How Escrow.com Works
Whether buying or selling domain names, vehicles, or luxury merchandise, our 5-step legally binding process eliminates counterparty fraud by locking funds in neutral trust until goods are inspected.
Specs & return terms locked
FDIC-insured custody
Carrier tracking logged
1 to 30 days window
Zero chargeback risk
Buyer and Seller Agree to Terms
Either the buyer or seller initiates a transaction
- ✓Both parties agree to the price, merchandise specifications, and return terms.
- ✓Inspection period duration is selected (1 to 30 calendar days).
- ✓Escrow fee payment allocation is chosen (Buyer pays, Seller pays, or 50/50 split).
- ✓Both parties review and electronically sign the binding escrow terms.
Buyer Pays Escrow.com
Funds are verified and deposited into trust
- ✓The buyer submits payment via wire transfer, ACH direct deposit, or credit card.
- ✓Escrow.com verifies and confirms the receipt of cleared funds into an FDIC-insured trust account.
- ✓Once payment is verified, Escrow.com immediately notifies the seller that it is safe to ship.
- ✓Buyer funds remain strictly locked in neutral custody until full inspection acceptance.
Seller Ships Merchandise or Delivers Asset
Tracking or digital handover is logged
- ✓Upon payment confirmation, the seller ships the physical goods via an approved trackable carrier.
- ✓For domain names, software, or digital assets, seller begins authorized registrar or account push.
- ✓Seller submits the tracking number or transfer credentials to Escrow.com to verify in transit.
- ✓Buyer can trace shipment delivery status in real-time through the Escrow portal.
Buyer Inspects Merchandise or Digital Assets
Inspection clock begins upon verified delivery
- ✓The buyer receives delivery; the carrier electronic signature automatically starts the inspection clock.
- ✓The buyer has the agreed period (e.g. 3–5 days) to inspect the goods or verify domain title.
- ✓If the merchandise is satisfactory, buyer clicks 'Accept Merchandise' in their dashboard.
- ✓If there is any discrepancy, buyer can raise a dispute or return the item in original condition.
Escrow.com Releases Payment to Seller
Irrevocable disbursement to seller's account
- ✓Once the buyer accepts the inspection (or the inspection period elapses without dispute), Escrow.com initiates payout.
- ✓Funds are disbursed directly to the seller via domestic wire, international wire, ACH, or PayPal.
- ✓No chargeback risk: wire disbursements provide 100% final settlement to the seller.
- ✓Both parties receive official closing statements and transaction completion certificates.
Frequently Asked Questions
How long does the entire escrow process take?
The total timeline depends primarily on the shipping speed and your chosen inspection period. Bank wire verification usually completes within 1 business day. After delivery and buyer approval, funds disburse to the seller within 24 hours.
What happens if the buyer rejects the goods during inspection?
If the buyer rejects the item, they must ship it back to the seller using an approved, trackable carrier. Once the seller receives the returned merchandise in its original condition, Escrow.com refunds the purchase capital to the buyer.
How are buyer funds safeguarded in escrow?
All deposited funds are held in non-interest-bearing, segregated escrow trust accounts at FDIC-insured tier-1 institutions (such as JPMorgan Chase and Wells Fargo), strictly audited under California DFPI and state banking oversight.
Who pays the escrow closing fee?
The fee can be paid 100% by the buyer, 100% by the seller, split equally 50/50, or deducted from broker commissions. This is clearly specified and locked during step 1 before any money moves.
Ready to protect your next transaction?
Join over 3.9 million buyers and sellers who trust Escrow.com for high-value commerce.