Buying a prospect sight unseen (I know, I know) that’s located cross country. I’ve only bought locally so far, so I’ve always paid cash. What is the most secure way to pay the seller? I won’t be meeting the seller, as the shipper will be picking the pony up and dropping it off. Thanks in advance! Also, at what point would I transfer the money? Prior to pickup day? Day of pickup? After shipper loads horse?
Wire transfer.
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PayPal, as a business transaction.
I wouldn’t expect to pay at a time different than any other horse sale - prior to or day of pickup.
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Troll?
I’ve purchased site unseen from the race track a state away (yes I have a brain, also yes it malfunctions sometimes) and have used PayPal each time. Never any issues.
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One of the best things about Paypal is that if the horse never makes it to you (whatever reason), you can file with Paypal and possibly eventually get the money back. I’d recommend checking on the rules to be sure of what the buyer’s coverage is on a transaction of this size.
There will be a considerable Paypal fee for a payment as large as buying a horse. But think of it as insurance on the transaction. The chance to file a claim and have the transaction reviewed, and possibly reversed, is a major service that Paypal has brought to the business of financial transactions.
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Why would it be a troll? People do buy sight unseen and need to pay for it. I second (third? fourth?) Paypal Business transaction. Yes there is a fee but it’s the safest option.
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I did a wire transfer for my my mare who was halfway across the country. The shipper called me when she arrived at the farm, I transferred the funds, and the mare was loaded as soon as the seller received the wire.
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I’ve used Xoom for international transfers; wire transfer for my horse I imported. Depending on the price I’d probably go with a bank to bank wire transfer.That to me would be the safest
Wire transfers are the most secure transfers you can make but you should realize they are not reversible- even if there is an issue, the Fed cannot undo a completed wire so be sure of your instructions (call the seller and confirm over the phone after they email you so you know that the email wasn’t changed by a fraudster). I would have your shipper or other uninterested third party confirm the horse in person before you send the wire
I used Paypal and then put the transaction on my credit card (versus linking the transaction to my checking account). Though I did not have any issues, I figured one of them would help me get my money back if needed.
I"ve used PayPal and Wire
I’ve used TransferWise wire transfers for international (Canada) and Zelle for domestic. (both sight unseen transactions). I sent payment for the horse as soon as the Bill of Sale was signed by both parties. IMO it’s risky to send the day-of shipper arrival because sometimes payments are not processed until the next business day.
If I were the seller, the horse wouldn’t step foot on a trailer until funds were received.
I used e-transfer from my bank account online, this was for within Canada. I had a signed bill of sale and I paid the seller well in advance to the horse getting on the trailer.
Wire transfer.
Wire transfer completed before the shipper gets there but paperwork faxed immediately, signed and returned. It’s often not credited to sellers account immediately even during regular business hours it can take an hour or more and a commercial shipper picking up and dropping off all day is not going to wait around for a transfer to clear. Even a private shipper just doing that horse won’t appreciate hanging around a minute longer then necessary. Ties up seller too, all ready, wrapped and waiting, all dressed up with nowhere to go.
You can buy shipping insurance. Not all sellers have a Pay Pal account or want one.
I goes without saying that most sellers won’t release the horse without payment.
Paypal, while affording some benefits to buyers, often charges sellers a fee and the proceeds can be delayed.
Best thing is to work out the payment with the seller ahead of time.
Wire transfers are popular as noted up thread. They are fast and there are many benefits for both buyer and seller.
As a seller, a horse won’t leave our care until the funds are in the bank account. We have had to make shippers wait in our parking lot while the funds cleared. This is annoying for everyone all around, but is what can happen when a buyer fails to get all the ducks in a row
I used a wire transfer for my site unseen horse purchase. Additional bonus is it’s very easy to trace if you need to prove you paid the seller on X date with Y amount for the horse for an insurance claim on mortality. I paid as soon as the bill of sale was faxed back and forth with all signatures.
In my case, the seller arranged (and included) shipping for me and the sales contract included the horse being housed at her expense for seven days after the sale until shipping was arranged.
In my case, it was an OTTB reseller who has hundreds of horses through her place, with several friends who had positive experiences and lots of reviews, so I was comfortable with the risk, process, and reputation of the seller.
We sell a lot of horses and ponies each year. Almost all of them are purchased off of videos. Before our buyers send any money, we always make sure we have a purchase agreement contract in place first that is signed by both the buyer and seller. I would never sell or buy a horse without a contract.
We always transfer funds via bank to bank through wire transfer. Note that it can take 1-3 business days for money to show up in the sellers bank account using this method, so this needs to be kept in mind when booking shipping. As another poster mentioned above, the last thing we want is a shipper having to wait because the funds haven’t arrived yet or having to reschedule their trip. As a result, we make sure shipping pick up date is booked well after the money transfer date. All of our clients know from the beginning that we do not let any horse/pony leave the property unless they have been paid for in full.
As a side note, we do not use PayPal due to the extra fees added to the purchase. I also do not like that the buyer can file a PayPal dispute. We have always prided ourselves in finding the best match between horse and rider, but I have heard of several horror stories from close friends in regards to buyers filing a PayPal dispute over horse sales and stallion services even though the buyers were apparently happy with their purchases.
I actually did this a couple of weeks ago. I used PayPal for a deposit and then bank transfer the next business day for the balance. Seller emailed me the bill of sale. I used a shipper recommended by the seller, and paid her deposit via PayPal too. The whole process worked surprisingly smoothly.
