How Payments Work in LiquidTrust
LiquidTrust transactions follow a clear, two-stage process that ensures verification, compliance checks, and predictable delivery for both the Payor and the Payee.
The flow varies depending on whether you use Simple Pay for quick, arrears-based payments or Protected Pay for secure, milestone-based payments.
The Two-Stage Transaction Flow
All LiquidTrust payments move through your secure LiquidTrust Wallet in two distinct stages:
- Stage 1: Funding the Wallet
- The funds move from the Payor's bank account into their secure LiquidTrust Wallet.
- This step confirms fund availability and completes necessary compliance checks.
- Stage 2: Payout to Payee
- Once the payment is approved (either before funding with Simple Pay or upon release with Protected Pay), the funds move from the Payor's Wallet to the Payee's Wallet, then to the Payee's bank account upon Withdrawal.
Payment Types and How They Differ
The timing and approval process depend entirely on the LiquidTrust Product you choose:
1. Simple Pay
| Feature | Description | Use Case |
| Payment Flow | Payment is initiated from the Payor (or requested by Payee) and immediately approved to transfer to the Payee's Wallet, then to their bank upon Withdrawal. | Paying an invoice, settling a debt, or paying a trusted contractor in arrears (after work is complete). |
| Protection | Basic compliance and security checks are performed. | Best for recurring payments with established contacts. |
2. Protected Pay (Micro Escrow™)
| Feature | Description | Use Case |
| Payment Flow | Funds are held in Micro Escrow™ (via the Payor's Wallet) until the Payee confirms delivery and the Payor actively releases the payment. | High-value contracts, first-time transactions, or projects where funds must be secured in advance of the deliverable. |
| Protection | Both the Payor and the Payee agree to a specific set of release requirements, guaranteeing funds are held until conditions are met. | Provides secure, Micro Escrow™ protection for both parties. |
Understanding this two-stage flow is essential for predictable money movement. It ensures that funds are verified and secured before being processed, reducing risk for both the Payor and the Payee. The choice between Simple Pay and Protected Pay gives you the flexibility to match the security level to the risk of the specific transaction.