Are you planning to buy a website that costs an obscene amount of money? Or perhaps a really expensive classic car on eBay? If so, then using an escrow service would really help you avoid potential headaches.
Escrow.com is an online escrow service which started more than 10 years ago with headquarters in Rancho Santa Margarita, CA. Their aim is to provide buyers and sellers with a safe place for their money. They are a licensed escrow service and are compliant with the Escrow Law.
How It Works
Escrow.com offers several services but they specialize in vehicle escrow, domain and website escrow, domain name holding escrow, general merchandise escrow, milestone escrow and broker escrow.
By using Escrow.com, you can have peace of mind knowing that your money is safe and secure. Here is a brief video explaining the process:
The escrow process is not difficult to understand. Escrow.com uses the same model as other escrow services. They act as a trusted third party agent and ensures that both the buyer and seller receive exactly what was agreed upon. In other words, the buyer will only receive the purchased item once they have transferred money to their escrow account. As soon as the buyer receives the item, then the seller will receive the payment.
The great thing about services like those offered by Escrow.com is that they will not only collect and disburse money, they will also ensure the transaction is legitimate and meets all the guidelines set by both the buyer and seller.
There is of course a fee for this service. With Escrow.com, it would depend on the type of transaction as well as the value of the transaction. However, their service fees can be as low as 0.89% of the purchase price and is automatically deducted.
There’s also a disbursement fee which can range from $10-$60. However, if you choose to be paid via regular mail (5-14 business days) then there’s no added charge.
Advantages of Using Escrow.com
As the buyer, the main advantage of using a service like Escrow.com is that it gives you protection against fraudulent activities. Imagine paying $1,000 for a website, only to find out that the seller was in fact a scammer. When you use Escrow.com, such problems would be avoided.
On the other hand, if you are a seller and you use Escrow.com, then it makes you more trustworthy in the eyes of potential customers. They will know you are a legitimate business/professional seller and that boosts buyer confidence.
Disadvantages of Using Escrow.com
In spite of the obvious benefits of using Escrow.com, some businesses opt not to use it because of the costs. Although for purchases of $25,000 and higher the fee is only 0.89%, you would have to pay 3.25% or a minimum of $25 for your transactions for purchases less than $25K. This could mean lesser profits for the seller if he shoulders the cost or even more cost for the buyer if he agrees to pay all the fees.
Nevertheless, for high ticket items like vehicles or valuable domain names and websites, it may be wise to use Escrow.com to avoid being ripped off or to get more customers.