LIPA NA ESCROW
What It Is And How It Can Help Grow Your Online Business
A seller’s guide by Escrow Kenyaᵀᴹ
What is “Lipa Na Escrow”?
A safer way for buyers to pay you with confidence in digital marketplaces.
Lipa Na Escrow, a service by Escrow Kenya, holds a buyer’s payment in trust until they receive the goods they purchase from your online business. It takes care of trust issues, enabling buyers to buy from you with confidence, and consequently helps your business sell more online.
Why Accept Lipa na Escrow?
Because trust issues should not come between you and making a sale.
→ Eliminate trust issues
Buyers can pay you with confidence knowing that their money is safe.
→ Sell more online
Skeptical customers always forego the purchase unless they are guaranteed against getting conned.
→ Get buyers to commit
And do away with the expenses associated with dummy cash-on-delivery orders.
Who holds my payment?
While temporarily unavailable to both you and the buyer, your payment will be held in trust by Escrow Solutions Kenya Limited, the leading provider of internet escrow services in Kenya.
You can always view the funds in your escrow account balance at any time by logging in to your escrow account at www.escrowkenya.com.
What can I Sell With Lipa Na Escrow?
Any item whose delivery is verifiable.
→ Non-perishable physical goods
From electronics to clothing and household goods, Lipa Na Escrow covers most physical items.
→ Motor vehicles
Require buyers to deposit your full payment in escrow before commencing the transfer of ownership.
How it works
For your convenience, Lipa Na Escrow is already integrated into this marketplace.
If you do not have an escrow account linked to the email address or phone number you use on this marketplace, an account will be created for you automatically when the first buyer places an order.
Tip
Create your free escrow account here using your business’s customer support email and phone number so that Lipa Na Escrow orders are automatically matched to your escrow account.
The payment process
→ The buyer contacts you to confirm that the item is available and agree on a suitable delivery date and other terms and conditions of the sale.
→ The Buyer clicks the “Lipa Na Escrow” button and logs in with their escrow account.
→ The Buyer fills out the order details including the due date for delivery, delivery charges, and any instructions to you.
→ The Buyer deposits payment into escrow. You will receive an SMS and email confirmation at this point, advising you to proceed with delivery. You will also see the money in your escrow account balance but you will not be able to access the funds immediately.
Provided no issues arise, Escrow Kenya will release the funds to you when the buyer approves the order or 3 days after the set due date for delivery, whichever comes earlier.
What if the buyer says they did not receive the item?
To protect you, all buyer complaints are investigated while the money is in escrow. Be sure to retain verifiable proof of delivery, including a copy of the shipping receipt and tracking information. This is used to confirm that delivery was done and deny fraudulent buyer claims.
Tip
Always keep a record of your written communication with the buyer, such as WhatsApp, email and SMS messages. These come handy when resolving disputes.
What is covered?
→ Item not received
A buyer is eligible for a full refund if they do not receive the item. You can always cancel an order if you cannot fulfill it.
→ Item significantly not as described
Buyers must return the item to you in order to receive a full refund. Alternatively, you can agree on a suitable partial refund percentage.
What are the charges?
The service fee is 3% of the price for general goods with a minimum fee of Ksh 200. The fee may be paid by the buyer, seller or shared equally. The system lets you choose.
Tip
If 3% of the price is less than 200, then the service fee is a flat fee of Ksh 200. Simply put, the service fee for transactions worth Ksh 6,600 or less is fixed at Ksh 200.
Ready to get started?
Be one step ahead by creating your free escrow account here.
Tip
Your escrow account is independent of your user profile on the digital marketplace that integrates our escrow payment solution. Create your free account now so that you are all set to Lipa Na Escrow.
We hope you found this guide helpful and look forward to working with you. For more information about Escrow Kenya, visit our website. Connect with us on Facebook, Instagram and Twitter or watch tutorial videos on our YouTube channel.