Abstract: A secure digital escrow account transaction system and method provides that when a customer pays for retail goods or services by credit card, only the retailer's charges for goods and services are transferred from the customer's bank to the retailer's account. The customer sales tax payments in connection with those purchases however are transferred from the customer's bank into an impound account managed by, in one embodiment, a system linkage. The system linkage could be managed by an outside company which, at the end of each payment period, is responsible for transferring the appropriate amount to the State taxing authority with the appropriate forms and reports required by the State on behalf of the retailer.