How does domain name escrow work?
The Escrow Process Step by Step
First, the buyer and seller agree on a price and choose an escrow service like Escrow.com, Payoneer, or the marketplace's own escrow. The buyer sends payment to the escrow service, not the seller.
The escrow service verifies the funds and tells the seller to transfer the domain. The seller pushes the domain to the buyer's registrar account or provides an authorization code.
Once the buyer confirms the domain is in their account, the escrow service releases the money to the seller. If the transfer fails, the buyer gets a refund.
- Buyer pays escrow, not seller directly.
- Escrow confirms funds and notifies seller.
- Seller transfers domain to buyer.
- Buyer confirms receipt.
- Escrow releases funds to seller.
Fees and Timelines
Escrow fees are usually a percentage of the sale price, often around 1-3%, with a minimum fee. Some marketplaces include escrow in their commission.
The process can take a few days to a couple of weeks, depending on the registrars and how quickly both parties respond. International transfers may take longer.
Using escrow protects both parties from fraud. It's standard for domain sales over a few hundred dollars.
- Fees typically 1-3% of sale price.
- Timeline: 3-14 days on average.
- International transfers may take longer.
- Escrow protects buyer and seller.
- Many marketplaces offer built-in escrow.
Common mistakes
- Sending payment directly to the seller without escrow.
- Assuming escrow is free; there are usually fees.
- Not verifying the escrow service is legitimate.