PayPal vs GunTab
What is PayPal?
PayPal is an alternative to GunTab. It is a payment platform that transfers money from one party to another. It offers two main services:
- "Friends and Family" ("F&F"). This service is free, so does not include Purchase Protection.
- "Goods and Services" ("G&S"). This service costs 3.49% + fixed fee, which pays for Purchase Protection (unless the payment violates PayPal policy).
|Allows gun-related transactions||X||✓|
|Credit card payments||✓||✓|
|Bank account payments||✓||✓|
|Payment limit||$10,000||No limit|
|Service fee||3.49% + fixed fee||2.9%|
How good is PayPal?
PayPal is a very popular way for people to handle payments online. But it prohibits gun-related transactions and makes users vulnerable to various scams.
Guns, ammo, parts, and accessories prohibited
Like all the payment platforms, PayPal strictly prohibits gun-related transactions. It says: "You may not use the PayPal service for activities that ... relate to transactions involving ... ammunition, firearms, or certain firearm parts or accessories". (In practice, "certain firearm parts or accessories" means all of them, because any of them can be interpreted as violating the policy.) If PayPal catches you violating its policy, it will permanently ban you and may even seize your money and that of your family members.
Buyers are completely vulnerable to scams on guns, ammo, parts, and accessories. Even if you pay the fee for Purchase Protection, you are not eligible because "PayPal Buyer Protection does not cover ... products that violate PayPal policies".
Even when you aren't violating PayPal policies, users report PayPal buyer protection is really unreliable.
Sellers are vulnerable to chargebacks on every payment. PayPal says "If you receive a payment for selling goods or services that is later refunded or invalidated for any reason, you are responsible for the full amount of the payment sent to you plus any fees (including any applicable chargeback fee or Dispute fee)." That can happen if buyer issues a chargeback or files a dispute. Also, "payments to you may be invalidated and reversed by PayPal if ... You received the payment for activities that violated this user agreement".
And it gets worse. PayPal threatens: "If you are a seller and receive funds for transactions that violate the Acceptable Use Policy, then in addition to being subject to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 U.S. dollars per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal's actual damages"
Which is better?
In short, using PayPal for guns, ammo, or accessories is a big mistake. You have no protection from scams or chargebacks, and you even put your money at risk of being seized by PayPal. GunTab costs less, is totally safe, and even helps you complete your transactions. GunTab is clearly the better choice.