Escrow Policy
Last updated: 1 August 2026 · How MidPoint holds, releases and refunds funds
1. How funds are held
Buyer payments are collected by our licensed payment partner and held in a segregated client account. Held funds are not MidPoint's property, are not used for our operating expenses, and are not lent or invested. Each amount is ring-fenced against a specific transaction reference.
2. What is held
The product price plus any delivery amount entered by the buyer at checkout. Both are released together on the same triggers.
3. Release triggers
| Trigger | Outcome |
|---|---|
| Buyer confirms receipt and accepts the item | Immediate release to seller, less the 5% fee and VAT |
| 8-hour inspection window expires with no action | Automatic release to seller |
| Buyer never confirms receipt, 7 days after dispatch | Discretionary release to seller on satisfactory proof of delivery, after at least two buyer notifications |
| Dispute opened before window expiry | Auto-release suspended; funds locked pending resolution |
| Seller fails to dispatch within a reasonable period | Transaction cancelled; refund to buyer less the non-refundable processing fee |
| Both parties mutually cancel after funding | Refund to buyer less the non-refundable processing fee |
| Cancelled before the buyer funds it | No fee arises; nothing deducted |
4. Refunds
Approved refunds return the amount held — the product price plus any delivery amount — to the buyer's original payment method, typically within 5–10 business days depending on the bank, less the non-refundable payment processing fee.
The payment gateway charges a processing fee when the buyer funds a transaction — currently 1.5% of the amount paid, capped at ₦2,000, plus 7.5% VAT . The gateway does not return this fee when a payment is reversed, so MidPoint cannot refund it. It is deducted from the buyer's refund total on every refund or cancellation of a funded transaction, whatever the reason and whoever is at fault. MidPoint charges no service fee of its own on a refunded transaction.
Worked example — ₦145,000 transaction
Where a full refund follows a dispute, the buyer bears the cost of returning the item and must upload proof of postage; the refund is released once the seller confirms receipt of the return or MidPoint is otherwise satisfied it was returned. Where a transaction is cancelled before the buyer has funded it, no fee arises and nothing is deducted.
5. Deductions at release
On release to a seller we deduct the 5% MidPoint Service Fee and 7.5% VAT on that fee. No deduction is applied to the delivery amount, which passes through to the seller in full. Buyers are never charged a MidPoint service fee. On a refund, no MidPoint service fee is charged; only the gateway processing fee described in section 4 is deducted.
6. Payout eligibility
Sellers must have completed identity verification, including a successful BVN-to-account-name match, before any payout is made. Where verification fails or is withdrawn, funds remain held and the transaction may be refunded to the buyer.
7. Unclaimed funds
Where funds cannot be released or refunded because a party is unreachable or a payout account cannot be verified, we hold the funds and attempt contact for 180 days, after which they are handled in accordance with Nigerian unclaimed-property and financial regulations.
8. Limits & suspension
We may impose transaction limits, delay a release, or freeze funds where we have reasonable grounds to suspect fraud, money laundering, prohibited goods, or a breach of these policies, and where required to comply with a lawful order.