What is a Trust Payment?

Trust Pay is a secure and efficient mechanism that safeguards both payer and payee during transactions involving goods or services. It operates as a micro-escrow system, ensuring that funds are only released when predetermined conditions are met.

Here's how it works:

1. Agreement: The payer and payee establish clear fund release conditions upfront. For example, "10,000 USD to be released once 1,000 widgets are received in our warehouse."
2. Fund Hold: The payer's funds are securely held by Trust Pay, in a virtual account dedicated to that transaction.
3. Condition Verification: Once both parties agree the conditions are met (e.g., goods received), the funds are disbursed to the payee.

A micro-escrow payment example:

Imagine a freelance graphic designer agreeing to create a logo for a small business. They might use Trust Pay as follows:

1. The freelance graphic designer or the small business can initiate the Trust Pay, and send it to the other party for their review and agreement.
2. Through LiquidTrust, the Trust Pay conditions are set and agreed to: "Funds released upon delivery of final logo files and client approval."
3. At the time of agreement, $2,000 will be debited from the small business in to a dedicated Trust Pay account.
4. The designer creates and delivers the logo, and notifies the business owner through LiquidTrust they have met the conditions of the Trust Pay.
5. The business owner agrees, and approves the work in LiqiudTrust.
6. Trust Pay releases the $2,000 to the designer.

This micro-escrow system protects both parties: the business owner is assured they'll receive the agreed-upon work before payment, and the designer is guaranteed payment upon satisfactory completion.