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GunBroker Pay (BitRail) vs GunTab

What is GunBroker Pay?

GunBroker Pay is an alternative to GunTab. It requires users to convert dollars into a cryptocurrency called FreedomCoin, which can then be used for payments. It is build on top of a cryptocurrency platform called BitRail.

GunBroker Pay says it is "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."

Side-by-side comparison

GunBroker Pay (BitRail) GunTab
Allows gun-related transactions
All online
Universally compatible X
Credit card payments X
Bank account payments
Scam protection X
Chargeback protection X
Transaction automations X
Payment limit $5,000 No limit
Service fee 1.9% 2.9%

How good is GunBroker Pay?

GunBroker Pay seems better than checks and money orders. It does not expose your information like checks do, and is not as vulnerable to scams as money orders.

However, GunBroker Pay makes users vulnerable to various scams. Also, it is heavily limited in where and how it can be used.

Buyers vulnerable

GunBroker Pay does not have a protection program for scams. It simply allows you to ask the seller for a voluntary refund "after the transaction shows complete in your GunBroker Pay wallet". Obviously that won't be useful when a seller is disagreeable or a total scammer. GunBroker Pay notes an "additional resource that is available for you is the Gunbroker.com Buyer's Protection Program", however that program is insufficient and unpredictable.

Sellers vulnerable

Interestingly, GunBroker Pay markets itself as being better than money orders, but it actually increases the risk of chargebacks compared to money orders. Money orders aren't subject to chargebacks by the buyer. GunBroker Pay transactions are. That means GunBroker Pay will take back funds it has already transferred to the seller.

Which is better?

In most circumstances, GunBroker Pay isn't even an option. If you want transactions outside GunBroker, credit card payments, high-dollar transactions, scam protection, or chargeback protection then GunTab is the winner by default.

GunBroker Pay's only clear advantage is that it is 1% less expensive. That is a difference of $10 on a $1,000 transaction. Most people are willing to pay the extra $10 to fully protect their money, indicating that GunTab is the better choice overall.