FAQs
Understanding Tridge Pay escrow
Who can use Tridge Pay Escrow?
Any importers and exporters who are having cross border transactions for physical goods under the harmonized system code can make their payment under Tridge Pay Escrow’s protection.
Note that Tridge Pay does not support the service to sanctioned countries.
How safe is Tridge Pay Escrow?
When the buyer makes a payment to Tridge Pay Escrow, the transaction is processed through a virtual bank account under Deutsche Bank Hong Kong. This demonstrates Tridge Pay's adherence to the highest global compliance standards and reflects the strong business credibility of our company.
What are the benefits of Tridge Pay Escrow?
Tridge Pay Escrow minimizes risk for both buyers and suppliers.
- The buyer is assured that the money is only released after the seller has shipped the items. The buyer is also protected against delays as the money release is tied to delivery timelines set during the escrow agreement, mutually decided by both parties.
- The seller is assured that the buyer has the intent and the ability to pay, as the escrow account is funded before they ship the items. The seller is also certain that they will get the funds on shipping the items.
In addition, Tridge Pay verifies the identity and compliance status of the buyer and the seller. For the seller this opens up avenues to reach new customers and allows buyers to trade with new sellers with peace of mind and assurance.
What is the coverage of my payment with Tridge Pay Escrow?
Tridge Pay Escrow typically covers the payment under Cash Against Document (CAD) terms. If your transaction involves a down payment or a balance payment made after receiving and QA of the goods, we recommend processing those payments separately, outside of the Escrow service.
How is Tridge Pay different from a Letter of Credit?
Accessibility: Tridge Pay uses actual transaction records for client risk profiling, providing importers and exporters with greater access compared to traditional Letters of Credit (L/C).
Ease of Use: Unlike L/Cs, which require extensive documentation and a lengthy bank verification process, Tridge Pay offers a streamlined, fully digital onboarding and contracting experience.
Cost Efficiency: Tridge Pay reduces costs by eliminating the multiple fees associated with L/Cs, such as those from issuing, advising, and confirming banks.
How Tridge Pay Escrow is different from other online Escrow?
Tridge Pay is specifically designed for import/export transactions of physical goods, offering a protection process tailored for B2B trades, unlike general online escrows. Our service fees are structured for business transactions, ensuring competitive rates for our customers.
Transaction process
What is the protection that Tridge Pay Escrow provides?
For Buyers, Tridge Pay Escrow ensures timely shipment and allows buyers to claim ownership of goods before payment by releasing funds to the supplier upon confirmation of the original Bill of Lading (B/L).
For Suppliers, Tridge Pay guarantees payment to the supplier upon shipment, as long as the agreed-upon conditions are met.
How can I invite the counterparty?
When creating a transaction, you are required to submit the email address and the mobile phone number of point of contact from the counterparty company. An invitation email of each transaction will be sent to the submitted email address.
Are there any limits on using Tridge Pay Escrow?
Tridge Pay Escrow operates based on the buyer receiving ownership of goods through the handover of the Bill of Lading. Therefore, transactions under Incoterms using ExW and F terms are not supported.
- The following Incoterms are NOT eligible for Tridge Pay:
- ExWorks (ExW)
- Free on Board (FOB)
- Free Carrier (FCA)
- Free Alongside Ship (FAS)
Please note: Domestic transactions (without international shipment) are also not supported by Tridge Pay at this time.
How long does the Tridge Pay Escrow process take?
The duration of the full escrow process depends on user responsiveness and the time required to prepare goods for shipment. However, the general timeline is as follows:
- Business Verification: Once submitted, the evaluation takes 1 to 5 business days. Additional time may be required if incomplete documentation is provided or further information is needed.
- Buyer Payment Verification: Completed within 1 business day (maximum).
- Buyer Confirmation of Shipment: Buyers have 3 business days to confirm the proof of shipment.
- Payment Release to Supplier: Processed within 1 business day (maximum) after buyer confirmation.
- Dispute Resolution: Varies based on individual cases.
How can I join the transaction when invited?
To proceed with the proposed transaction, you must create a Tridge Pay account and click Agree to confirm the terms.
How can I change my Transaction details?
Before the invited party agrees, you can edit the details of the transaction proposal anytime. However, once the agreement has been made, it can not be revised. If you want a different terms of the Escrow transaction, it is recommended to create new transaction and invite the counterparty again.
When does the fund get released?
Funds in escrow are released only when both the buyer and the supplier agree to disbursement to the designated party.
Do I need to make a payment of 100% of the transaction for the fund on Escrow?
The duration of the full escrow process depends on user responsiveness and the time required to prepare goods for shipment. However, the general timeline is as follows:
- 100% Payment: The buyer funds 100% of the agreed transaction amount to activate the escrow contract. The full amount is released to the supplier upon receipt of proof of shipment.
