The 6 Best Online Escrow Services Of October 2020

  • Domain is held securely throughout transaction
  • Safe delivery is guaranteed once funds have been received
  • A licensed and regulated escrow company compliant with Escrow Law
  • Regularly audited by government authorities
  • Armed with an in-depth knowledge of the escrow process
  • Available on:
  • Microsoft Windows logoWindows
  • Apple Mac logoMac
  • iOS logoiOS
  • Android logoAndroid
  • Linux logoLinux

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1

Escrow.com Concierge Services

  • Domain is held securely throughout transaction
  • Safe delivery is guaranteed once funds have been received
  • A licensed and regulated escrow company compliant with Escrow Law
  • Regularly audited by government authorities
  • Armed with an in-depth knowledge of the escrow process
2

Escrow.com Standard Service

  • Online escrow that is simple and safe for buyers and sellers
  • A licensed and regulated escrow company compliant with Escrow Law
  • Regularly audited by government authorities
  • Armed with an in-depth knowledge of the escrow process
  • The safest service to trust with your money
3

Epik.com

  • Support for major national currencies and leading cryptocurrencies
  • Guaranteed private transactions
  • No escrow fee for lower value sales
  • Great for domain trades
  • 24/7 support for buyers and sellers
4

Escrow.com Domain Holding Service

  • Domain is held in escrow
  • Buyer makes scheduled payments
  • Include up to three domains without additional charges
  • Regularly audited by government authorities
  • The safest service to trust with your money
5

PayPal

  • 24/7 transaction monitoring
  • Fraud prevention support
  • Free dispute investigation & resolution
  • Support for 25 major currencies
  • Purchase protection in over 200 markets
6

DAN.COM

  • 100% successful acquisitions since 2014
  • Fully automated invoicing
  • Daily payouts
  • Payments secured by Adyen
  • Live chat & email support

If you buy or sell a domain online, chances are you need to use an escrow service to protect the transfer. While most people probably associate escrow with real estate purchases, it’s also commonly used for large purchases online, like premium domain names. When a buyer knows that their payment is going into escrow until the transaction is completed, they feel safe about making the purchase.

Take a look at our guide on online escrow services to learn how you can make smart decisions and choose the best escrow service for your needs.

What Is Escrow?

When an online escrow service is used in a transaction, the buyer doesn’t pay the seller directly. Instead, the buyer pays the escrow service. This is commonly known as putting the funds into escrow. The escrow service, which is licensed by the government, places the money into a trust account until the transaction is finalized. For premium domain transactions, the domain name is often held in escrow as well.

Before funds are released to the seller, the buyer has the opportunity to confirm the product they purchased is what they expected and agreed to purchase. After this confirmation, the escrow service releases the money from the trust account to the seller.

Escrow allows buyers to feel safe because they have the opportunity to inspect the goods they’re buying and don’t actually pay the seller until they’ve received an acceptable product. It also lets sellers feel safe because they are guaranteed to receive payment and never have to deal with chargebacks. 

Online escrow services are used during transactions involving many high-ticket items, including high-end and classic automobiles, airplanes, yachts, computers and other electronics, jewelry, fine art, and other luxury goods. Escrow is also commonly employed for the sale of premium domain names.

How Does An Online Escrow Service Work?

Online escrow companies work fundamentally like the traditional escrow companies that handle real estate transactions. The key difference is that online escrow service providers can offer various solutions for the different types of transactions conducted over the Internet. The best escrow service for your needs depends in large part on the type of transaction.

Escrow services are primarily used to secure business-to-consumer (B2C), business-to-business (B2B), and premium domain name transactions, though they’re also available for consumer-to-consumer (C2C) transactions on sites such as eBay. B2B and premium domain escrow transactions are typically the most complex, since they can involve thousands or even millions of dollars.

How Long Are Funds Held In Escrow?

An escrow transaction can take anywhere from a few days to several months, depending on its complexity. The process generally requires several steps: The transaction is proposed, negotiated, and a contract is drawn up. The buyer then deposits the required funds into escrow, and reviews the product. Once the buyer accepts the product, the escrow service will release payment to the seller.

Using The Best Escrow Services Safely

When online escrow services began to proliferate in the early 2000s, issues of fraud sprang up as well. The U.S. Federal Trade Commission reported that up to 25 fraudulent escrow services were opening every month. The scams were simple — these fraudulent services advertised high-end products that didn’t exist, the buyer would deposit money into (what they thought was) escrow, and the fake company would disappear.

Over the past 20 years, safeguards have been put into place to help consumers and businesses safely handle transactions through escrow. The top protection for anyone using an escrow service is to confirm that the company is licensed in the state in which the transaction is being made.

Another way to remain safe is to insist on dealing with companies acknowledged as the best escrow services available. Probably the best-known is Escrow.com, which is the only online escrow service licensed in all 50 U.S. states. Epik is a great choice for international transactions, as it handles many national currencies as well as the top cryptocurrencies. PayPal also provides significant escrow services, with purchase protection available in most major markets and support for 25 national currencies available.

How To Choose The Best Escrow Service For You

Choosing the best escrow service for you becomes simpler when you understand what your needs are and what to look for in a reputable service. Follow these tips to make the right choice when comparing online escrow services.

  • Ask about the escrow company’s fee and payment structure. A trustworthy escrow company should handle its own payment processing. It shouldn’t ask you to set up a separate account with an online payment services company. Legitimate escrow services don’t ask you to send payment to an individual or use person-to-person money transfer options such as Western Union.
  • Make sure you understand how funds are disbursed. This is especially important if you’re setting up a transfer of funds with partial payment issued at regular intervals or upon completion of certain services.
  • Do your homework on the escrow company. If you’re not dealing with one of the well-known best escrow services, it’s important to check out the company before you enter into any transaction. Avoid companies that don’t list customer service numbers on their websites or that don’t answer your phone calls with a live person. Verify with your state’s Department of Business that the company is licensed and bonded.
  • Confirm that the company handles the payment types/currencies that you require. Different escrow services accept a variety of international currencies and payment methods. Verify the service you intends to use accepts your preferred currency and payment method, whether that be wire transfers, ACH payments, PayPal, etc.

Using an escrow service lets you conduct business online within the protection of a secure marketplace. If you’re interested in online escrow services because you’re in the market for a premium domain name, contact the VPN.com premium domain broker team today,

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