How does LipaSafe work?
Lipasafe.com reduces the risk of fraud by acting as a trusted third-party that collects, holds, and only disburses funds when both the Buyer and Seller are satisfied with the transaction. The following steps describe a Lipasafe.com transaction:-
- Buyer and seller agree to terms. Either the Buyer or Seller initiates a transaction on Lipasafe. After registering, all parties MUST agree to the terms of the transaction before it can move forward.
- Buyer deposits funds to Lipasafe. The Buyer submits a payment using the approved payment methods into the transaction account. Lipasafe.com verifies the deposit, then the Seller is notified that funds have been secured “In Escrow”.
- Seller delivers product/service to Buyer. Upon payment verification, Lipasafe.com will authorize the Seller to deliver the merchandise to the buyer. Lipasafe.com verifies that the Buyer has received the goods or services.
- Buyer accepts product / service. The Buyer has a set number of days (Inspection Period) to inspect the product / service with the option to accept or reject it. If the product / service is of low quality, the Buyer has the option to reject the transaction and enter the dispute resolution process.
- Lipasafe.com pays the Seller. If the product/service is of good quality, the Buyer will pay the Seller promptly. Lipasafe.com will release the funds to the Seller from the Escrow Account.
Here is a complete flow of the Lipasafe.com process:-
What happens if a buyer or seller rejects the transaction?
Both the buyer and seller have the right to reject a transaction for any valid reason. In case a transaction is rejected, it automatically enters the Dispute Resolution Process which works as follows:-
- Buyer will return the product / service to the seller at their own cost and provide proof of returning the product / service
- The seller will confirm receiving the return and provide proof of the same.
- Lipasafe.com will cross check and refund the buyer the transaction amount less service fees.
You can read more about the Dispute Resolution Process here.
What is the Inspection Period?
The Inspection Period is the number of days it will take to check the product / service or perform due diligence. This period is usually specified at the start of the transaction and MUST be agreed upon beforehand by both the buyer and seller.
What if the buyer receives the product / service and refuses to pay the seller?
Lipasafe.com will automatically release the secured funds to the seller after expiry of the Inspection Period.