One minor annoyance I have with Escrow.com is that a buyer can choose to pay via credit card, and his choice can cost me an additional fee when I have agreed to pay half or the full escrow fee. It’s a bit frustrating to expect to pay $162 on a $5,000 deal only to find out the buyer used a credit card and the fee increased to over $300.
For the most part, this fee is a simple inconvenience. However, there have been quite a few times I sold a domain name at a fairly low profit margin and the increased fee makes that margin even more slim. When going into escrow on a smaller deal, I always cross my fingers that the buyer would send a wire transfer and be assessed the standard fee rather than paying double because he chose to use a credit card.
Based on customer feedback, Escrow.com has made a change to the way it charges customers who use a credit card. Instead of having the seller pay the extra fee for credit card purchases (or having the seller pay half on a split fee transaction), the buyer will now need to pay this “convenience fee” for being able to use a credit card for the purchase. This makes sense because using a credit card may make it more convenient for the buyer, and the buyer should have to pay for that added convenience rather than having the seller pay for something that isn’t his choice.
Commenting on why the company made the change, Keith Gettle, Customer Service Manager at Escrow.com stated, “We listened to our customers in the domain community and this was the right thing to do. We encourage all our users to make suggestions on how to improve our products.”
This convenience fee wasn’t that big of a deal, but I would rather have the money in my pocket than have it go elsewhere. If you have any suggestions for Escrow.com – or other companies in the domain investment business for that matter – it can pay to mention it to them and suggest an improvement.