Every transaction on Waffy goes through four main stages, starting with the agreement between the parties and ending with the transfer of funds to the seller. The buyer’s payment does not go directly to the seller. Instead, the funds are held in an escrow account managed independently by Waffy.
1. Agree on and document the transaction terms
Both parties agree on the transaction details, including the product or service description, price, and expected execution period. These terms are recorded within the Waffy transaction, giving both parties a clear reference instead of relying on a verbal agreement or scattered messages.
2. Payment and holding the funds in escrow
The buyer pays the transaction amount through Waffy, and the funds are held in a separate escrow account until the agreed conditions are met. This gives the seller confirmation that the funds are available, while giving the buyer peace of mind that the money will not be released before they receive what was agreed upon.
3. Execution and delivery
The seller delivers the product or completes the agreed service. Once Waffy is notified that delivery has been completed, either through the shipping record or the buyer’s confirmation of receipt, the buyer’s inspection period begins. During this period, the buyer can check whether what they received matches the agreed terms.
4. Inspection and release of funds
After the buyer completes the inspection:
- If the buyer is satisfied with the product or service, Waffy releases the funds and transfers them directly to the seller’s bank account.
- If the buyer is not satisfied, they can reject the transaction and escalate the issue. Waffy then reviews the agreed terms and what was actually delivered before making a decision based on the evidence provided by both parties.
- If the buyer takes no action during the inspection period, the transaction is considered complete and the funds are released to the seller.
Why does this process matter?
Each stage serves a specific purpose. Documenting the terms helps prevent disagreements about what was agreed upon, holding the funds protects both parties until their obligations are met, and the inspection period prevents the funds from being released before the buyer has a chance to verify the delivery.
This makes an escrow transaction through Waffy different from a direct bank transfer, which does not provide the same transaction structure and safeguards.