Escrow for Marketplaces

When a buyer pays through a PayKeeper-integrated marketplace, their funds go into a dedicated escrow account — not directly to the seller. The seller only receives payment after the buyer’s release conditions have been met, whether that means confirming delivery, completing an inspection window, or accepting a completed service.

This means that even if a seller fails to deliver, disappears, or misrepresents their goods or services, the buyer’s money has not moved. PayKeeper maintains the hold until the conditions are satisfied or a dispute resolution process determines the appropriate outcome. The result is a materially safer transaction environment for buyers, which in turn increases buyer confidence and transaction volume for the marketplace.

Sellers on PayKeeper-integrated marketplaces benefit from a funded escrow system that confirms buyer payment before the seller is expected to perform. Rather than relying on a buyer’s word or an unsecured payment promise, sellers can see that funds are held and committed in escrow before shipping goods, delivering services, or fulfilling a contract.

Once release conditions are met, disbursement is governed by the sales agreement pre-determined transaction milestones, not by the buyer’s willingness to pay. This eliminates the most common mechanism for seller fraud on marketplace platforms: the buyer who claims non-delivery after receiving goods. The documented escrow and release record creates an audit trail that is highly effective in dispute resolution.

PayKeeper’s API is designed for practical integration by lean engineering teams. The core integration involves three primary workflows: transaction creation (which provisions an escrow account and defines release conditions), funding (which handles buyer payment initiation and confirmation), and release (which triggers disbursement when conditions are met).

Each workflow is supported by webhook events so your platform can react to state changes asynchronously. PayKeeper provides sandbox access, versioned API documentation, and integration support to get teams live without lengthy enterprise procurement cycles. Most marketplace integrations reach a testable state within a few weeks.

Yes. PayKeeper, Inc. is a licensed escrow company (NMLS 2401821) operating under applicable state licensing requirements. All services are subject to KYB/KYC, AML, OFAC, and applicable international sanctions screening. This means that when your marketplace integrates PayKeeper, your buyers and sellers are transacting through a regulated, auditable escrow infrastructure — not a trust-and-hold workaround. This distinction matters to banking partners, institutional buyers, and any marketplace operating in a regulated category.

Platform fee structures are configured in PayKeeper at the marketplace level. When a transaction’s escrow is released, PayKeeper automatically executes the defined split: your platform commission is carved out and disbursed to your designated account, the seller receives their net amount, and any additional payees (sub-vendors, referral partners, tax remittances) receive their shares — all in a single disbursement event.

This eliminates the need for a separate reconciliation or manual fee calculation process. Every split is logged and included in transaction-level reporting, making platform revenue reconciliation straightforward at month-end.

PayKeeper’s infrastructure is built to scale with marketplace transaction volumes. The API is designed for programmatic, high-frequency transaction creation — each transaction provisioning its own escrow account without requiring manual setup. Webhook-driven state management means your platform handles volume asynchronously rather than polling for status.

For marketplaces with large or institutionally sensitive transactions, PayKeeper also supports batch processing, multi-party waterfall disbursements, and custom reporting cadences. Reach out to discuss specific throughput requirements or integration architecture for your platform’s scale.

PayKeeper is particularly well-suited for marketplaces where transaction values are meaningful enough that payment trust is a barrier to conversion — and where fraud, non-delivery, or disputes carry real reputational or financial risk. This includes:

• B2B goods and services marketplaces — where invoice amounts are large and payment risk is a procurement concern
• Freelance and professional services platforms — where milestone-based payment release aligns with how work is actually delivered
• Equipment, machinery, and high-value goods marketplaces — where inspection windows and delivery confirmation before payment release are standard practice
• Real estate and construction procurement platforms — where fund control and lien risk management require structured disbursement
• Import/export and cross-border trade platforms — where payment terms between international counterparties benefit from neutral third-party escrow

If your marketplace operates in a category where the cost of payment fraud or dispute resolution is material to your unit economics, PayKeeper’s API integration is worth a conversation.