What is Protected Pay?

Protected Pay uses our Micro Escrow™ technology — a built-in feature that temporarily that holds and releases funds based on predefined conditions.

It’s designed for goods or services where both sides want added security and transparency before releasing payment.

How Protected Pay Works

1. Set the Agreement

   The Payor and Payee agree on the payment conditions in advance.

   Example: “$5,000 USD to be released once the final logo design files are delivered and approved.”

2. Hold the Funds Securely

   The Payor’s funds are placed in a dedicated Micro Escrow™ account, held by LiquidTrust on behalf of both parties until the agreed conditions are met.

   Funds remain protected until the agreed-upon conditions are met.

3. Verify and Release

   Once both parties confirm that the requirements have been satisfied (for example, services completed or deliverables accepted), LiquidTrust releases the funds to the Payee.

Example: Protected Pay in Action

Scenario:

A U.S. small business Buyer (Payor) places a $40,000 USD order with an overseas Seller (Payee).

1. Either party initiates a Protected Pay transaction in LiquidTrust.
2. Both agree to the condition: “Funds released upon delivery with required shipping and customs documents (bill of lading, packing list, and commercial invoice).”
3. The Buyer transfers $40,000 USD into a secure Micro Escrow™ account.
4. The Seller ships the goods and uploads the delivery documents in LiquidTrust to request release of the funds.
5. The Buyer reviews and approves once all documents are verified.
6. Funds are released immediately to the Seller.

✅ Both parties are protected:

• Payor: Confirms that goods and documentation meet the agreed terms before payment.
• Payee: Is guaranteed full payment once delivery conditions are met.

Why Use Protected Pay

• Mutual Protection: Funds are only released when both sides agree.
• Reduced Risk: Helps prevent disputes, fraud, or chargebacks.
• Full Transparency: Each step — agreement, hold, and release — is tracked in LiquidTrust.
• Flexible Conditions: Works for milestones, deliverables, or service-based payments.

When to Use Protected Pay

Protected Pay is ideal when you want extra assurance before releasing funds. Common examples include:

• High-value transactions that require confirmation before funds are released
• First-time business relationships where trust is still being established
• Higher-risk deals involving unfamiliar suppliers, new markets, or large order sizes
• Milestone-based projects tied to specific deliverables or stages
• International transactions requiring customs or delivery documentation
• Any agreement where work, goods, or terms must be verified before releasing payment