Introducing Bike Hub Pay: Buyer & Seller Protection

We're excited to announce the launch of our buyer and seller protection service. Bike Hub Pay is a new payment service which offers peace of mind by allowing you to transact safely and securely.

How Bike Hub Pay Works

 

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Buying with Bike Hub Pay


It all starts with spotting your dream bike on Bike Hub, but you might be hesitant to pull the trigger? Buying via Bike Hub Pay means your payment is held securely by us until you receive the bike.

 

If it does not arrive or is not what was described, no problem! Simply let us know, return the bike (if applicable) and we will refund your payment.

 

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Selling with Bike Hub Pay


Bike Hub Pay will increase the number of potential buyers as Hubbers outside of the sellers region can now trade remotely with greater confidence. Increased demand means quicker sales and the best possible selling price. Buyers will be able to pay via EFT or Credit Card*.

 

Sellers, you can now enable Bike Hub Pay when listing your items for sale. All Bike Hub Pay enabled adverts are highlighted with a Pay shield. Buyers can make an offer to purchase directly from the advert page.

 

*Only for amounts up to R50 000, additional fees apply.

 

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Fees


Once the buyer has confirmed receipt of the item Bike Hub will make payment to the seller. A nominal fee of 3% of the sale price (a minimum of R100) applies to successful transactions and is deducted from the amount paid to the seller.

 

As we continue to build on the Bike Hub Pay offering we'll review the fee structure to ensure it better accommodates lower value items.

 




53 Comments

Furbz, Nov 30 2020 07:38

Oh this service is gold. Well done!

TheoG, Nov 30 2020 07:59

 

We're excited to announce the launch of our buyer and seller protection service. Bike Hub Pay is a new payment service which offers peace of mind by allowing you to transact safely and securely.


Click here to view the article

 

 

Unfortunately, there is a lot of entities trolling the web with no honest & pure intensions.

 

This excellent, thanks guys.  Will provide protection for both buyer and seller ...   :thumbup:

 

PS: I suppose you cant make it mandatory?

DR ◣◢, Nov 30 2020 08:18

Excellent!
The 3% fee is small price to pay for peace of mind.

I assume you can then set the negotiated price before the buyer makes payment?

If the buyer is using a credit card the seller will pay a higher fee to offset the card fees. How will the seller know that this is what the buyer used for payment?

Nick, Nov 30 2020 08:22

Thanks for the positive feedback. We're really excited to finally get this out.
 

PS: I suppose you cant make it mandatory?

 
We have no plans to make it mandatory. Buyers can always elect to avoid sellers who refuse to use it.

Our current thinking is that a free-to-use classifieds for private users is important for the continued success of Bike Hub.
 

I assume you can then set the negotiated price before the buyer makes payment?

 

In most cases, we're assuming that sellers and buyers would have agreed on a price in their discussion/negotiations before initiating the Bike Hub Pay deal.

Even so, the Seller can reject an offer from a Buyer if it does not meet their expectations with a note to the Buyer giving the reasons. The Buyer can then make an amended offer. So yes, there is a some negotiation built into the process.
 

If the buyer is using a credit card the seller will pay a higher fee to offset the card fees. How will the seller know that this is what the buyer used for payment?

 
The buyer using the credit card will pay the additional fee, not the seller. We're also hoping to bring this credit card fee down a little bit as the service grows.

Jewbacca, Nov 30 2020 08:43

yeeeow!

 

This is awesome. Less 'oil rig' threads and more 'ready for shreddy' threads!

Pure Savage, Nov 30 2020 08:49

This is great! Well done Bikehub!!

MrJacques, Nov 30 2020 08:54

This is cool, I've often hesitated to buy something due to the risks involved.

 

This seems to provide more protection for the buyer than seller, which is understandable. What happens if the buyer doesn't confirm delivery? Can the seller provide the courier's records?

Nick, Nov 30 2020 09:02

This seems to provide more protection for the buyer than seller, which is understandable. What happens if the buyer doesn't confirm delivery? Can the seller provide the courier's records?

 

Although, not yet automated on our system. In the case of dispute about delivery, we will confirm the delivery time with the courier and if more than 48 hours has passed, we will confirm the delivery. Unless the Buyer has good reason for the delay that all parties are happy to accept.

The Seller is required to enter courier tracking details before they can proceed to mark the item as Shipped, which is shared with the Buyer too.

MrJacques, Nov 30 2020 09:07

Although, not yet automated on our system. In the case of dispute about delivery, we will confirm the delivery time with the courier and if more than 48 hours has passed, we will confirm the delivery. Unless the Buyer has good reason for the delay that all parties are happy to accept.

The Seller is required to enter courier tracking details before they can proceed to mark the item as Shipped.

 

One possible snag is that I've seen that couriers often let anyone sign for a parcel, often not asking for ID.

 

Anyway, this escrow service is cool and should help with sales :)

Marsh00, Nov 30 2020 09:15

Great news, being able to buy stuff from outside my regional pool with confidence...

