Crypto escrow, in the specific
Updated August 20, 2026 · Reviewed by Kirill Novikov, FlipGift founder
"Escrow" is the most abused word in crypto commerce, so this page answers the only three questions that matter: who holds the money, what event releases it, and what happens when the two sides disagree.
Who holds it
FlipGift does. Your stablecoin deposit sits as a balance in your account; the moment a deal is accepted, the discounted price moves out of that balance into escrow — not to the seller. This is custodial escrow, not a smart contract, and calling it anything else would be marketing: the thing being escrowed is an order at a retail store, and no contract on chain can see whether a parcel arrived. Someone has to make that call, so we say plainly that it is us, on evidence.
What releases it
| Event | What happens to the money |
|---|---|
| Deal accepted | The discounted price leaves your balance and enters escrow |
| Seller places the order | Nothing moves. They must upload an order screenshot and tracking |
| Parcel delivered, you confirm | Escrow releases the payment to the seller in full |
| Protection window closes with no dispute | Same release, automatically |
| You open a dispute | Nothing releases until arbitration decides |
| Arbitration finds for the buyer | Refund straight out of escrow |
The seller's obligations are enforced, not requested: proof of the order, tracking that matches, and a shipping address that matches the one on the deal. Failing them costs the seller a strike, and strikes remove sellers from the market.
What escrow is not
- It is not a chargeback. It protects against a seller taking money and not shipping. It does not cover you changing your mind about the item — the store's own return policy is what applies there.
- It is not custody of a gift card code. Codes never pass between the two sides, so there is nothing to steal or double-spend.
- It is not anonymity. A dispute is decided on evidence, which means chats, screenshots and tracking are read by a person. What we do and do not ask for →
Why this shape and not on-chain escrow
An on-chain escrow needs an oracle to say "delivered". For a parcel, that oracle is a human reading tracking and photos — which is exactly the role we already perform. Wrapping the same judgement in a contract would add gas and a smart-contract risk without moving a single decision out of human hands. What it would buy, we get another way: the ledger of every deal is auditable, the rules are written down, and the money never sits with the counterparty.
Where the coins fit
Escrow here is funded from a stablecoin balance: USDT, USDC, DAI or PYUSD, deposited from $10, no fee on our side. The whole payment route → · Which network to send on →
Frequently asked questions
Is this a smart contract escrow?
When exactly does the seller get paid?
What happens if we disagree?
Can I get the money back to my own wallet?
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