for the vehicle, ownership and transaction checks relevant to the sale. The escrow service simply secures the funds while part or all of the deal takes place.

Can businesses use escrow?

In some cases, escrow is very useful for business transactions. The appropriate arrangement depends on the underlying transaction and applicable escrow service requirements.