Avoid domain name scams with escrow

Published: 06th April 2011
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Reselling domain names online can be very profitable. Merchants are often willing to pay large sums of money to obtain the perfect domain name for their site. But dealing in domain names can become a risky business if you are not well-versed in methods to shield yourself from phony purchasers. There are times when people will try to trick you into transferring the domain name to them without shelling out any money in exchange - usually those who intend to resell the domain name to other parties in turn. If you don't take sufficient protective measures, you can be victimised by one of these bogus purchasers.

One way to defend yourself when reselling domain names online is to use a domain name escrow service. An escrow service ascertains that neither you nor the consumer has access to the domain name and the payment simultaneously so that both of you can be assured about the deal. With an online escrow site, you will still advertise your domain names on your own web site or an auction site, but when a prospective buyer offers to get hold of one of your domain names you complete the transaction on the escrow site where it can be handled securely. The escrow firm makes certain both shopper and seller are protected and contented.

A domain name escrow service shields you by securing payment from the buyer before ownership of the domain name is transferred. Escrow services charge a modest fee for listing your exchange with them and they function as a neutral third party in the deal. Instead of sending money to you directly, the purchaser deposits money to the escrow service which then retains the payment until the consumer sends notice that the domain name has been transferred. The escrow service will double-check that the payment is authentic and not a spurious remittance before notifying you to transfer ownership of the domain name. Once the purchaser notifies that the domain name has been conveyed successfully, the escrow service will relinquish custody of the funds in your favour.

This method of reselling domain names secures the consumer as well because you don't receive payment until transfer of ownership has taken place. You don't have to fret about charge backs, bad checks, or fabricated payments and the buyer doesn't have to fret about whether he'll get his domain name after having transferred money for it. In most cases, the higher level of confidence that purchasers have when using a domain name escrow service leads to more sales and higher-value sales, which mean more profits for you.

From time to time, an crooked purchaser will attempt to cheat you of domain names by utilising a spurious escrow service. The bogus site fraudulently informs you the buyer has remitted a payment and authorizes you to transfer the domain name. Because it's a bogus service, you end up with no money and with no more control over the domain name. If a purchaser insists on using an escrow service for the purchase, satisfy yourself about its authenticity. Search web evaluations, articles and directory listings to be sure the business is real. You can also look at the listings in a WHOIS database to confirm the owner of the web address is the escrow service. Also make sure the site has a URL (address) that commences with "https://," which indicates the site is protected.

One well recommended domain name escrow service is PayPrimo.com. This escrow service not only has modern security measures, like minimum 128-bit data encryption and modern security defences to safeguard your data, but it also features a dispute resolution service to provide a medium where you and the shopper can work things out if a problem comes up. Authentic domain name escrow services, like PayPrimo.com, also use easy-to-understand and traceable money transfer options, like credit and debit cards.

Your online escrow experience will also be greatly enhanced if your escrow service provides features like multiple payment options, including credit cards, debit cards, and wire transfers, along with detailed help guides, step-by-step transaction instructions, and a user-friendly and versatile interface. If you are vending domain names to parties in other countries, also ensure your escrow service accepts and conveys payments in multiple currencies, particularly EUR, USD and GBP, like PayPrimo does. In addition to sophisticated security and easy-to-use features, PayPrimo also features an affiliate program that makes it simple to use PayPrimo with all your online transactions.

PayPrimo's website will give you more information about domain name escrow and how internet escrow works. Learn more about domain name escrow for sellers here.

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