Ecommerce

Escrow

A neutral third party that holds payment until both sides of a sale have done their part.

By Nick Irmo · Updated

What Escrow means

When buying or selling a domain or website, escrow protects the buyer from paying for assets that never transfer and the seller from handing over assets without payment.

Why it matters for your website

Buying or selling a domain or website online means trusting a stranger with money or valuable assets. Escrow lowers the risk of being scammed on either side. It is especially worth it for larger deals where a mistake would be costly.

Example

A business owner buys a niche content site from a seller she met online. The money sits with an escrow service until she confirms the domain and site files are in her accounts.

Tips

  • Use a well-known, licensed escrow service, and type its address in yourself.
  • Agree in writing on exactly what assets transfer before funding escrow.
  • Confirm you control the domain and accounts before releasing payment.

Common mistakes

  • Clicking an escrow link a seller sends you, which could be a fake site.
  • Releasing funds before checking the transferred assets work as promised.

Questions about Escrow

What is Escrow?
A neutral third party that holds payment until both sides of a sale have done their part.
Who pays the escrow fee?
Buyer and seller agree on that. The fee can be paid by one side or split between them.
How long does a domain escrow take?
It depends on how fast payment clears and the domain transfers. Simple deals can wrap up quickly, while registrar transfers can add days.

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