How Escrow Payments Work and How to Use Them | Safe Payment Methods to Prevent Problems in Peer-to-Peer Transactions

When purchasing animals online, the greatest concern is troubles like "I paid but the product didn't arrive" or "the animal I received doesn't match the description." Particularly in peer-to-peer transactions, advance payment by bank transfer is often required, and the risk of fraud is ever-present. The most reliable way to avoid this problem is to verify the animal in person before paying. This article explains the risks associated with different payment methods and how to proceed for safe transactions.

Payment Timing Determines Risk

The risk in animal transactions ultimately comes down to "which comes first—the payment or the animal—to reach the other party."

• If the buyer pays first: the buyer bears the risk of non-shipment
• If the seller ships first: the seller bears the risk of non-payment

In C-to-C online transactions, a third party sometimes holds payment temporarily in a method called "escrow payment" to eliminate this asymmetry. However, there is another solution for animal transactions: the method of verifying the animal in person and handing over payment at the point of transfer. For mammals such as dogs and cats, birds, and reptiles, the Animal Welfare Law requires in-person verification and explanation before transfer, so this process is naturally built into the legal framework. This is why BreederDirect does not hold payment and leaves payment methods to be determined between the parties.

Comparison of Safety with Bank Transfers

Bank transfer is the most common payment method in peer-to-peer animal transactions, but it carries serious risks.