Last night on Domain Boardroom, I learned that domain name sellers and domain brokers can now use Payoneer Escrow for domain name deals with payment plans. At the present time, this includes domain sales using payment plans where the buyer pays over time. I understand the company intends to add additional types of domain name deals in the future.
Brandon Abbey explained how it works and what it costs to set up a holding transaction with Payoneer:
“Sellers and Brokers can initiate transactions. There is an initial down/first payment amount of at least $100. Escrow fee is paid over the term of the transaction, not upfront as others require. What does it cost? Our standard escrow fee amortized over the term and the buyer pays a $20/month holding fee.”
I think the main best part of this news is that the escrow fee is paid over the term rather than upfront. One issue with paying up front is that if the buyer doesn’t end up completing the transaction, especially in the case of deals where the first payments are smaller or the deal is very large over a long period of time, the escrow fees could eat up the initial payment(s). When the escrow fee is paid out over the deal term, it means more revenue for the seller at the beginning of the transaction.
As I mentioned last week, Payoneer Escrow is offering 50% off of transactions started in April.