Escrow & Refund Policy
Escrow Architecture Overview
The Umarn Escrow & Payment Protection Policy ("Escrow Policy") defines how funds are securely processed, held, and disbursed across all transactions on the Umarn campus commerce platform.
To prevent cash-on-delivery risks, fake transfer alerts, and unfulfilled orders, Umarn operates a 100% Paystack-backed escrow ledger. Buyers pay upfront, but funds are only released to vendors and riders after successful order completion.
The Two-Way Delivery Handshake
Every order on Umarn follows a strict 4-step cryptographic and status-locked escrow lifecycle:
Escrow Lifecycle States:
- `PAID` (Funds Locked): Paystack webhook verifies customer deposit. Money is held in the platform escrow account.
- `PENDING_CUSTOMER_CONFIRMATION` (Dropped Off): Vendor or rider marks the item dropped off at the hostel/location pin.
- `DELIVERED` (Funds Released): Buyer inspects the item and clicks [Confirm Received] in WhatsApp. Escrow ledger executes instant vendor & rider payouts.
- `PAYMENT_REVIEW` (Frozen): Triggered if a buyer or vendor logs a dispute. Escrow payouts are frozen until campus admin mediation completes.
12-Hour Auto-Confirmation SLA
To prevent buyer ghosting (buyers who receive goods but forget to click confirm), Umarn runs an automated hourly SLA monitor.
If an order remains in `PENDING_CUSTOMER_CONFIRMATION` for 12 consecutive hours with no dispute or issue logged by the buyer, the platform automatically transitions the order to `DELIVERED` and releases the vendor payout.
Refund Processing & Timelines
In cases where a dispute is resolved in favor of the buyer (or an unaccepted order times out), refunds are issued immediately via Paystack.
- Debit Card / Bank Transfer Refunds: Processed within 2 to 24 hours back to the funding account.
- Free Delivery Credits: Refunded instantly to the buyer's promotional balance.