Domain escrow is a process where a neutral third party holds the buyer's payment while a domain name is transferred from seller to buyer. The funds are only released to the seller once the transfer is independently verified. If the transfer fails, the buyer gets their money back.

This article explains exactly how the process works on SecureSwap, including the technical details of WHOIS verification and automated transfer monitoring.

Step 1: Deal Creation

The seller creates a domain escrow deal by entering the domain name (e.g., "coolstartup.in") and the agreed sale price. SecureSwap generates a secure invite link that the seller shares with the buyer.

At this point, no money has changed hands. The deal exists as a proposal.

Step 2: WHOIS Ownership Verification

Before the buyer can fund the escrow, SecureSwap verifies that the seller actually owns the domain. This is done by querying the WHOIS database.

What Is WHOIS?

WHOIS is a public protocol that stores registration information for every domain name on the internet. When you register a domain, your registrar submits your contact information to the WHOIS database. Anyone can query this database to find out who owns a particular domain.

How Verification Works

SecureSwap queries the WHOIS database for the domain name in the deal. We check the registrant name, organisation, and email against the seller's profile. If there's a match, ownership is confirmed. If the data is redacted (WHOIS privacy), the seller may need to temporarily disable privacy protection or provide alternative proof of ownership.

This step is critical because it prevents a common scam: someone listing a domain they don't own, collecting payment, and disappearing.

Step 3: Buyer Funds Escrow

Once ownership is verified, the buyer funds the escrow through Razorpay. Payment methods include UPI, debit cards, credit cards, and net banking — all in INR.

The funds are held by SecureSwap in escrow. The seller cannot access them. The buyer cannot withdraw them (except through cancellation or dispute). The money sits in a neutral holding state until the transfer is confirmed or the protection window expires.

A 4% platform fee is applied: 2% is added to the buyer's payment, and 2% is deducted from the seller's eventual payout.

Step 4: Domain Transfer

With escrow funded, the seller initiates the domain transfer. The exact process depends on the registrar:

Same registrar: The seller pushes the domain to the buyer's account within the same registrar (e.g., GoDaddy to GoDaddy). This is usually instant.
Different registrars: The seller unlocks the domain, obtains the EPP/auth code, and the buyer initiates a transfer at their registrar. This typically takes 1–5 days.

Step 5: Automated Transfer Monitoring

This is where SecureSwap's automation comes in. Once the deal is funded, SecureSwap begins polling the WHOIS database every 30 minutes to check if the domain's registrant has changed.

What We Check

Each poll queries the current WHOIS record for the domain and compares the registrant information against the buyer's details. When the registrant changes from the seller to the buyer, the transfer is considered complete.

Why 30-Minute Intervals?

WHOIS records don't update instantly. After a domain transfer completes at the registrar level, it can take anywhere from a few minutes to several hours for the WHOIS database to reflect the change. Polling every 30 minutes strikes a balance between timely detection and not overloading WHOIS servers.

Step 6: Resolution

The deal resolves in one of three ways:

Transfer Confirmed

WHOIS monitoring detects that the domain now belongs to the buyer. Funds are automatically released to the seller's bank account. Payout is processed within 24 hours.

Transfer Not Completed (7-Day Window)

If the transfer is not detected within 7 days of escrow funding, the buyer receives an automatic full refund. This protects against sellers who take payment but stall indefinitely on the transfer.

Dispute Raised

Either party can raise a dispute at any point during the deal. When a dispute is raised, the deal is paused — no funds move. Both parties submit evidence, and SecureSwap reviews the case and mediates a resolution.

The Audit Trail

Every action in a domain escrow deal is logged with timestamps: deal creation, WHOIS verification results, escrow funding, each WHOIS poll result, transfer detection, fund release, and any disputes or messages. This audit trail is available to both parties and serves as evidence in case of disputes.

Why This Matters

Without escrow and WHOIS verification, domain transactions rely entirely on trust between strangers. The seller could take payment and never transfer. The buyer could receive the domain and initiate a payment reversal. WHOIS verification prevents fake listings. Automated monitoring removes the need for manual confirmation. The 7-day protection window ensures the buyer isn't left waiting indefinitely.

Domain escrow turns a high-risk transaction into a safe, automated process.

How Domain Escrow Works: WHOIS Verification and Transfer Monitoring Explained