Flippa partners with Escrow.com to offer escrow services for Flippa transactions. Escrow is a secure payment method where the Buyer's payment is in a third-party account during the asset transfer process, and is strongly recommended for higher-value Flippa transactions.

 

Benefits to the Buyer

When making purchases online, it is hard to guarantee that you’re getting what you pay for. The escrow process protects the Buyer to make sure that the Buyer can review the assets and confirm that they are as described before funds are released to the Seller.

The Buyer's funds secured in escrow are not released to the Seller until the Buyer is satisfied with the goods which they have received and Escrow.com has been notified to release funds, unless the Inspection Period has ended without response. If assets are not as expected, a resolved dispute can provide a refund from Escrow.com to the Buyer.

 

Benefits to the Seller

The Seller is notified by Escrow.com once they have received payment on the Buyer's behalf. This guarantees that as soon as the assets have been transferred and acknowledged by the Buyer, the Inspection Period begins. Once the Buyer confirms that the assets are as expected or the Inspection Period ends, payment will be released to the Seller. This avoids instances of having to chase Buyers for non-payment or erroneous claims from Buyers requesting refunds after assets were transferred. If assets are not as expected by the Buyer, a resolved dispute can allow the Seller to relist the assets on Flippa at no cost.

 

Inspection Period

The Inspection Period is the specified amount of time in which the Buyer may examine the assets after receipt:

  • 7 days for websites and web businesses
  • 3 days for apps
  • 2 days for domains

The Inspection Period begins when the Buyer marks the item as received. The Buyer must accept or reject the asset(s) within this period. If the Buyer does not accept or reject the asset(s) within this period, the funds are automatically released by Escrow.com to the Seller.

 

The escrow process:

  1. Click on the Start with ESCROW.COM button in your listing's Sale Completion Area
  2. The Buyer and Seller login to Escrow.com with their (or create a new) Escrow.com account.
  3. The Buyer and Seller agree to the transaction terms.
  4. The Buyer transfers funds to Escrow.com's account via a bank (ACH) or wire transfer. Card and PayPal payments are available for some customers.
  5. The Seller is notified once funds are received and secured in Escrow.com's escrow account.
  6. The Seller then transfers ownership and notifies Escrow.com. The Buyer has the duration of the Inspection Period to accept the assets and advise Escrow.com that they have been accepted.
  7. Once the assets have been accepted by the Buyer, Escrow.com releases the funds via a bank/wire transfer to the Seller less fees and the transaction is complete.
 

Buyer Fees on Escrow.com include a 20% discount for Flippa customers when the transaction is created from the Flippa Sale Completion Area:

Transaction Total 

Escrow.com Fee

Payment Processing Fee

$0-$5,000

2.6% ($10.00 minimum)

2.4%

$5,000.01-$25,000

$130 + 0.21% of amount over $5000

N/A

$25,000.01 +

0.71%

N/A

 
 
While Escrow.com is available for most customers, you can review what countries / regions are not supported by Escrow.com here. Escrow.com does not pay out to PayPal accounts or to accounts provided by non-bank remittance services such as Payoneer, TransferWise, Revolut, etc.
  
If you have any questions regarding an escrow transaction, including for transactions created with our previous Flippa Escrow offering powered by Assembly Payments, please contact us at escrow@flippa.com.
Was this article helpful?
241 out of 302 found this helpful

Comments

0 comments

Article is closed for comments.