question How Escrow Works for Domain Sellers?

[JamesCrew]

Hi all,

Couple of quick questions about how Escrow.com works for domain sellers and what things I as a seller should take under consideration before using Escrow.com. I tried to search the forum but didn't get the answers.

So here goes:

1. What happens when the seller/buyer agrees to transact using Escrow? Who will act first on Escrow.com to proceed with the transaction process?

2. I've read that buyer will deposit the amount to Escrow. Then what? When and to WHOM I will transfer the domain; to Escrow.com or directly to the buyer's registrar? Either case, how would Escrow.com know that the domain transfer went smoothly and that the buyer has received the domain?

3. Usually how many days can it take to receive the payment and to complete the transaction?

4. Any chances I can be scammed using Escrow.com once the transaction has been completed and the domain has been in buyer's possession?

Thanks,

 

[000]

1. Once the transaction is initiated, both parties will receive an email. Either the buyer or seller can initiate the transaction, at which time the other party will need to log in and agree to the terms. As the seller, you'll probably want to set everything up.

2. Escrow will tell you what to do as you go along. Once the transaction has been agreed to, and the buyer's payment is approved, you'll end up transferring the domain directly to the buyer (using only the email that the buyer used to sign up for the transaction - again, Escrow tells you this). Once the buyer gets the domain, they'll need to log in at Escrow and confirm that they received it, and then approve it as well (you will select an inspection period, ranging from 1-5 days or something like that). Once they approve the merchandise, Escrow will prepare the funds for disbursement.

3. Time til you get paid depends on the payment option you select. You can go with a free option (such as a snail mail check) or select a faster method (such as overnight check) for maybe $20-40. Keep in mind that Escrow is closed weekends.

4. Once the transaction is over..... I don't think so.

 

[JamesCrew]

2. Escrow will tell you what to do as you go along. Once the transaction has been agreed to, and the buyer's payment is approved, you'll end up transferring the domain directly to the buyer (using only the email that the buyer used to sign up for the transaction - again, Escrow tells you this). Once the buyer gets the domain, they'll need to log in at Escrow and confirm that they received it, and then approve it as well (you will select an inspection period, ranging from 1-5 days or something like that). Once they approve the merchandise, Escrow will prepare the funds for disbursement.

Appreciate your instant reply mate

Question regarding No. 2. Say the domain has been sent to the buyer's account and the buyer has accepted it. But what if the buyer doesn't update the status of the transaction in the Escrow.com for days? Is that a possibility? I mean what if the buyer is curious to further confirm the domain into his/her account (you know, just to make extra sure)?

So is there any penalty against this delay from Escrow?

 

[000]

Question regarding No. 2. Say the domain has been sent to the buyer's account and the buyer has accepted it. But what if the buyer doesn't update the status of the transaction in the Escrow.com for days? Is that a possibility? I mean what if the buyer is curious to further confirm the domain into his/her account (you know, just to make extra sure)?

So is there any penalty against this delay from Escrow?

In the event that the buyer doesn't update to say that they've received the domain, I call Escrow and they can usually see (via whois or transfer confirmation emails) that the transfer did take place, so they start the inspection period. Once the inspection period has ended (however many days you set - I select 2 by default), assuming the buyer hasn't filed some sort of dispute, I believe the merchandise is automatically approved. At most, maybe you'd have to call Escrow and they'll get everything all finished up for you.

I've used Escrow for numerous transactions ranging from 1 - 80 domains per deal, with no issues. If you're in any way in doubt about a buyer's legitimacy, and the transaction is more than ____ (for me: upper $xxx), use Escrow.

 

[JamesCrew]

In the event that the buyer doesn't update to say that they've received the domain, I call Escrow and they can usually see (via whois or transfer confirmation emails) that the transfer did take place, so they start the inspection period. Once the inspection period has ended (however many days you set - I select 2 by default), assuming the buyer hasn't filed some sort of dispute, I believe the merchandise is automatically approved. At most, maybe you'd have to call Escrow and they'll get everything all finished up for you.

I've used Escrow for numerous transactions ranging from 1 - 80 domains per deal, with no issues.

So if the case arise, Escrow will do the needful to save me from any possible delay, scam; right? That really helps. Many thanks mate.

