[swarmee]

BGS charges people when cards are received, then takes over a year to grade them and send them back.

PSA only charges in advance for PSA/DNA autograph authentication submissions, AFAIK. Card grading submissions are charged at the end before being sent back. This, to me, is the preferable way. At least they're not holding thousands of your dollars while also holding hundreds of your cards.

If PSA graded the cards and then lost them before mailing them back to you, I don't think they'd have a leg to stand on if the tried to charge you for grading fees. Maybe you would need to pay, however, in order to allow for their insurance policy (or self-insurance policy) to pay out on their failure.

If PSA graded the cards, mailed them to you, and they were lost in the mail, you would have also paid the grading fees and therefore recoup the declared value from the insurance policy, hopefully. But PSA performed their job and it was of no fault that the cards didn't get to you. So they should get paid for doing their piece.

If PSA graded the cards, mailed them to you, and they were stolen from your doorstep, then the fault lies with the thief and PSA still gets paid. The USPS or UPS doesn't pay out on the insurance policy, and you file a police report and hope they show up later. If this is a worry, make sure to have the packages directed to a trustworthy mailbox service or front desk at an office.

Those are my thoughts.