The escrow company is the intermediary party that facilitates the transfer of a domain name between a buyer and seller. Like in other industries, escrow companies are used in transactions of high valued items. In this case - domain names. Here's the basics of how a domain escrow company works. First, the buyer and seller come to an agreement and the terms are laid out on contract set up through the escrow company. Next, the buyer has to prove that they have the funds to cover the purchase, so they deposit the full amount in the escrow company's bank account. The escrow company holds the money in their account, while the seller begins the domain transfer. Once the domain has been successfully transferred to the buyer, the buyer confirms receipt of the domain, and then the funds are released to the seller.