Escrow.com vs. Afternic vs. PayPal: Fee Breakdown

When it comes to buying or selling domain names, choosing the right payment and transaction platform is critical to protecting both parties and ensuring a smooth transfer. Beyond trust and reliability, one of the most important aspects of this decision involves understanding the fees involved. Each service—Escrow.com, Afternic, and PayPal—offers different benefits, protections, and fee structures. The differences in how these platforms calculate and apply fees can significantly affect the final amount received by the seller or paid by the buyer, especially in high-value transactions.

Escrow.com is a dedicated online escrow service that acts as a neutral third party between buyer and seller, holding the funds securely until the domain has been successfully transferred. It is one of the most widely trusted platforms for domain transactions, particularly for medium to high-value sales where risk mitigation is a priority. Escrow.com’s fees are based on a sliding percentage scale depending on the transaction size, starting at 3.25% for transactions up to $5,000. As the transaction amount increases, the percentage decreases incrementally. For example, a transaction of $10,000 would incur a fee of 2.75%, and transactions above $25,000 can be negotiated for even lower custom rates. There is also a minimum fee of $10. If the parties choose to split the escrow fee, each party pays half of the total amount. Escrow.com also charges additional fees for optional services, such as wire transfers, domain name holding, or transaction customization. The platform offers excellent security by ensuring that domain ownership changes before releasing funds, but the process is slightly slower than direct payments, often taking several days due to verification and compliance checks.

Afternic operates differently, functioning primarily as a domain marketplace that also handles sales logistics and payments. Its fees are not tied to payment processing in isolation but are built into the commission structure for sales conducted through its platform or distribution network. For domains sold directly through the Afternic marketplace, the standard commission fee is 15% of the sale price. However, when a domain is sold through the Afternic Premium Network—which includes reseller partners like GoDaddy and Network Solutions—the commission can increase to 20%. These fees include payment processing, buyer support, transaction facilitation, and transfer assistance. Sellers who list domains on Afternic should be aware that pricing their domains must account for this relatively high commission. Unlike Escrow.com, Afternic does not offer escrow-style protection by default but relies on its internal infrastructure and partnerships to manage transfers securely. The benefit of using Afternic lies in its reach and exposure, but for those conducting private sales or custom-negotiated deals outside of its network, it is not typically the first choice for simply handling the money movement.

PayPal is a widely recognized payment platform known for its speed and simplicity, often used in informal domain transactions or between parties with an existing relationship. While PayPal is fast—payments can clear in minutes—its fee structure and protection mechanisms are not ideal for high-value or high-risk domain sales. Standard domestic transactions incur a fee of 2.9% plus a fixed fee of $0.30 per transaction. International transactions carry an additional 1.5% cross-border fee, making the effective cost as high as 4.4% plus currency conversion charges. Furthermore, PayPal’s seller protection policy explicitly excludes digital goods, including domain names. This means that in the event of a dispute or chargeback, the seller has limited recourse, even if the domain was successfully transferred. Buyers can also reverse payments in certain scenarios, placing the seller at significant risk. For small transactions between trusted parties, PayPal remains a popular option due to its low friction and widespread adoption. However, its lack of dedicated escrow features, high effective fees for international deals, and weak protections for intangible goods make it less suitable for large-scale or anonymous domain sales.

Comparing these three services side by side, Escrow.com offers the most robust transaction protection and flexible pricing for high-value deals, though with a slightly slower and more formalized process. Afternic integrates the entire sales process, including promotion and transfer logistics, but charges a premium for access to its network, making it most suitable for sellers looking to maximize exposure rather than control costs. PayPal, while convenient and fast, carries risks that outweigh the benefits in many domain transactions, particularly when no prior relationship exists between the buyer and seller.

Ultimately, the choice between Escrow.com, Afternic, and PayPal depends on the size of the transaction, the level of trust between the parties, and the desired balance between cost, speed, and security. Sellers looking for peace of mind and full protection tend to gravitate toward Escrow.com. Those leveraging the power of a global marketplace often turn to Afternic despite the higher commissions. Meanwhile, buyers and sellers who already know each other and need a rapid, no-frills transaction may choose PayPal, fully aware of its limitations. Understanding these fee structures and operational nuances is essential for navigating domain transactions successfully and ensuring that neither party ends up with less than they bargained for.

When it comes to buying or selling domain names, choosing the right payment and transaction platform is critical to protecting both parties and ensuring a smooth transfer. Beyond trust and reliability, one of the most important aspects of this decision involves understanding the fees involved. Each service—Escrow.com, Afternic, and PayPal—offers different benefits, protections, and fee…