Domain name transactions can be risky if the counterparty is unknown. Cryptoexchange.io ensures that transactions are quick and secure. Our platform is home to licensed and bonded escrow services. With escrow, the Buyer and Seller greatly minimize the risks that come with online purchases.
We can distill the process down into five simple steps.
How does escrow work?
- 1Buyer and Seller register for an account on Cryptoexchange.io and agree to the terms of the transaction. Terms must include the sales price and domain name or names.
- 2Buyer sends the payment to Cryptoexchange.io, and the Seller transfers ownership of the domain in a holding account based on the agreement terms. Cryptoexchange.io will verify the payment and notify the Seller that they can transfer the domain name.
- 3The domain name is transferred to the Buyer, who informs Cryptoexchange.io that they have received the domain. Buyers will get a brief inspection period unless they state that the exchange will verify its validity.
- 4The Buyer accepts the domain, and Cryptoexchange.io confirms that the domain is received.
- 5Cryptoexchange.io disburses funds to the Seller, and the user's dashboard is updated to complete.
How the domain transfer works
Purchasing a domain through a cryptocurrency escrow service is slightly different than buying any other good or service. Escrow services are typically required to add an extra step to verify that the domain registrant information reflects the Seller. If the information does not reflect the Seller, Cryptoexchange.io will ask to verify the domain's control before listing it on the exchange. For added peace of mind, some Buyers may decide to perform a trademark search to confirm that the Seller's domain is in possession.
The process may vary in length but ultimately depends on how quickly the Registrar can transfer the Buyer's domain name. In most cases, the Registrar will transfer ownership in a few minutes. However, in complicated cases, Buyers can expect this process to take a few weeks.
Dealing with the domain registrar
Sellers typically will not be required to transfer the domain to the Buyer's Registrar. In most cases, after the transaction has occurred, the Buyer can transfer the domain to the Registrar of their choosing. The Buyer should select "Reject" if they cannot verify they have complete control of the Seller's domain.
Some Buyers and Sellers prefer Cryptoexchange.io to complete the transfer of their domain and deal with the domain transfer as a part of the services offered. In this case, Cryptoexchange.io can manage funds received and the domain in their secure accounts and complete the transfer of both.
If the Seller does not initiate the transfer within a reasonable time frame, the Buyer can request a cancellation by contacting customer support. Once Cryptoexchange.io cancels the transaction, the Buyer will receive all the funds held in escrow except for the escrow fee.
The buyer inspection period
Within every escrow transaction, Buyers receive an inspection period. An inspection period is a specified amount of time that both parties agree to examine the domain once received. The time frame can range from 1-30 days or longer in rare situations. Cryptoexchange.io counts days starting from the moment the Buyer hits "Accept." However, suppose the Buyer does not hit "Accept" on the transaction, and the designated inspection period runs out. In that case, the funds will be disbursed to the Seller as specified in the agreement.
If the Buyer hits "Reject," Cryptoexchange.io will help facilitate the return of the domain. The Seller will receive a short inspection period to determine if the returned item is in acceptable condition.
Fees for using Cryptoexchange.io escrow services
Fees are dependent on the transfer taking place. Please contact us for exact pricing.