How SAFEFUNDS Works - More Detail

View Diagram                              Optional Item Verification Service

Safefunds is easy and intuitive to use, absolutely free to buyers and inexpensive to sellers. All members can be either buyers or sellers and either can start the transaction.

The transaction is originated by either being entered from scratch or by being copied in from a prototype transaction. The prototypes are time savers for repetitive and similar transactions. The exact details of the offer are included. When complete an email is sent to the trading partner and the transaction appears in his list in red signifying a response is required.

The buyer and seller may continue to negotiate until they both agree exactly to the terms and conditions of the transaction. Because the transaction is specified in detail, the possibility of the buyer not receiving exactly what he expects is eliminated.

When buyer and seller both agree, the transaction is set and funds are reserved from the buyer’s account in favor of the seller. In the case where the buyer does not have a sufficient credit balance in his Safefunds account, the transaction is put into a pending status until the buyer funds the transaction. Funds may be paid by electronic banking transfer, wire transfer, or paper check.

With the transaction funded, the seller is notified to deliver the goods purchased or render the service agreed upon. When the buyer is satisfied that the conditions for payment has been met service, the buyer tells Safefunds that the transaction is complete. The seller may also request the payment whenever the conditions of the agreement are satisfied.

Members may withdraw available funds from their account at anytime. There is no requirement for any specific balance to be kept. Safefunds does not set any conditions for the transaction.The buyer and seller set their own terms for all aspects of the transaction. Funds requested may be directly transferred to the member’s account via the electronic banking system in the U.S., via international wire outside the U.S., or via regular check anywhere.

What if the buyer believes the goods or services were misrepresented? The buyer may initiate a dispute. A dispute freezes the transaction funds while buyer and seller negotiate a solution. The solution may include a price adjustment, a replacement or exchange, or a complete refund. By joining Safefunds, all members agree to negotiate in good faith.

If buyer and seller cannot agree on a resolution, Safefunds examines the positions of the parties and arbitrates the solution. Safefunds will utilize all necessary means to reach a solution satisfactory to both parties including expert inspection and expert valuation. In every case either the transaction is completed at a fair price or, in the case of goods, the items are returned to the seller and the funds to the buyer.