Escrow service

What is a domain name escrow service?

An escrow is an amount retained by an escrow provider for a certain period of time. This is done through an escrow account managed by a so-called escrow agent, a neutral third party. Only if an agreement between buyer and seller is fulfilled, the money in the seller's account is paid out by the escrow agent. Most domain name sales these days see the use of such a construction.

Tappaya's escrow service

Buyers and sellers contacted through the Tappaya platform have the option of carrying out the transaction themselves, or using Tappaya's escrow service for this purpose. When opting for our escrow service, we as an independent escrow provider will set up the transaction process as follows, to ensure a secure transaction:

Step 1. The deal is confirmed to us including contacts on buyer's side and seller's side.

Step 2. We ask the seller to provide us with the authorisation code(s) of the relevant domain(s) and to send us the corresponding invoice for the buyer.

Step 3. We then submit the payment request to the buyer and move the relevant domain name(s) to our own management.

Step 4. Once the domain is under Tappaya's management, we inform the buyer that the domain is in escrow and the invoice can now be paid to the seller.

Step 5. Now the seller needs to confirm receipt of payment. Once this is done and we have received confirmation of this, we release the authorisation code to the buyer. The buyer is requested to move the domain within 5 working days and put it in his own name.

With the completion of step 5, the transaction is complete.

What does the escrow service cost?

The cost of the escrow service is shared between buyer and seller. Both pay €99 (ex VAT) for secure handling of transactions up to €10,000. For transactions with a higher value, buyer and seller are both charged 1% of the total transaction amount.