GunBroker Pay vs GunTab
Buyers were not safe with GunBroker Pay because it offered little or no protection. Please note: GunBroker Pay no longer exists.
What is GunBroker Pay?
GunBroker Pay was an alternative to GunTab. It required users to convert dollars into a cryptocurrency called FreedomCoin, which could then be used for payments. It was build on top of a cryptocurrency platform called BitRail.
GunBroker Pay said it was "fast and convenient" and "can help you reduce the risk of fraud, additional expenses, and delays that can be caused by using checks and money orders."
Do scammers use GunBroker Pay?
It's not clear if scammers used GunBroker Pay. As indicated by StopGunScams.com, GunBroker Pay was rarely if ever an accepted payment method for gun scams. However, that was possibly because it was a new platform that was not widely known. Like most payment platforms, it did not protect against scams.
|Guns & ammo allowed||✓||✓|
|Gun parts allowed||✓||✓|
|No amount limit||✓||X|
|Service fee||2.9% or less||1.9%|
|Fee on success only||✓||X|
How good is GunBroker Pay?
GunBroker Pay seemed better than checks and money orders. It did not expose your information like checks do, and was not as vulnerable to scams as money orders.
However, GunBroker Pay made users vulnerable to various scams due to its lack of a protection policy. Also, it was heavily limited in where and how it could be used. Some users even struggled to set up an account.
GunBroker Pay did not have a protection program for scams. It simply allowed you to ask the seller for a voluntary refund "after the transaction shows complete in your GunBroker Pay wallet". Obviously that wouldn't be useful when a seller was disagreeable or a scammer. GunBroker Pay noted an "additional resource that is available for you is the Gunbroker.com Buyer's Protection Program", but with that program buyers always lose money to scammers.
Interestingly, GunBroker Pay marketed itself as being better than money orders, but it actually increased the risk of chargebacks compared to money orders. Money orders aren't subject to chargebacks by the buyer. GunBroker Pay transactions were. That meant GunBroker Pay would take back funds it has already transferred to the seller.
Which is better?
Unless you were buying or selling on GunBroker, GunBroker Pay wasn't an option. If you want to buy or sell elsewhere, or if you want credit card payments, high-dollar transactions, scam protection, and chargeback protection, then GunTab is the winner by default.
GunBroker Pay's only clear advantage was that it was 1% less expensive. That is a difference of $10 on a $1,000 transaction. Most people were willing to pay the extra $10 to fully protect their money, indicating that GunTab is the better choice overall.