Quick summary
- Payment method at launch
- Credit card — processed securely through Stripe
- Zoooom service fee
- $100 flat per transaction, every payment method, paid by buyer at checkout. Already included in the listed price of every vehicle on the marketplace.
- Credit card surcharge
- 3% added on top of the vehicle price — only when paying by credit card; never on debit, bank transfer, or real-time payments
- Maximum per transaction
- $10,000
- Funds released to seller
- Immediately once both buyer and seller confirm handoff in the app
- Available in
- California only (5-month launch period)
- Coming next
- Bank transfer (ACH) and real-time payments (RTP / FedNow), each with the same $100 service fee and no surcharge. We'll update this page when each goes live.
1. Why we start with credit card
Zoooom is launching payments with a single rail: credit card. There are two reasons we chose to start here, even though credit card is the most expensive payment method to process.
Instant authorization protects sellers. When a buyer's card is approved, the funds are reserved on the spot — we know within seconds that the money is real and available. Bank transfers (ACH) take three to four business days to clear, and during that window the payment can still bounce for insufficient funds. By starting with credit card, Zoooom can release funds to the seller the moment buyer and seller confirm handoff, with confidence that the payment will actually clear.
Card-network protections cover both sides. Credit card payments come with built-in dispute resolution, fraud protection, and chargeback recourse from Visa, Mastercard, and American Express. These networks have spent decades building the infrastructure that makes high-value online purchases safe. Zoooom layers its own escrow and identity verification on top, but the card-network rails are a useful base to build on.
Bank transfer and real-time payments are coming — see section 9 below. For now, every Zoooom transaction is paid by credit card.
2. The Zoooom service fee, explained
Every transaction on Zoooom includes a $100 flat service fee paid by the buyer at checkout. It's the same regardless of vehicle price and the same regardless of payment method. When bank transfer (ACH) and real-time payments (RTP / FedNow) launch later, those transactions will carry the same $100 fee — never more, never less.
The service fee covers:
- Identity verification (KYC) of both buyer and seller
- VIN-level vehicle ownership verification
- Document authentication and forgery checks
- The escrow infrastructure that holds your money safely until handoff is confirmed
- Title transfer support and the in-app Deal Center where buyer and seller close the deal
- Customer support before, during, and after the transaction
- Chargeback and dispute defense (Zoooom absorbs the cost, not the seller)
Most peer-to-peer marketplaces charge a percentage that scales with the car's price — a 5% fee on a $30,000 car is $1,500. Zoooom's flat $100 fee means a $9,000 used Honda Civic is charged exactly the same as a $4,000 commuter. The work to verify a buyer, seller, and vehicle is roughly the same regardless of price, so the fee should be too.
In line with California's Honest Pricing Law (SB 478, effective July 2024), the $100 service fee is included in the displayed price of every vehicle on the Zoooom Marketplace. A car listed at "$10,100" reflects a $10,000 vehicle price plus the $100 Zoooom service fee — you'll see the breakdown when you tap into the listing, and again at checkout. No surprises at the final screen.
3. The 3% credit card surcharge — what it is and why
Zoooom adds a 3% surcharge to the vehicle price at checkout. This is the standard way US merchants pass through credit card processing costs and is permitted under both Visa and Mastercard network rules (which cap surcharges at 3%).
Card networks (Visa, Mastercard, American Express) charge merchants a fee on every credit card transaction — typically 2.0% to 3.5% of the transaction amount, depending on the card type. Premium rewards cards (the ones that pay you cash back or miles) carry the highest fees because someone has to pay for those rewards. Zoooom's flat 3% surcharge passes that cost through to the buyer.
The surcharge amount in dollars will be shown on screen before you confirm the payment, and again on your receipt. You always know exactly what you're paying before you commit.
The 3% surcharge applies only to credit cards. Debit cards (Visa Debit, Mastercard Debit, etc.) are not surcharged — that's both federal law (the Durbin Amendment) and card network rules. If you pay with a debit card at checkout, you pay only the vehicle price and the $100 service fee.
4. The $10,000 transaction limit
During our California launch period, Zoooom enforces a per-transaction limit of $10,000. This applies to the vehicle price — the $100 service fee and 3% surcharge are calculated on top.
Why the limit? Two reasons:
- Credit card chargeback exposure. Card disputes can be filed up to 120 days after a transaction. Capping individual transactions at $10,000 limits Zoooom's worst-case exposure during the launch period.
- Card-issuer transaction limits. Many credit cards have built-in daily or per-transaction spending limits below $10,000. Setting our cap at $10,000 keeps most transactions below issuer-side limits, reducing declined-payment friction for buyers.
