ConradS, you do raise some valid points here.
To begin with let me clarify my earlier statement. A seller not wanting to use Bike Hub Pay outright is not necessarily a cause for alarm and certainly doesn't mean they're a scammer. As I mentioned earlier, we know there are many long-time users who have a string of good reviews and are savvy with respect to payments, etc. For this reason it is optional.
What might cause some alarm is where a seller accepts a Bike Hub Pay offer, only to then attempt to push the transaction offline. The reasons for that might well be legitimate, but even then it's a poor experience for buyer & seller - rather disable to Bike Hub Pay option altogether.
Bike Hub Pay solves for two primary risks:
The seller's risk of a fraudulent payment (despite it being a simple one to solve in waiting for an EFT to clear, we still see people being caught here)
The buyer's risk of receiving nothing after making payment, i.e. outright scam (this is the most common issue we see)
Once we are over those two hurdles we've ruled out the plainly bad actors, but then the more nuanced risks like you highlight do come into play. e.g.
Buyer receives something that's not as described/advertised
Shipment is lost or damaged in transit
Unscrupulous buyer fraudulently claims item received was damaged
#1 is something we've seen the most of, but to-date any disputes of this nature have been amicably settled, either via a return and refund or a part-refund. Of 1060 deals agreed to date we've had 22 refunds/part-refunds due to this.
#2 is a risk that's ideally solved through insurance. Unfortunately most couriers don't offer insurance on second hand goods or insurance they do offer has relatively low value limits and can be prohibitively expensive. Of 1060 deals agreed to date we've had 2 instances of items being lost/destroyed in transit. We are exploring options here to address this and offer better protection in this regard.
#3 is not an issue we've yet encountered, but a risk we'd noted when we first conceptualised Bike Hub Pay. In a case like this where we encounter an unresolvable dispute the matter would be referred to the relevant court. Bike Hub would hold the funds pending the outcome of any legal proceedings or a settlement between the parties. In our view, this alone is a suitable deterrent, but of course if it were to occur it is not a scenario a seller would want to find themselves in where money is tied up for a long period.
What we have seen in many peer-to-peer marketplaces abroad is a hybrid approach to their payments and buyer/seller protection:
New sellers are subject to an escrow style deal or delayed payouts until such time as they've completed a suitable number of deals and established a reputation.
Established sellers work on a more e-commerce style model, where they receive payouts within a few days of the transaction (regardless of delivery status).
Effectively the marketplace itself is then taking on the risk of non-performance on the part of the established or vetted seller and they typically offer buyer protection (i.e. refund guarantees) up to a set value.
We are exploring options around this to improve the appeal for established sellers, while still reducing risk for a buyer.