Domain escrow protects both buyer and seller by holding funds until the domain transfers. Learn how the escrow process works, what it costs, and how to avoid domain fraud.
A domain purchase is a transaction between two strangers, often for thousands of pounds, involving an asset that transfers digitally. That is exactly the situation fraud thrives in — which is why escrow exists. This guide explains what domain escrow is, how it works step by step, what it costs, and how it protects you whether you are buying or selling.
Escrow is a neutral third party that holds the buyer's payment until the domain has been transferred to them. The seller knows the money is secured before they release the name; the buyer knows their funds are only released once they actually control the domain. Neither side has to trust the other — they both trust the escrow agent.
Escrow fees are typically a small percentage of the sale price, often in the low single digits, and taper as the amount rises. The fee can be paid by the buyer, the seller, or split — this is agreed up front. For a significant purchase it is trivial insurance against losing the entire amount to fraud.
Never transfer a domain or send money without escrow on any meaningful transaction. It costs a fraction of the sale and removes the single biggest risk in domain trading — dealing with someone you cannot verify.
Every purchase through PremiumDomain.me is escrow-protected as standard, so you never have to arrange it yourself. New to buying? Read our step-by-step guide on how to buy a premium domain, or see how the whole process works on our How It Works page.
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