Integrating virtual escrow into your platform can act as a safeguard to protect both buyer and seller and can serve to eliminate the risks they both face in these transactions. It allows buyers to purchase with confidence, knowing that they will not be charged until they have received the agreed upon product or service, and sellers feel secure knowing that buyers have placed funds in escrow before the transaction occurs.


A virtual escrow feature is a viable option for marketplace platforms that create a market between users and presents them with a particular set of financial and economic risks. By collecting money up front and holding it in a virtual escrow, the program eliminates the risk of default faced by the seller. By lagging payment of the money held in escrow until after the seller has performed for the buyer, the program’s financial design eliminates the performance risk faced by the buyer.

Developers have to ensure that a virtual excrow seamlessly fits into the program’s larger payment system. They need to consider:

  • UX - recognize the need for safeguards that protect the user during monetary transactions with counterparties and to provide them with intuitive, easy-to-use features
  • Payment Gateways - to choose a system that satisfies all possible user needs and is safe and secure for users’ personal information. The SilverLogic frequently uses Stripe and Braintree for their application’s payment system

Loturas is an online marketplace developed by The SilverLogic as a means to monetize communications with industry experts.

One of the main challenges in creating Loturas was mitigating all financial and economic risk faced by users trading across the online marketplace. By working closely with the founder of Loturas, the SilverLogic determined that virtual escrow features would minimize the many risk concerns of the custom marketplace.


The development teams decided to facilitate Loturas’ payments through the safe, secure, and scalable Stripe payment platform. It was chosen in part because its scalability allowed for an easy-to-integrate virtual escrow feature.

With Loturas, virtual escrow entailed implementing a multi-step process that the network completes when users select an interaction with another user through the network. This is an automatic feature that completes the following steps as the users perform for their counterparty:

  • The buyer selects an interaction on the network that requires payment. He authorizes the amount of the payment and provides his bank account information
  • The authorized amount appears as a pending authorization in the buyer’s bank account
  • The seller accepts the buyer’s request and successfully performs the requested action-If the seller declines the request, the pending authorization is cancelled
  • The buyer is charged the authorized amount 24 hours after the seller completes the action
  • Loturas automatically disburses authorized payment to seller

Because the virtual escrow payment feature places a hold over the payment before communications begin, the seller knows that the buyer will provide the agreed upon amount at the end of the transaction. Because he is not charged until after the transaction has successfully occurred, the buyer knows that he will not have to pay if the seller does not perform.

To ensure that the buyer is not charged for non-performing sellers, he has 24 hours after the scheduled time of the transaction to submit a request to cancel their payment.


A virtual escrow feature means financial safety and security for users. By requiring authorization of payment before communications begin, and putting it in escrow until communications have successfully occurred, Loturas ensures that neither counterparty will be charged if the other does not complete their side of the deal. Additionally, because this is an automated feature, it is convenient and reliable to use.

Loturas is now online and available for job recruiters and job seekers to create an account. It aims to revolutionize the job market as the world’s first monetized social network.


During the development process, The SilverLogic creates a lasting bond with our clients. We pride ourselves on the fact that we deeply integrate ourselves into our clientele’s internal teams. This momentum and camaraderie continues even after the product first goes live.

The SilverLogic is always available to assist with hosting, server maintenance, support, and development of new features for your needs. We value relationships and seek long-lasting partnerships by working together enthusiastically and passionately.


Build your competitive edge.