Safefunds Transaction Information + Fee Schedule
CannDig chooses Safefunds as its official transaction manager for auctions, biomass and flower purchases. This is a "safe" alternative to escrow and much more reasonably priced. PayPal charges 2.9% plus $.30 but won't process for hemp. Companies that do process hemp-related transactions charge 4% or more.
The risks inherent in auctions are virtually eliminated for buyers and sellers who use Safefunds. Less than 1% is charged for any transaction (see fee scale below).
A Buyer's regular transaction fee is $0 on a completed transaction. The Safefunds transaction fee is deducted from the Vendor's proceeds.** (Buyers deposit funds directly into their own Safefunds account which they can create before or after a purchase.) Buyers do not send funds directly to Vendors.
CannDig uses Safefunds to safeguard the Buyer and the Vendor. Once the product is verified during our pre-shipment inspection, (by a CannDig logistics partner), then and only then can the product be shipped to the Buyer. CannDig makes every effort to ensure that what is being shipped is "As Advertised" and that the COA and Licenses of the Vendor match the description on the sales invoice.
Deposits may be made by bank wire or electronic funds transfer.
The transaction fees are:
- 0.8% for transactions between $1 and $99,999.
- 0.4% for transactions between $100,000 and $499,999.
- 0.25% for transactions $500,000 and above.
The fee is deducted from the amount the Vendor receives.
How does it work?
Once a CannDig Member has been named as the successful Buyer:
- Safefunds will provide the Buyer with instructions for sending the purchase price for safekeeping to Safefunds.com. These funds will be “frozen” and not available to the Vendor or anyone else. The receipt of the funds will be acknowledged by Safefunds to the Buyer.
- The Vendor must obtain a shipping quote from an authorized shipping and logistics partner. A deposit of the full amount of the shipping cost must be made with Safefunds. 50% of the cost to ship the product will be released to the shipper as soon as the funds have been deposited into the Safefunds account by the Vendor. Under the CannDig Terms and Conditions, the deal will be completed by the Vendor when the Buyer indicates his satisfaction and acceptance of the shipment.
- CannDig will notify Safefunds to disburse the funds per the instructions provided by CannDig.
- Safefunds will notify the Buyer via email that the funds are to be disbursed. The Buyer will have one business day to raise any reason for not disbursing the full amount. The objection will be made directly to CannDig and a copy to Safefunds at firstname.lastname@example.org
- If there is an objection, Safefunds will not disburse the funds until CannDig notifies Safefunds that a resolution has been reached. The Buyer must send an email to Safefunds indicating that a resolution has been reached. Should Buyer and Vendor not agree, Safefunds will follow the instructions from CannDig and the Buyer and Vendor must work out their differences through CannDig. CannDig will be the final arbiter of a solution. In a worst-case, the product will be returned to the Vendor if for cause (Cause may be something such as mold was discovered in more than 10% of the shipment) and funds are returned to the Buyer. Shipping fees will be borne by the Vendor including return shipping fees. A handling charge of up to 5% may be levied by the shipper on returns.
- If no objection is made, Safefunds will disburse the funds as directed by CannDig.
** The only fee exception is when a Buyer is required to make a deposit to secure a transaction. This example depends on the Buyer's performance (not the Vendor's) and the transaction is meant to be canceled if the Buyer performs. In this exception case, the Safefunds fee is paid from the party that receives the funds at the end of the transaction.