How Escrow Works

ddrassociate · 12-04-2004, 08:11 AM

I've never used Escrow. How does it work?

AdoptableDomains · 12-04-2004, 09:45 AM

It can be a little different depending on the escrow company, but here's a general overview.

1. Escrow transaction started by buyer or seller agreeing to terms of sale with item (domain) listed.

2. Other party gets email to agree to the escrow transaction agreement.

3. Buyer sends payment to escrow company.

4. Escrow company verifies satisfactory payment and contacts seller to transfer goods or domain to buyer.

5. Buyer acknowledges receipt of goods or control of domain. Verifies with escrow service that he has control. (usually has so many days to do so).

6. Escrow service verifies whois record for domain.

7. Escrow service sends payment to seller less escrow fees if agreed upon.

If payment is never received, seller never transfers goods or domain. If Item never received by buyer, escrow service returns payment to buyer.

ddrassociate · 12-04-2004, 10:08 AM

Oh okay. Thanks for the info. Is there a way for the buyer to say he never received the name when in fact he did, causing the Escrow service to give him back his money and now he has both, the money and the name?

dx3k · 12-04-2004, 11:19 AM

y would you want to do this?

ddrassociate · 12-04-2004, 12:08 PM

Not me. I'm saying in the case that I'm the seller. I could lose my name and not gain any money.

AdoptableDomains · 12-04-2004, 12:33 PM

Quote:

Originally Posted by ddrassociate

Oh okay. Thanks for the info. Is there a way for the buyer to say he never received the name when in fact he did, causing the Escrow service to give him back his money and now he has both, the money and the name?

Not very likely. The escrow service should not refund the money unless the seller indicates they have control of the domain back. If neithe party had it, it would probably remain in limbo until resolved.

ddrassociate · 12-04-2004, 12:38 PM

So Escrow service is the the most risk-free way of selling domains?

jeter4982 · 12-04-2004, 02:24 PM

yes, but you also lose a lot of your profit to their fees. i would recommend just using paypal, and if you want to be safe, you can use paypal buyers protection, which is somewhat similar to escrow

ddrassociate · 12-04-2004, 04:19 PM

Oh okay thanks. I don't mind using paypal if I'm the seller, but I would feel a little nervous buying a $1,000 name through paypal.

armstrong · 12-04-2004, 04:46 PM

Quote:

Originally Posted by jeter4982

yes, but you also lose a lot of your profit to their fees. i would recommend just using paypal, and if you want to be safe, you can use paypal buyers protection, which is somewhat similar to escrow

How does "paypal buyers protection" work?
How is it similar to escrow?
Is there a fee for using it?

Thanks for the clarification. I'm sure many here would be interested in a Paypal-guaranteed system, if it really protects all parties. Normally, paypal does not honor refund requests for virtual stuff like domain names.

jeter4982 · 12-04-2004, 04:49 PM

Quote:

Originally Posted by ddrassociate

Oh okay thanks. I don't mind using paypal if I'm the seller, but I would feel a little nervous buying a $1,000 name through paypal.

it protects both parties

jeter4982 · 12-04-2004, 04:54 PM

Quote:

Originally Posted by armstrong

How does "paypal buyers protection" work?
How is it similar to escrow?
Is there a fee for using it?

Thanks for the clarification. I'm sure many here would be interested in a Paypal-guaranteed system, if it really protects all parties. Normally, paypal does not honor refund requests for virtual stuff like domain names.

ok, sorry its not exactly what i said, but it would work if you meet the criteria
it basically investigates the transaction, and covers you up to $100. however, the part i didnt read is Your eBay feedback score is at least 50
Your eBay positive feedback percentage is at least 98%
You are a Verified member of PayPal
You use a Premier or Business PayPal account to accept payments
You have a U.S., U.K., German, or Canadian PayPal account in good standing

so if you had all this, then you could set up an auction, with a buy now auction and quickly send the url of the auction to the buyer, and preceed from there. it looks pretty good if you have all of that

the program details are at
https://www.paypal.com/cgi-bin/websc...p-info-outside

armstrong · 12-04-2004, 05:01 PM

From Paypal's site about "Buyer Protection":

Quote:

PayPal Buyer Protection covers non-delivery of tangible items and tangible items that are received significantly not as described.

