We use ESCROW.COM for the domain transaction. In some cases we will use Paypal.
Since the Buyer pays Escrow.com and not the Seller, Escrow.com can withhold payment until we're satisfied the domain name has been transferred by the Seller. One of the ways Escrow.com does this is by checking the WHOIS database of the appropriate Registrar to make certain it properly reflects the new Buyer's name as the domain name Registrant. Once this has been verified, Escrow.com releases payment to the Seller.
After registering at Escrow.com, both parties agree to terms of the transaction, which includes the domain name(s) and sale price.
The Buyer submits a payment, selecting wire transfer or in some cases PayPal, credit card (American Express, MasterCard and Visa) or check/money order. Escrow.com verifies good funds and updates the website to prompt the seller to transfer the domain. Payment options and Process times vary.
After payment is secure, the seller is prompted to work with the buyer and the registrar to transfer the domain ownership to the buyer. Each domain registrar has a different procedure to transfer domain ownership.
The inspection period is started once the Buyer indicates control or Escrow.com confirms the WHOIS information reflects the Buyer's customer profile. The Buyer confirms full control through the registrar and accepts the domain on the Escrow.com site.
When Escrow.com can verify the domain has been transferred to the Buyer and the inspection period has ended, the Seller is paid. The transaction is complete.