Marketpay Checkout

FAQ – Marketpay Checkout

 

What is Marketpay Checkout?

Marketpay Checkout is solution jointly developed by SOCIALPAY and TRANSFERZERO. It is based on Marketpay, a software management platform from SOCIALPAY, and the payment services of TRANSFERZERO.

Marketpay Checkout enables an adequate control over transactions and payment flows completed by users within the client’s platform. It allows the client to process payments via credit card or wire transfer, while holding in his capacity of Payment Entity and Escrow Agent, the funds of transactions until the release of these funds based on the application of escrow logic rules. These escrow payment rules shall be pre-defined and agreed between the seller and the buyer prior to the transaction.

 

What is an escrow payment?

 An escrow payment is a mechanism to secure the sale of an article or service for both seller and buyer. This is achieved by adding a step into the sale process by placing the funds of the transaction into a third-party account, called escrow account, rather than buyer paying out the funds directly to the seller.

The use of an escrow account (also called escrow wallet) creates a completely secure form of payment. The buyer’s payment is placed on a third party deposit account (escrow account) giving the seller the security that the money is real and that he or she shall be paid out when delivering the purchased items or services as agreed with the buyer.

The money on the escrow account is only transferred to the seller’s account when the buyer receives the purchased product/service and confirms that everything is correct. In case there is a defect or the product is not the correct one, the buyer would recover the money and the seller, the product. This process via an escrow account eliminates any risk in online purchases and sales.

 

How does Marketpay Checkout work?

  1. Buyer and Seller agree on a deal (product /service)
  2. The marketplace calls Marketpay Checkout to execute Buyer’s payment and account to a user’s wallet. Money is held in a escrow bank account
  3. Seller is notified of the payment and delivers the product or service to Buyer.
  4. Buyer gets the deal. The marketplace shall offers a dispute procedure to both sides.
  5. The marketplace calls Marketpay Checkout to release the escrow deposit: (1) Pay-out to seller or (2) Refund to Buyer

 

Why is it required to use a third party deposit account?

Marketplaces and 2-sided platforms ARE NOT ALLOWED by the European regulations to hold funds on behalf of both the payee and payor. The reasons being:

PSD2 regulation (effective January 2018) reinforces this policy. Any marketplace must connect to a Service Provider Escrow Solution, such as Marketpay Checkout, to keep funds in an escrow account.

Escrow payment rules, the responsibilities of the marketplace/2-sided platform and of Marketpay Checkout, and who to contact in case of disputes

The contact point for any issues with the services offered by the marketplace/2-sided platform is the platform itself. This also applies to the escrow payment services.

Marketpay Checkout takes care of the payments and the management of the escrow wallets following the business or escrow rules set by the platform client and agreed by its users. In addition, Marketpay Checkout ensures that the payments comply with current regulations, especially Know Your Customer (KYC) and Anti-Money Laundry (AML) regulations.

In case of any dispute, the point of contact is the marketplace/2-sided platform.

 

Why am I required to identify myself with my mobile phone?

To protect you and the transaction, Marketpay Checkout follows KYC regulation requiring the identification of the parties involved with to the following scenarios in mind:

 

Legal notice – Marketpay Checkout

  1. Services provided by Marketpay Checkout

Marketpay Checkout is solution jointly developed by SOCIALPAY and TRANSFERZERO. It is based on Marketpay, a software management platform from SOCIALPAY, and the payment services of TRANSFERZERO.

Marketpay Checkout enables an adequate control over transactions and payment flows completed by users within the client’s platform. It allows the client to process payments via credit card or wire transfer, while holding in his capacity of Payment Entity and Escrow Agent, the funds of transactions until the release of these funds based on the application of escrow logic rules. These escrow payment rules shall be pre-defined and agreed between the seller and the buyer prior to the transaction.

SOCIALPAY S.L. is a limited liability company incorporated in Spain, with registered offices in Barcelona, Carrer de la Llacuna 161, listed on the Barcelona Trade and Company Register with VAT B-66766700. SOCIALPAY owns Marketpay, an escrow wallet and payments compliance management platform.

TRANSFERZERO MONEY TRANSFER ENTIDAD DE PAGO S.A. is a public limited company incorporated in Spain with registered offices in Las Rozas, Calle Chile nº 4, Madrid 28290, registered as a European Union payment services provider at the Banco de España with number 6854, and listed on the Madrid Trade and Company Register with VAT A-86441011.

  1. Marketpay Checkout escrow payments and the escrow logic rules

An escrow payment is a mechanism to secure the sale of an article or service for both seller and buyer. This is achieved by adding a step into the sale process by placing the funds of the transaction into a third-party account, called escrow account, rather than buyer paying out the funds directly to the seller

The use of Marketpay Checkout and its escrow accounts creates a completely secure form of payment. The buyer’s payment is placed on a third party deposit account (escrow account) giving the seller the security that the money is real and that he or she shall be paid out when delivering the purchased items or services as agreed with the buyer.

The money on the escrow account is only transferred to the seller’s account when the buyer receives the purchased product/service and confirms that everything is correct. In case there is a defect or the product is not the correct one, the buyer would recover the money and the seller, the product. This process via an escrow account eliminates any risk in online purchases and sales

  1. Escrow logic rules and contact point in case of disputes

Marketpay Checkout takes care of the payments and the management of the escrow wallets following the business or escrow rules set by the platform client and agreed by its users. In addition, Marketpay Checkout ensures that the payments comply with current regulations, especially Know Your Customer (KYC) and Anti-Money Laundry (AML) regulations. On that end, all parties shall be identified through their mobile phone number.

In case of any dispute, the point of contact is the marketplace/2-sided platform. Socialpay and TransferZero are merely the service suppliers.

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