All good points to ponder.  Let me try to address a few.

This is a common problem with lots of service type of business...abstracting, judgment search, appraisals, background search, etc. All have the common problem of releasing the work product to the client and then they are 100% at the mercy of the client paying sometime in the future. This concept puts an intermediary in the middle that allows the buffer needed to satisfy the client and the service provider. Somewhat like pay-pal. However, pay-pal is instant transfer and this system would need a delay period.

I was just trying to creat a payment system that would allow the abstractor to submit work and have some assurance that they would be paid.  The client will get to to see and approve the work, but not get enough of the image to be able to reuse it with paying (or agreeing to pay for it).  Kind of like the Pay-Pal type system, but instead of instant payment from their account, a delay long enough to satisfy their "float" needs.  They will never prepay or instant pay for it, unless that is the terms you agree to witht he client.  And some companies might agree to that if a discount is offered.  But the service provider and client work that out among themselves.

As far as the escrow question goes - your right, an escrow could be abused by the intermediary providor.  Another way to approach that may be to leave the payment in the clients accounts but set up an autopay on the agreed terms.  Not as much assurance for the service provider, but maybe a compromise. Lots of ways to skin that cat, but it does have to be something that both agree to. 

Your right, it may never work.  If service providers cannot ban together and urge customers to a better payment system, then they (we) will continue to be abused by these companies and we will still complain about it on message boards like this. 

I am very diligent on setting up a new company.  I spend a lot of time, check references, review sites and message boards, ask colleagues and set reasonable limits.  However, it's not just the new companies that are stiffing us.  We have seen many of the old line "trusted" companies that have slowed or stopped payment or gone belly up.  You think they are good, until you find out your not!!!!

Thanks for the input.

Scott Aduddell