- Split Payment: The buyer funds a specified portion (minimum 10%, up to 90%) of the agreed transaction amount to activate the escrow contract. Once the supplier provides a copy of the Bill of Lading (B/L), the buyer pays the remaining balance into escrow. Upon the supplier delivering the original B/L to the buyer and the buyer confirming receipt, 100% of the funds are released to the supplier.
- Please note: Airway bills cannot be used for split payments.
What is proof of shipment?
Proof of shipment can be provided by the supplier as follows:
- Original Bill of Lading: Buyer makes full deposit in advance. 100% of the fund to be released upon buyer’r receipt of the original Bill of Lading. Physical document of the bill of lading should be dispatched to buyer’s address by the due date.
- Copy of Bill of Lading + Original Bill of Lading: Buyer makes partial deposit in advance and makes remaining payment upon cofiming the copy of Bill of Lading. 100% of the fund to be released upon buyer’r receipt of the original Bill of Lading. Physical document of the bill of lading should be dispatched to buyer’s address by the due date.
- Air Waybill: Buyer makes full deposit in advance. 100% of the fund to be released upon buyer’r receipt of the Air Waybill.
As the Bill of Lading is the trigger point for release of the fund, Incoterm which does not enable the supplier to acquire Bill of Lading at the origination port is not allowed to make Tridge Pay transaction.
How does Tridge Pay validate each party?
When you choose to be validated for our Escrow Services, our Compliance team will be notified to begin the review process.
This review requires you to provide company and individual information (i.e. Account Owner or Ultimate Beneficial Owner) along with relevant documents for our Know Your Business (KYB) verification. Our analysts may contact you during the review for additional information to better understand your business.
The review process may take up to 5 business days but could take longer if more information or documents are needed. Once the review is complete, your company will be validated, allowing you to proceed to the next step.
How can the buyer and the supplier cancel the transaction?
Once the transaction funds are deposited into the Escrow account, the agreement is irrevocable. Each party must adhere to the terms outlined in the Tridge Pay Escrow contract.
If both the buyer and supplier agree to cancel the transaction, they can contact cs@pay.tridge.com to request a refund of the funds to the buyer.
Please note that the transaction charge is non-refundable.
When does the refund happen to the Buyer?
- When the supplier fails to provide proof of shipment by the specified due date.
- When the supplier does not respond to a dispute initiated by the buyer within the 5-day response period.
Business verification (KYB)
What is required to verify my business?
A variety of items and documentation will be requested to verify your company and its representatives.
For Your Company, please provide the following documents (or their equivalents in your jurisdiction):
- Certificate of Incorporation
- Memorandum and Articles of Association
- Company Search Report or Government Registry Extract
- Shareholding Chart
For Individuals (such as the Ultimate Beneficial Owner or Account Owners), the following documents are generally required:
- ID, passport, or any government-issued photo ID
- Proof of address
Please note that additional documents may be requested by our analysts based on your specific circumstances.
Why was my business verification rejected?
There may be various reasons for a review rejection. During the review process, our analysts may contact you for additional information or documents related to your company and business.
Please respond to these requests promptly to ensure a smooth review process.
What is proof of address for an individual?
Please provide the residential addresses of the relevant individuals. Acceptable proof of residential address may include utility bills, bank statements, credit card statements, or telecom/internet statements.
If required, please ensure that the proof of residence is valid and issued within the last 6 months.
What is a valid utility bill?
Utility bills can include invoices from public utilities such as water, electricity, or gas. Please ensure that these bills are dated within the last 6 months.
For additional options for proof of residential address, please refer to the information provided above.
What is proof of address for a company?
Proof of address for a company refers to the registered address, typically filed during incorporation or with a business registration. This can usually be verified by providing a company search report or business registry extract.
What is a beneficial owner of a company? Why do I have to submit such information?
The beneficial owner is any natural person who holds 25% or more of the interest or shares in your company. We require information about these individuals to comply with Hong Kong laws and regulations as a licensed Money Service Operator.
In addition to identifying the beneficial owner, we may also request a shareholding or organizational chart to clarify the ownership structure of your company.
What is Memorandum and articles of association? Why do I have to submit such information?
This document, often referred to as the Articles of association in some jurisdictions, is a formative document created during a company's incorporation.
Essentially, it serves as the company’s constitution, outlining various aspects such as the company’s scope, powers, and objectives. It also details the roles and responsibilities of directors, the operation of shares, and information about the founding shareholders.
What is a Company registry report? Why do I have to submit such information?
A Company Registry Report is a document summarizing essential company information, including incorporation details, a list of directors, registered addresses, and shareholders. Most jurisdictions issue these documents through a government body, such as the Company Registry or its equivalent.
Examples of where to obtain such documents include:
- NDA1 or ICRIS for Hong Kong
- ACRA Report for Singapore
- Companies House for the UK
- MCA for India
- SSM for Malaysia
- DART for Korea
Can I submit a screenshot of a webpage?
Please provide the full URL to your company’s main homepage. If your company does not have a website, kindly include a comprehensive business description in the relevant sections during the KYC verification process.
What if I am not a beneficial owner but have been asked to submit an Escrow transaction?