 

[DKN]

Useful links :

How Does Domain Name Escrow Work?
http://www.domainsherpa.com/how-does-domain-name-escrow-work/

Domain Name Escrow with Escrow.com
http://www.domainsherpa.com/escrowcom-escrow/

 

[000]

In my experience, they've been helpful in speeding things along in the event of a delay.

That's not to say it's not possible to get scammed.... I've never had a problem, though, and the process is far safer than PayPal.

 

[JamesCrew]

In my experience, they've been helpful in speeding things along in the event of a delay.

That's not to say it's not possible to get scammed.... I've never had a problem, though, and the process is far safer than PayPal.

Now that's what I wanted to hear (safer than Paypa).hehehe.

 

[aramyus]

One disadvantage of escrow is that they do not accept paypal unless you have a US paypal account ( or at least it was so up to a few months ago)

I've read many times that paypal is safe too for small transactions (may be up to $xxx).

One tip I've read is that you should send a CD with the domain access codes with a sender receipt. It minimizes the risk of complaint from the buyer for not receiving the domain.

 

[JamesCrew]

Since we are on the topic of domain transaction and Escrow, I have a little Paypal question too. Would it be professional of me as a seller to ask the buyer to send "gift payment" for small domain transactions? You know, just to stay safe. As I have read that gift payments thru Paypal are non-refundable to the buyer.

What do you guys think?

 

[aramyus]

I wouldn't recommend you even try to play games with paypal. They have a zero-tolerance policy and they would quickly close your account if you play games.

BTW, I strongly recommend against using paypal for any strategic activity. They're OK for side/marginal/personal activities. But they do not care at all about your business. Just an example: I've tried to contact paypal may be a dozen times and all I could get were robotic answers that did not address the question I was asking. The only time they answered seriously was when I was suspecting a fraud at their detriment.

 

[JamesCrew]

Was thinking to start a separate thread about it but I think this thread looks relevant enough for couple of my questions regarding Paypal Mass Payment.

Questions:

1. What is Paypal Mass Payment?
2. Is it safe to use this option to receive payments from buyers while selling domains using Paypal?
3. Can Mass Payment be reversed (from buyer) like normal Paypal payments (within 45 days)?

Cheers,

 

[Bullock]

Using Paypal the seller have to send "auto-info" directly to the buyer. Or buyer must anticipate payment.
Who trusts

 

[000]

Was thinking to start a separate thread about it but I think this thread looks relevant enough for couple of my questions regarding Paypal Mass Payment.

Questions:

1. What is Paypal Mass Payment?
2. Is it safe to use this option to receive payments from buyers while selling domains using Paypal?
3. Can Mass Payment be reversed (from buyer) like normal Paypal payments (within 45 days)?

Cheers,

The average buyer isn't going to know how to do a mass payment, and adding an unnecessary element of confusion to the sale process is inadvisable. Skip it and suck up the fees, or perhaps mention that you prefer checks by mail (although you should probably still be willing to send a PayPal invoice, assuming you can trust the buyer).

 

[biggie]

Hi


when receiving payment via paypal, i have asked buyers to either pay the fee,or i'll add a 5% handling fee or i'll ask for to be paid via masspay.

or as an alternative, you can add the fee into the price of the domain.


however, i strongly suggest you and others, to read the faqs, posted on Escrow.com

https://www.escrow.com/support/faqs/domain-name-transfers.aspx

Good Luck!

imo...

 

[JamesCrew]

The average buyer isn't going to know how to do a mass payment, and adding an unnecessary element of confusion to the sale process is inadvisable. Skip it and suck up the fees, or perhaps mention that you prefer checks by mail (although you should probably still be willing to send a PayPal invoice, assuming you can trust the buyer).

Actually I wasn't so much worried about Paypal fee but what concerns me is the "payment reverse from the buyer" once the domain get to his/her possession.

So I wanted to know if by using Paypal Mass Payment option, can this factor be eliminated?

 

[biggie]

if you're worried someone will reverse the paypal transaction, then either use escrow or don't do business with them.

plain and simple.


imo...

 

[JamesCrew]

if you're worried someone will reverse the paypal transaction, then either use escrow or don't do business with them.

plain and simple.


imo...

Yup, that's the first logical thing came to my mind too but I was asking about this option for small-to-medium domain deals (xxx, low x,xxx).

So no one here have exact idea whether sent payments from Paypal Mass Payment can or can't be reversed?