Payment Protection is an optional escrow-like service that holds Client funds securely via Stripe until the Service Provider delivers the agreed-upon services and deliverables. This protects both parties: the Client is assured that funds are held by a neutral party, and the Service Provider is assured that the Client has committed funds to the project.
PilotLedger charges a 2% Payment Protection fee to the Client on all Payment Protection transactions. This fee is in addition to the quoted project amount and is charged at the time of payment. The fee is non-refundable once the transaction is processed, except in cases of full refund as described in Section 6.
Standard Stripe payment processing fees also apply and are borne by the Service Provider as part of their PilotLedger subscription.
Step 1 — Client Payment: The Client pays the invoice amount plus the 2% Payment Protection fee. Funds are held by PilotLedger via Stripe and are NOT immediately transferred to the Service Provider.
Step 2 — Service Delivery: The Service Provider performs the agreed-upon services and delivers all specified deliverables as outlined in the accepted quote.
Step 3 — Release of Funds: Upon confirmation of satisfactory delivery, funds are released to the Service Provider's Stripe Connect account. Release may be triggered by:
(a) The Client confirming delivery is satisfactory, OR
(b) Automatic release 14 calendar days after delivery notification if the Client has not initiated a dispute, OR
(c) Resolution of a dispute in favor of the Service Provider.
Payment Protection may apply to deposit payments, milestone payments, or full project payments as configured by the Service Provider in the quote. The hold-and-release process applies equally to all payment types.
If the Client believes the delivered services or deliverables do not match the accepted quote, the Client may initiate a dispute within 14 calendar days of receiving delivery notification.
Step 1 — Dispute Filed: Client submits a dispute through their PilotLedger client dashboard with a written description of the issue.
Step 2 — Provider Response: The Service Provider is notified and has 7 calendar days to respond with evidence of delivery compliance.
Step 3 — Resolution: PilotLedger will review the dispute based on the accepted quote specifications and the evidence provided by both parties. PilotLedger's decision is final and binding. Both parties agree to provide truthful and complete evidence during the dispute process. Submission of false or misleading evidence may result in account suspension.
Possible Outcomes:
(a) Full release to Provider: Deliverables match the accepted quote. Funds released to Service Provider.
(b) Partial release: Some deliverables match, others do not. Proportional funds released to Service Provider, remainder refunded to Client (minus the 2% fee on the refunded portion).
(c) Full refund to Client: Deliverables substantially fail to match the accepted quote. Full refund to Client including the 2% Payment Protection fee.
Refunds under Payment Protection are processed through Stripe and typically take 5-10 business days to appear in the Client's account. The 2% Payment Protection fee is refundable ONLY in cases of full refund (Section 5, outcome c). Partial refunds do not include the Payment Protection fee on the refunded portion.
PilotLedger acts as a neutral facilitator of the Payment Protection process. PilotLedger does not guarantee the quality of services provided by Service Providers. PilotLedger's dispute resolution is based solely on whether delivered items match the specifications in the accepted quote.
PilotLedger is NOT a party to the service agreement between the Client and the Service Provider. PilotLedger does not employ, supervise, or control Service Providers.
PilotLedger reserves the right to decline Payment Protection for any transaction at its sole discretion.
Payment Protection does not cover:
(a) Disputes about subjective quality beyond what was specified in the quote
(b) Changes in project scope not reflected in an updated, accepted quote
(c) Force majeure events (weather, natural disasters, airspace restrictions, equipment failure)
(d) Consequential, incidental, or indirect damages
(e) Lost profits or business opportunities
PilotLedger's total liability under Payment Protection for any single transaction shall not exceed the amount held in escrow for that transaction.
This Payment Protection Addendum is governed by the laws of the State of Arkansas. Any disputes arising from Payment Protection that cannot be resolved through PilotLedger's internal dispute process shall be resolved through binding arbitration in Washington County, Arkansas, in accordance with the rules of the American Arbitration Association.
PilotLedger reserves the right to modify this Payment Protection Addendum at any time. Changes take effect 30 days after notification via email to registered Client accounts. Continued use of Payment Protection after the effective date constitutes acceptance of the modified terms.
Payment Protection is entirely optional. Clients may choose to pay Service Providers directly without using Payment Protection. Service Providers may choose not to offer Payment Protection on their quotes. Neither party is required to use this service.
Personal and financial information collected during Payment Protection transactions is handled in accordance with PilotLedger's Privacy Policy. PilotLedger does not share transaction details with any third party except as required by law or as necessary to process payments through Stripe.
← Back to PilotLedger