Please ensure that you are the Account Owner or an authorized representative of your company before submitting or creating an escrow transaction.
Note: We will request additional proof of your authority during the KYC process.
Dispute
What is the dispute process under Tridge Pay Escrow?
Our dispute process is designed to facilitate fair and efficient resolution of conflicts arising from transactions. It consists of the following key steps:
Step 1: Negotiation Period
- Tridge Pay uses actual transaction records for client risk profiling, providing importers and exporters with greater access compared to traditional Letters of Credit (L/C).
Step 2: Arbitration under the International Chamber of Commerce (“ICC”)
- If no resolution is reached by the end of the negotiation period, the case will be escalated to external arbitration. The parties can engage a third-party arbitrator, with the International Chamber of Commerce (“ICC”) Arbitration center being the designated arbitrator as per the Escrow Agreement. Funds held under the escrow agreement will remain in escrow until the arbitration outcome is determined.
Step 3: Submit Resolution to Tridge Pay
- Upon reaching an agreement, parties submit the resolution to Tridge Pay, which will release the funds after deducting the service charge.
What happens if the Buyer is unsatisfied with the goods received?
The quality dispute regarding the transaction is separate from the protection coverage provided by Tridge Pay Escrow.
Once the buyer has received the original bill of lading and has agreed to release payment to the supplier, the transaction and the escrow contract are considered complete.
However, if the goods shipped to the buyer significantly differ from the contract terms, specifically in terms of quantity and appearance, this may indicate fraudulent activity by the supplier.
In such cases, the buyer should directly contact our customer support at cs@pay.tridge.com, and we will assist you through the arbitration process.
What if the Buyer does not make the remaining payment on Escrow after receiving a copy of the Bill of Lading?
If the buyer fails to pay the remaining escrow funds after receiving a copy of the Bill of Lading, this is considered a breach of contract, and the supplier may submit a dispute request.
What if there is a disagreement during the transaction? What is the dispute resolution process?
Disagreements can occur in the following situations:
- The buyer refuses to agree to release payment to the supplier after receiving proof of shipment.
- The buyer fails to make the remaining payment to the escrow account under split payment terms.
- The buyer reports to Tridge Pay that the goods shipped are fraudulent after payment has been released to the supplier.
In each case of disagreement, Tridge Pay will assist both parties in reaching a resolution through the standard arbitration process with the designated arbitrator.
If both parties agree to appoint a different arbitrator to resolve the dispute, Tridge Pay will support such change.
Upon submission of the resolution, whether achieved through direct negotiation or external arbitration, Tridge Pay will release the funds accordingly to the parties.
What is the arbitration process? Who should be responsible for arbitration?
Please refer to the arbitration process outlined here:
If there is no resolution by the end of the negotiation period, then the case will be automatically escalated for resolution by external arbitration. This occurs if:
- Any disputing Party terminates the negotiation before the conclusion of the negotiation period and escalates the Escrow Contract Dispute to the Company; or
- The negotiation period concludes and the Disputing Parties cannot resolve the Escrow Contract Dispute, in which case the Escrow Contract Dispute gets automatically escalated to Tridge Pay.
The Company will then refer the Escrow Contract Dispute for resolution by arbitration by the International Chamber of Commerce (“ICC”) Arbitration in accordance with their Arbitration Rules of the ICC (“ICC Rules”) for the time being in force. The seat of arbitration shall be Hong Kong. The arbitration shall be conducted by a single arbitrator and wholly in English language by law of Hong Kong. The Company shall notify both parties if the Dispute is required to be resolved by a different external arbitration method. This deduction will have priority over any transfer of the Escrow Amount to be made to the Buyer or the Seller after deducting applicable Service Fees.
When an arbitrator issues an award, either party involved in the dispute must submit a copy of the official award to Tridge Pay Website. Upon submission, the Tridge Pay operations team will verify the award and release the funds in accordance with the final settlement terms outlined in the award.
How can the buyer and the supplier receive funds back from Tridge Pay Escrow?
When both the buyer and supplier (i.e. the contracting parties of the escrow agreement) agree to release funds to a designated party, Tridge Pay will adhere to that resolution.
Security
Is Tridge Pay a legitimate service?
Tridge Pay is a platform operated by Tridge Hong Kong Ltd.
Tridge HK Limited (Business Registration No: 73238775) is licensed by the Companies Registry of HKSAR as a Trust or Company Service Provider (License No. TC009320), authorized to offer trade escrow services for cross-border transactions
Tridge Hong Kong Ltd is part of the Tridge Group, which operates a global agriculture marketplace based in South Korea.
Additionally, Tridge Pay worked closely with Deutsche Bank Hong Kong to develop the current system, leveraging their virtual bank account system to set up the escrow account.
How does Tridge Pay protect my personal data and information?
All personal information collected by Tridge Pay is used solely to fulfill our Trust and Company Service Provider (TCSP) obligations and maintain ongoing compliance measures, ensuring that your transactions are smooth and secure.