Due to COVID -19, CDAX is working with Trust Your Supplier an IBM and Chain Yard co-branded network, to provide a trusted payment solution for buyers and sellers.
How does the CDAX Paymaster Service work?
CDAX role as a Paymaster is to secure funds on behalf of buyer in a custody and settlement account and hold goods ordered contractually from the Supplier under a consignment arrangement until the buyer verifies the acceptance of the ordered goods and sends a code to release funds to seller, at which point funds are released to pre-agreed seller accounts and Paymaster transfers title and goods to the buyer.
Why do people need paymaster services?
In response to COVID-19, crucial decision makers are in a race against time to acquire the tools and equipment they need to keep their constituents safe. Supply chains around the world are already overwhelmed, and identifying and vetting an alternative supplier takes time that public authorities don’t have. Additionally, buyers need a tool to identify and vet the hundreds of large and small businesses from outside the traditional healthcare procurement system who are reorganizing their businesses to develop masks, gowns and other essential supplies. To create a safe environment for these transactions, and to add an additional layer of trust, CDAX, in collaboration with IBM and Chain Yard’s “Trust Your Supplier Network, have added crucial Paymaster services to insure buyers and sellers against bad actors and fraud. The paymaster service creates a layer of transactional insurance and security for both buyers and sellers, by guaranteeing that payments have been initiated before the supplies are shipped, and payment will not be released until the transaction is fulfilled.
The World Bank has stated that “fighting fake medicine and supplies is crucial in this pandemic” “Shortages in COVID-19 related products are likely, opening the door to criminals who peddle falsified and substandard health products” “In this time of need, more than ever, health financing and development agencies need a coordinated approach to health commodity procurement.”
Tom Woods – World Bank, Chairman of the Global Steering Committee for Quality Assurance of Health Products
With our system, both the buyer and a 3rd party inspector verify orders are fulfilled and supplies are usable before funds are released.