How Escrow Lite Works

1. Buyer and Seller Agree to Terms

The buyer and seller begin by agreeing on the details of the transaction. This includes the item or service being sold, the purchase price, currency, inspection period, delivery method, payment requirements, and any special conditions.

For digital products, the terms may include login transfer requirements, source code delivery, domain transfer procedures, application ownership transfer, license information, access credentials, hosting access, or other digital assets included in the transaction.

For physical goods, the terms may include the shipping method, shipping costs, expected delivery period, inspection period, item condition, quantity, and which party is responsible for shipping fees.

For services, the parties may define the scope of work, expected deliverables, completion requirements, deadlines, and approval criteria.

Once both parties accept the transaction terms, the transaction can proceed to payment.

2. Buyer Submits Payment to Escrow Lite

After the terms have been accepted, the buyer submits the agreed payment to Escrow Lite using one of the available payment methods for the transaction.

Escrow Lite records the payment and updates the transaction status so both parties can confirm that the payment has been received before the seller delivers the goods or begins the agreed service.

The payment remains with Escrow Lite while the seller completes their delivery obligations and the buyer reviews the goods or services.

This process provides the seller with confirmation that the buyer has submitted payment while giving the buyer an opportunity to inspect and approve the transaction before the funds are released.

3. Seller Delivers Goods or Service to Buyer

Once the buyer's payment has been received by Escrow Lite, the seller proceeds with delivery according to the agreed transaction terms.

For physical goods, the seller ships or hands over the item using the agreed delivery method.

For services, the seller begins or completes the agreed work and provides the required deliverables to the buyer.

For digital products, the seller transfers the agreed files, access credentials, ownership rights, accounts, source code, licenses, domains, websites, applications, or other digital assets.

The purpose of this stage is to provide the buyer with the goods or services they purchased so they can inspect, test, and verify that everything matches the original agreement.

4. Buyer Approves Goods or Services

After delivery, the buyer reviews the goods or services during the agreed inspection period.

For digital products such as domains, software, games, mobile applications, websites, source code, digital licenses, intellectual property assets, and other online assets, the buyer can verify that the delivered product matches the agreed description and transaction terms.

Where testing is required, Escrow Lite can support a sandbox-style review process. The sandbox functions as a virtual testing environment where the buyer can inspect or test the product before approving the transaction.

Depending on the product, testing environments may include:

• Windows
• macOS
• Linux
• iOS
• Android

For software, games, mobile applications, and websites, the buyer may use the testing environment to check functionality, performance, files, features, access credentials, and whether the delivered product matches the agreed specifications.

For source code, the buyer may review project files, run the application, test functionality, inspect included components, and confirm that the code or build operates as expected.

For domains and websites, the buyer may confirm domain ownership transfer, registrar access, DNS access, hosting access, website files, administrative credentials, databases, and any other assets included in the transaction.

For digital accounts or profiles, where permitted by the applicable platform and transaction terms, the buyer may verify access, recovery settings, ownership details, account information, and whether the delivered asset matches the agreed description.

For physical goods, the buyer can inspect the delivered item to confirm its condition, quantity, authenticity, specifications, and compliance with the transaction agreement.

For services, the buyer can review the completed work and confirm that the agreed deliverables and requirements have been satisfied.

If everything is correct, the buyer approves the transaction.

If the buyer identifies a problem, they can raise an issue during the inspection period before the payment is released to the seller.

5. Escrow Lite Releases Payment to Seller

Once the buyer approves the delivered goods or services and the transaction requirements have been satisfied, Escrow Lite releases the payment to the seller.

The seller receives the proceeds according to the selected disbursement method.

After the payment has been released, the transaction is marked as completed, providing both parties with a clear record of the agreement, payment submission, delivery, buyer approval, and final payment release.