How Escrow Payment Works for Home Repairs (and Why It Matters)

Paying a tradesperson in advance is one of the most common sources of consumer complaints in the UK. An estimated £4bn is lost to cowboy builders and contractors every year. Escrow payment solves this — but most people have never heard of it in the context of home repairs.

What is escrow payment?

Escrow is a financial arrangement where a neutral third party holds payment on behalf of both a buyer and a seller. The funds are only released to the seller once the agreed conditions have been met.

In the context of home repairs, it works like this:

1. You agree a fixed price with a tradesperson.
2. You pay into escrow — your money is held by a regulated payment processor (Stripe, in EzeAla's case), not by the tradesperson and not by EzeAla.
3. The work is completed.
4. You review the work and sign off.
5. The payment is released to the tradesperson within 48 hours.

If you're not satisfied, you raise a dispute before signing off. The money stays locked until the dispute is resolved.

Why does this matter for homeowners and landlords?

Without escrow, you have two unpleasant options:

• Pay upfront: You have no leverage if the work is poor or incomplete.
• Pay on completion: Most tradespeople won't accept this, particularly for jobs requiring materials.

Escrow is a middle ground that both parties can trust. The tradesperson knows the money is there — it's confirmed in escrow before they start. You know the money can't be claimed until you're satisfied. Nobody has to trust anyone they just met.

Is Stripe safe to hold my money?

Yes. Stripe is a global payments infrastructure company regulated by the FCA in the UK and used by millions of businesses including Amazon, Shopify, and Deliveroo. Stripe holds escrow funds in ring-fenced accounts, meaning the money is protected even if EzeAla or the tradesperson were to become insolvent.

EzeAla Trades does not hold your money — Stripe does. EzeAla instructs Stripe to release funds once you've signed off the job.

What happens if there is a dispute?

If you raise a dispute before signing off:

1. Funds remain locked in escrow.
2. The EzeAla disputes team reviews the job — looking at the original quote, photos, communications, and completion evidence.
3. We make a determination within 5 working days.
4. Funds are either released to the tradesperson, returned to you, or split (for partial completion cases).

This is a significant improvement over the traditional route (small claims court), which can take months and costs additional fees.

Does escrow delay payment to tradespeople?

Only by 48 hours. Once you sign off the job as complete, funds are released automatically by Stripe within 48 hours — no chasing, no invoicing, no waiting for bank transfers.

For repeat customers or high-rated tradespeople (Elite Pro tier), EzeAla can reduce this window further. For large, multi-stage jobs, milestone-based escrow releases are available — so a tradesperson gets paid after completing each phase of a project, not just at the end.

Why don't all trades platforms use escrow?

Processing payments in escrow requires a regulated payment infrastructure and a dispute process to back it up. Most directory-style platforms (Checkatrade, Rated People, MyBuilder) are lead-generation businesses — they connect you with a tradesperson and then their job is done. What happens after is between you and the contractor.

EzeAla Trades is end-to-end: we manage the match, the quote, the payment, and the sign-off. Escrow is only possible because we own the full transaction flow.