For Direct to Seller payments, funds are released to the merchant from the smart contract once the order status is 'In Transit'. This is when the merchant ships out your parcel, and updates the shipping status.
For Escrow payments, funds are only released to the merchant after the order status is 'Completed'. An order is only 'Completed' 3 working days after you have received your item, and if no disputes are raised. If a dispute is opened, funds will stay in the Smart Contract until the dispute is resolved.
Prior to the above order states, your payment is held in a Smart Contract and will not be released unless the terms are met.