We are looking for information on configuring store to release a payment when an item is received and confirmed. Similar to most multi-vendor or customer to customer models. Where "customer A" sells and ships an item to "customer B". Upon receiving the item and confirming the item is as described, "customer B" accepts the item. Once that happens, payment is released to "customer A".
While this seems to be a common type of transaction, we're finding it difficult to get information on configuring this type of system on the backend. Any information that can lead us in the right direction will be helpful.
Magento default doesn't have such functionality ready. You will have to get it custom develop according to your requirements. I am not sure what multi-vendor extension you are using but its a good to reach out to any Magento agency and discuss your requirements.