Flippa partners with Escrow.com to offer escrow services for Flippa transactions. Escrow is a secure payment method where the Buyer's payment is secured in a third-party account during the asset transfer process, and is strongly recommended for higher-value Flippa transactions. We will cover the below if you are using this payment method.
- Benefits to the Buyer and Seller
- Escrow Verification
- Inspection Duration
- Escrow Process
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.
If you have used Escrow before and already have an account, great! If your Flippa account email address is different from your Escrow account email, please update one or the other addresses to match. If you've already started a transaction, please reach out to us.
If you have not used it before Escrow will need to verify who you are before you can proceed to payment or receive funds.
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. This period can be altered if required, please contact us should a different timeframe be required.
Funding a Purchase
Once verified, a Buyer is provided details to fund escrow. Do be aware that they currently do not accept ACH payments and have strict limits on the use of credit/debit cards and PayPal. Non-bank services like Payoneer are currently unsupported.
Be aware that funds need to arrive under your same personal name or business name, i.e. the incoming wire transfer needs to match your details/business in Escrow.com per their payment options, etc.
Milestones & special requirements
Escrow.com offers the ability to have milestones or installment payments for a sale to allow for release of specified amounts as terms are met or items delivered. Should you have these requirements please let us know so we can set this up for you. Escrow.com also provides domain name holding services, if required.
The escrow process:
- Click on the Start with ESCROW.COM button in your listing's Deal Completion Area.
- The Buyer and Seller login to Escrow.com with their (or create a new) Escrow.com account.
- The Buyer and Seller agree to the transaction terms.
- The Buyer transfers funds to Escrow.com's account via standard wire transfer (please note ACH transfers are not currently accepted by Escrow.com). Card and PayPal payments are available for some customers.
- The Seller is notified once funds are received and secured in Escrow.com's escrow account.
- 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.
- Once the assets have been accepted by the Buyer, Escrow.com releases the funds via a bank/wire transfer to the Seller less fees. The transaction is then completed.
Seller Fees on Escrow.com are Flippa's Success Fee plus a $20.00 USD international wire transfer fee if the Seller's bank account is outside the USA.
Buyer Fees on Escrow.com include a 20% discount for Flippa customers when the transaction is created from the Flippa Deal Completion Area. A $25.00 USD inbound wire transfer processing fee applies to Buyer payments made via an international wire transfer.
Payment Processing Fee
2.6% ($10.00 minimum)
$130 + 0.21% of amount over $5,000