Matt, Nov 30 2020 09:24

One possible snag is that I've seen that couriers often let anyone sign for a parcel, often not asking for ID.

This could be a snag, but in a scenario where a parcel is said to be delivered (by the seller and /or the courier) we'd open a dispute and hold the funds while resolution / investigation is in progress. 

The 48 hour window Nick describes above would really be a fail safe in the event that a buyer goes completely silent, doesn't confirm delivery, hasn't raised any disputes and is uncontactable. In that scenario, we'd release the funds to the seller 48 hours after confirmed delivery.

Shebeen, Nov 30 2020 09:26

If the buyer is using a credit card the seller will pay a higher fee to offset the card fees. How will the seller know that this is what the buyer used for payment?

You can transfer funds via EFT or Credit Card* with Bike Hub Pay.

*Additional fees do apply where a deal is funded via Credit Card.

TheoG, Nov 30 2020 09:28

Do you have a target date when it will be up and running?

 

Edit:  Nevermind, look like it already is.

Dexter-morgan, Nov 30 2020 09:29

I think it brilliant, however I have not bought items that were more than R3000 which would make the R100 minimum Charge, otherwise brilliant system.

GhostSixFour, Nov 30 2020 09:29

What if buyer uses CC and does a charge back?

Andrew Steer, Nov 30 2020 09:31

Brilliant offering that is much needed... and great that it is all in house. Well done

Dieter ( ͡° ͜ʖ ͡°), Nov 30 2020 09:37

I think it brilliant, however I have not bought items that were more than R3000 which would make the R100 minimum Charge, otherwise brilliant system.

Yeah that seems in line with most escrow offerings. TradeSafe's and Standard bank's is R115, Paysho R69, Truzo R29. 

The percentage fee is much higher than the sliding scales other escrow places have. The highest starting at 1.5%

If anything is remotely fishy these services should be used and it's great that it's built into the platform.

Nick, Nov 30 2020 09:39

I think it brilliant, however I have not bought items that were more than R3000 which would make the R100 minimum Charge, otherwise brilliant system.

 

We're hoping to offer a more affordable fee for cheaper items in time. At the moment, we are intentionally focussing on the higher value items. Currently we need to improve scale and efficiencies to drop the minimum fee. We also need to test the service in the wild before confidently opening it up to the higher volumes that a lower fee for cheaper items will inevitably bring.

Matt, Nov 30 2020 09:42

What if buyer uses CC and does a charge back?

Chargebacks are a risk we considered. Most card companies would require that the buyer has already lodged a dispute with the merchant (Bike Hub in this case). 

Where a charge back is requested the card company would investigate and we'd have the opportunity to provide proof of delivery on the transaction as agreed between the parties. We're confident that we'd have sufficient proof of this to demonstrate that a chargeback request is unreasonable.

Matt, Nov 30 2020 09:50

Yeah that seems in line with most escrow offerings. TradeSafe's and Standard bank's is R115, Paysho R69, Truzo R29. 

The percentage fee is much higher than the sliding scales other escrow places have. The highest starting at 1.5%

If anything is remotely fishy these services should be used and it's great that it's built into the platform.

This is a fair point regarding the fees and where you compare this to the standalone escrow offerings we will be more expensive. Bike Hub is providing more than just a protected payment service, we offer the listing platform too allowing buyers & sellers to meet.

A better comparison though would be with the likes of eBay, or locally BidorBuy. In these marketplaces a success fee of 8-10% applies before any transaction fees, which typically includes some form of transaction protection.

That said, we are considering approaches to ensure the fees remain reasonable across the price bands. As Nick mentioned above, the R100 minimum does make it less attractive for lower value items at present but we'll address this in time.

Users will be free to use other services, but we're confident Bike Hub Pay will provide greater convenience and an all-round better experience. 

 

Sid the Sloth, Nov 30 2020 10:16

This is awesome!!! I have chewed people's ear off about something like this on many a ride... I have had great experiences with fellow hub users but I know there are some bad apples out there. Next up is a deal with a courier service where we get a small discount and you guys can charge a small commission for the set up... I have spent far too much money at Postnet. 

 

Good job guys.

Matt, Nov 30 2020 10:20

This is awesome!!! I have chewed people's ear off about something like this on many a ride... I have had great experiences with fellow hub users but I know there are some bad apples out there. Next up is a deal with a courier service where we get a small discount and you guys can charge a small commission for the set up... I have spent far too much money at Postnet. 

 

Good job guys.

Thanks! 

Courier integration is next up on the road map. We expect this will be key to the broader success of the service to super charge the convenience factor.

Sid the Sloth, Nov 30 2020 10:22

Thanks! 

Courier integration is next up on the road map. We expect this will be key to the broader success of the service to super charge the convenience factor.

If you guys ever need a student to help out around the office hit me up... I am free from today until mid March  :whistling:

Hairy, Nov 30 2020 04:07

Well played Bikehub Team

morneS555, Nov 30 2020 04:14

You mean we can shop on the other side of the mountain now ??

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