For vehicles priced above $10,000, you have two options today:
- Negotiate a partial payment. Buyer and seller can agree to a $10,000 portion paid through Zoooom (covered by Zoooom's full protections) plus a separate off-platform payment for the remainder. We strongly recommend the off-platform portion be a cashier's check delivered at handoff — never cash for amounts above a few thousand dollars.
- Wait for bank transfer. Once bank transfer (ACH) is enabled, the per-transaction limit will rise substantially. See section 9.
We expect to raise the $10,000 cap once we've validated the chargeback and dispute flows in California. We'll update this guide when the new limit takes effect.
5. Settlement — when sellers actually get their money
This is the question every seller asks, and Zoooom's answer is unusually simple: funds are released to the seller's bank account immediately once both buyer and seller confirm in-person handoff in the Zoooom app.
Here's the full sequence:
- Buyer pays. Buyer authorizes payment at checkout. The card is charged and funds enter Zoooom's escrow account immediately. The buyer's purchase is fully protected from this moment.
- Both parties meet in person. Buyer inspects the vehicle. Seller hands over the keys, signed title, and a bill of sale. Both parties open the Zoooom app and tap "Confirm handoff."
- Zoooom releases funds. The moment both confirmations are recorded, Zoooom releases the vehicle price to the seller's connected bank account.
For most US banks, money received via Zoooom appears in the seller's account within minutes to a few hours of the handoff confirmation. The exact timing depends on the seller's bank — some institutions post incoming transfers instantly, others batch them through the day. Most sellers see the funds within an hour.
Most peer-to-peer car marketplaces hold seller funds for 7 to 14 days after handoff — ostensibly to handle disputes, but really because they don't trust their own verification process. Zoooom releases immediately because we've already verified the buyer's identity, the seller's identity, and the vehicle's ownership before either party reaches the Deal Center. By the time you meet, the risk has been engineered out of the transaction.
What if the handoff doesn't happen?
If only one party confirms handoff — or neither does — the funds stay in Zoooom escrow. Either party can open a support case from the Deal Center to either complete the handoff or refund the buyer. We typically resolve these within one business day.
Chargebacks and reversals
If a buyer pays by credit card and later disputes the charge with their card issuer (a "chargeback"), Zoooom responds to the dispute with the documentation collected during the transaction — KYC records, VIN verification, the in-app handoff confirmation, signed bill of sale, and any messages between buyer and seller. Because Zoooom releases funds to sellers immediately on handoff, in the rare case of a successful chargeback Zoooom absorbs the cost, not the seller. Sellers keep their money.
This is part of what the $100 service fee pays for: Zoooom takes the chargeback risk so individual sellers don't have to.
6. Worked examples
Example A: $5,000 commuter car
| Vehicle price | $5,000.00 |
| 3% credit card surcharge | $150.00 |
| Zoooom service fee | $100.00 |
| Total charged to buyer | $5,250.00 |
| Released to seller on handoff | $5,000.00 |
Example B: $8,500 Honda Civic
| Vehicle price | $8,500.00 |
| 3% credit card surcharge | $255.00 |
| Zoooom service fee | $100.00 |
| Total charged to buyer | $8,855.00 |
| Released to seller on handoff | $8,500.00 |
Example C: $10,000 vehicle (at the cap)
| Vehicle price | $10,000.00 |
| 3% credit card surcharge | $300.00 |
| Zoooom service fee | $100.00 |
| Total charged to buyer | $10,400.00 |
| Released to seller on handoff | $10,000.00 |
Example D: Debit card on a $5,000 vehicle
| Vehicle price | $5,000.00 |
| Surcharge (debit cards are not surcharged) | $0.00 |
| Zoooom service fee | $100.00 |
| Total charged to buyer | $5,100.00 |
| Released to seller on handoff | $5,000.00 |
Debit cards are accepted at checkout and are not subject to the 3% surcharge. If you have a debit card with sufficient available funds and no per-transaction limit from your bank, it can be the cheapest way to pay on Zoooom today.
7. Security, escrow, and dispute protection
Your payment information is never stored on Zoooom servers
When you enter your card details at checkout, they go directly from your device to Stripe via an encrypted, PCI-compliant connection. Zoooom never sees your full card number. We receive only a tokenized reference and a confirmation of payment success.
Escrow during the deal
From the moment a buyer authorizes payment until both parties confirm handoff, funds are held in Zoooom's escrow account at our regulated payments partner. The buyer cannot withdraw the funds back unilaterally, and the seller cannot access the funds until the handoff is confirmed by both parties. This protects both sides from the most common P2P car-sale scams.
