What is Escrow?
What is Escrow?
An escrow is a third party financial arrangement where the third party holds and regulates payment and helps to make the transaction of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company. When you agree to buy a domain name, you agree to do certain things: The buyer will pay the agreed upon amount by a specific time to Escrow, and the seller will transfer the asset (Domain name) to the buyer’s account.
How does Escrow Work?
Escrow service is simply to ensure that everybody sticks to their end of the bargain and reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied.
- Buyer and Seller agree to terms – Either the Buyer or Seller begins a transaction. After registering an account, all parties agree to the terms of the transaction.
- Buyer pays Escrow – The Buyer submits a payment by approved payment method to our secure Escrow Account, Escrow verifies the payment, the Seller is notified that funds have been secured ‘In Escrow’.
- Seller transfers the domain to Buyer – Upon payment verification, the Seller is authorised to transfer the domain name to the buyer’s account. Escrow verifies that the Buyer receives the merchandise.
- Buyer accepts domain– The Buyer accepts the domain and confirms it on Escrow.
- Escrow pays the Seller – Escrow releases funds to the Seller from the Escrow Account.
- Transaction is complete – Funds are disbursed to the seller safely and securely!
Escrow offers various types of payment options including wire transfers, credit cards and PayPal. Payment types may have certain limitations. you will know it accurately when you approach an Escrow provider.
Why use Escrow?
Basically Escrow services are safe for the entire process. Buyers and sellers benefit from a third party monitoring and securing a transaction.
If you want to sell your domain name to any interested buyers, how can you do online transactions safe and secure? Direct payments are risky as you’re dealing with somebody you don’t know anything about, and they might be located somewhere in the corner of the world. It’s not about professional to demand buyers to send a up front payment via Wire or PayPal or Western Union. Also online scammers frequently take advantage of this chance. Some scammers may take the money back via Disputes and take the favour on their side. To avoid all this misunderstanding and conflicts we are using Escrow services.
Some of the Notable Escrow service providers:
Note: This post will help a Newbie who is interested in buying or selling high value domain names.