As domains are considered "intangible", then it does not qualify for buyers protection.

From Paypal's site about "Seller Protection":

Quote:

The Seller Protection Policy does not cover:

1. Intangible goods, such as services and sales or licenses of digital content. Only the sale of physical goods is covered.

Again, intangible goods like domains are ineligible.

Therefore, in case of fraud involving domains sold via Paypal, no protection exists for anyone, except Paypal themselves.

jeter4982 · 12-04-2004, 05:08 PM

Quote:

Originally Posted by armstrong

From Paypal's site about "Buyer Protection":

As domains are considered "intangible", then it does not qualify for buyers protection.

From Paypal's site about "Seller Protection":

Again, intangible goods like domains are ineligible.

Therefore, in case of fraud involving domains sold via Paypal, no protection exists for anyone, except Paypal themselves.

\

ok, i guess i was wrong then. i didnt read through all 800 pages of info. thanks for correcting me armstrong!!!

12-04-2004, 08:11 AM	#1 (permalink)
ddrassociate NamePros Regular Join Date: Nov 2004 Location: USA Posts: 520 0.00 NP$ (Donate)	How Escrow Works I've never used Escrow. How does it work? __________________ -DDr

12-04-2004, 09:45 AM	#2 (permalink)
AdoptableDomains Senior Member Join Date: Aug 2003 Location: SW Ohio Posts: 4,017 2,008.11 NP$ (Donate)	It can be a little different depending on the escrow company, but here's a general overview. 1. Escrow transaction started by buyer or seller agreeing to terms of sale with item (domain) listed. 2. Other party gets email to agree to the escrow transaction agreement. 3. Buyer sends payment to escrow company. 4. Escrow company verifies satisfactory payment and contacts seller to transfer goods or domain to buyer. 5. Buyer acknowledges receipt of goods or control of domain. Verifies with escrow service that he has control. (usually has so many days to do so). 6. Escrow service verifies whois record for domain. 7. Escrow service sends payment to seller less escrow fees if agreed upon. If payment is never received, seller never transfers goods or domain. If Item never received by buyer, escrow service returns payment to buyer. __________________ AdoptableDomains.com ~~~~~Finding Good Homes for Good Names~~~~~ FuelPrices.mobi - Fish.us - ManhattanNewYork.net - Salesmen.info - SoundSystems.org Dickering.com - JobPlacement.biz - LotteryTickets.ws - Deleted.cc - Names.im - MP3.hn

12-04-2004, 10:08 AM	#3 (permalink)
ddrassociate NamePros Regular Join Date: Nov 2004 Location: USA Posts: 520 0.00 NP$ (Donate)	Oh okay. Thanks for the info. Is there a way for the buyer to say he never received the name when in fact he did, causing the Escrow service to give him back his money and now he has both, the money and the name? __________________ -DDr

12-04-2004, 11:19 AM	#4 (permalink)
dx3k NamePros Regular Join Date: May 2004 Location: www.dx3k.com Posts: 591 154.00 NP$ (Donate)	y would you want to do this? __________________ I B Back

12-04-2004, 12:08 PM	#5 (permalink)
ddrassociate NamePros Regular Join Date: Nov 2004 Location: USA Posts: 520 0.00 NP$ (Donate)	Not me. I'm saying in the case that I'm the seller. I could lose my name and not gain any money. __________________ -DDr

12-04-2004, 12:38 PM	#7 (permalink)
ddrassociate NamePros Regular Join Date: Nov 2004 Location: USA Posts: 520 0.00 NP$ (Donate)	So Escrow service is the the most risk-free way of selling domains? __________________ -DDr

12-04-2004, 02:24 PM	#8 (permalink)
jeter4982 Senior Member Join Date: Oct 2004 Location: CT, USA Posts: 3,332 938.65 NP$ (Donate)	yes, but you also lose a lot of your profit to their fees. i would recommend just using paypal, and if you want to be safe, you can use paypal buyers protection, which is somewhat similar to escrow

12-04-2004, 04:19 PM	#9 (permalink)
ddrassociate NamePros Regular Join Date: Nov 2004 Location: USA Posts: 520 0.00 NP$ (Donate)	Oh okay thanks. I don't mind using paypal if I'm the seller, but I would feel a little nervous buying a $1,000 name through paypal. __________________ -DDr

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