Domain escrow is the safety net that makes high-value domain transactions possible between strangers. Without it, buyers risk paying for domains they never receive, and sellers risk transferring domains without payment. In 2025, escrow is non-negotiable for any transaction over a few hundred dollars.
How Domain Escrow Works
Step 1: Agreement
Buyer and seller agree on price and terms. Both parties register with the escrow service.
Step 2: Buyer Pays Escrow
Buyer sends payment to the escrow service—NOT the seller. Funds are held securely.
Step 3: Seller Transfers Domain
Escrow notifies seller that payment is secured. Seller initiates domain transfer to buyer.
Step 4: Buyer Verifies
Buyer confirms domain is received and functional. Usually given 5-7 days to verify.
Step 5: Seller Receives Payment
Escrow releases funds to seller. Transaction complete!
Top Domain Escrow Services
| Service | Fee | Best For |
|---|---|---|
| Escrow.com | 3.25% (min $25) | Industry standard, most trusted |
| Sedo Escrow | Included in commission | Sedo marketplace transactions |
| Dan.com | Included in commission | Fast transfers, payment plans |
| GoDaddy | Platform-integrated | GoDaddy auction wins |
Recommendation: Escrow.com
For direct sales outside marketplaces, Escrow.com is the gold standard. They've processed over $5 billion in transactions with industry-leading security and dispute resolution.
Escrow Fees Breakdown
| Transaction Amount | Escrow.com Fee | Who Pays? |
|---|---|---|
| $0 - $5,000 | 3.25% (min $25) | Buyer, seller, or split |
| $5,001 - $25,000 | 2.98% | Negotiable |
| $25,001+ | 2.28% + $18 | Often split |
Avoiding Escrow Scams
Red Flags
- Fake escrow sites: Scammers create lookalike URLs (escr0w.com, escroww.com)
- "My own escrow": Never use a seller's suggested unknown escrow
- Wire transfers before escrow: Legitimate sellers never ask for direct payment
- Pressure tactics: "Escrow is too slow, just send payment"
Safe Practices
- Always type escrow.com directly—never click email links
- Verify SSL certificate and URL before entering payment info
- Use established escrow services only (Escrow.com, marketplace escrow)
- Never wire money directly to a seller
- Document all communications
When to Use Escrow
- Always: Transactions over $500 with unknown parties
- Recommended: Any direct sale outside established marketplaces
- Optional: Small purchases from verified, established sellers
- Built-in: Marketplace transactions (Sedo, Dan.com, GoDaddy)
Never Skip Escrow
No matter how trustworthy a seller seems, never send payment directly for valuable domains. Escrow fees are cheap insurance. A 3% fee is nothing compared to losing 100% in a scam.
FAQ
How long does an escrow transaction take?
Typically 5-14 days. Payment verification takes 1-3 days, domain transfer 5-7 days, and buyer verification 2-5 days.
What if there's a dispute?
Escrow.com has a dispute resolution process. Evidence is reviewed, and funds are held until resolved. The service can refund buyers or release to sellers based on findings.