Escrow refers to the process whereby a thirdy party(e.g. escrow.com) holds money on behalf of a buyer and a seller.
Escrow is the globally recognised mechanism for safely handling transactions of value such as premium domain name transfers. Here is some further detail about escrow.com in regards to how it works for domain name sales.
The Safe Way to Buy and Sell Domain Names Online
Whether you’re buying or selling domain names online, Escrow.com is a name you can trust. Escrow.com is a government licensed and audited 3rd party that safely holds a Buyer’s payment in a trust account until the entire transaction is complete. That way, Buyers can be confident the domain will be registered in their name and Sellers can be sure they’ll be paid.
Since the Buyer pays Escrow.com and not the Seller, Escrow.com can withhold payment until it’s satisfied the domain name has been transferred by the Seller. One of the ways Escrow.com does this is by checking the WHOIS database of the appropriate Registrar* to make certain it properly reflects the new Buyer’s name as the domain name Registrant. Once this has been verified, Escrow.com releases payment to the Seller.
Anytime you pay in advance for something you’ve purchased on the Internet, you’re taking a chance. People can forge their identities. They can misrepresent what they’re selling. And even with the best of intentions, some people are just plain irresponsible.
That’s why it’s important to turn to a trusted 3rd party like Escrow.com for transactions involving a high risk of fraud like domain name transfers. Relying on Escrow.com is like having an insurance policy that protects you against fraud, deception and irresponsibility.
- Peace of mind, Security, and Convenience
- Assured Domain name transfer prior to paying Seller
- Ability to confirm domain ownership directly with the registrar before the seller is paid.
- Ability to pay by wire transfer and in some cases PayPal, check, money order, or credit card (Visa, MasterCard, American Express)
- Ability to send credit card information to a financial institution, not a stranger
- Easy access to live customer support by phone or email