Identity and ownership verified before checkout
Before either party can complete a transaction, Zoooom has already verified:
- The buyer's identity via driver's license scan and selfie match (KYC)
- The seller's identity using the same process
- The seller's ownership of the vehicle via VIN, license plate, and document authentication
What happens if something goes wrong at handoff
If the car doesn't match the listing, if the seller can't produce a clean title, or if either party feels unsafe completing the deal, do not tap "Confirm handoff." Instead, tap "Report an issue" in the Deal Center. Funds stay in escrow, and Zoooom support investigates within one business day. Most issues resolve into either a completed deal (after clarification) or a clean refund to the buyer.
Card-issuer protections layered on top
Because every transaction is paid by credit card, buyers also benefit from card-network and card-issuer protections that apply automatically: fraud monitoring, $0 fraud liability on most US cards, the right to dispute charges that don't match the merchant's description, and often built-in purchase protection or extended warranty coverage from premium card issuers. Check with your card issuer for the specifics of what your card covers on a used vehicle purchase.
8. California disclosure
SB 478 (Honest Pricing Law) compliance
California's SB 478, effective July 1, 2024, requires that all mandatory fees be included in the displayed price of a product or service. Zoooom complies as follows:
- The $100 mandatory Zoooom service fee is included in the headline price displayed for every marketplace listing. When you see a price on a vehicle card, that price already includes the service fee — no add-on at checkout.
- The breakdown (vehicle price + service fee) is shown on the listing detail page and again at checkout, so you always know exactly what you're paying for.
- The 3% credit card surcharge is optional (it only applies if you choose credit card) and is disclosed before you select your payment method.
Credit card surcharge disclosure
Zoooom complies with California's transparency requirements for credit card surcharging:
- The 3% credit card surcharge is disclosed before you enter card details at checkout.
- The exact dollar amount of the surcharge is displayed on the payment confirmation screen before you commit.
- The surcharge is itemized separately on your receipt.
- The surcharge applies only to credit cards and is never applied to debit cards.
- The surcharge never exceeds Zoooom's actual cost of credit card acceptance.
Zoooom has provided the required 30-day advance notice to Visa and Mastercard before initiating surcharging on our platform.
9. Coming soon: bank transfer and RTP / FedNow
Bank transfer (ACH)
Bank transfer is the cheapest way to move money in the United States and will eventually be a payment option on Zoooom. We're holding it back for two reasons specific to the launch period:
- Settlement timing. ACH payments take three to four business days to clear through the banking network. To keep our "release on handoff" promise on bank transfers, Zoooom needs to float the seller's funds from its own balance until the buyer's ACH clears — and we want that float capital fully provisioned before we offer it. We're not there yet, and we'd rather wait than make a promise we can't keep.
- Returned-payment risk. ACH payments can be returned by the buyer's bank for up to 60 days for unauthorized debits and up to several business days for insufficient funds. We're building additional fraud and verification controls specifically for ACH before we turn it on.
When bank transfer launches, it will carry no surcharge (only the $100 service fee), and the per-transaction limit will be significantly higher than $10,000.
RTP and FedNow (real-time payments)
The US is in the middle of rolling out two new real-time payment networks: RTP (operated by The Clearing House since 2017) and FedNow (operated by the Federal Reserve since 2023). Unlike ACH, which clears in batches over a few business days, RTP and FedNow move money between bank accounts in seconds, 24 hours a day, every day of the year — including weekends and holidays.
RTP and FedNow are also final: once a payment clears, it cannot be reversed by the sender's bank. That eliminates the float and chargeback problems that delay ACH adoption, and makes RTP and FedNow ideal for high-value peer-to-peer transactions like a car sale.
Zoooom's payments partner is currently building RTP and FedNow support, and we expect to add real-time bank payments as an option once both buyer-side and seller-side coverage is broad enough to be useful (right now, not every US bank supports receiving RTP/FedNow yet). When that ships, sellers who choose RTP/FedNow will see funds arrive in their bank account within seconds of handoff confirmation, including on a Saturday afternoon or Sunday morning.
We'll update this guide and notify users in-app when bank transfer and real-time payments go live.
10. Frequently asked questions
Why are payments only available in California right now?
We're running a five-month soft launch in California to validate every part of the payment flow — identity verification, fund release, chargeback handling — before we open to other states. California is a high-volume car market with sophisticated consumers and clear regulatory rules around surcharging, which makes it an ideal proving ground. We'll announce the rollout to additional states as soon as the California launch is stable.
Who pays the $100 service fee — buyer or seller?
The buyer pays it at checkout. The seller receives the full vehicle price with nothing deducted. We chose this structure because buyers are already evaluating multiple cars and deciding what to spend; sellers should never get fewer dollars than they listed for.
Can I split the $100 fee with the seller?
Not at checkout, but you and the seller are free to negotiate a slightly lower vehicle price to reflect any fee-sharing arrangement. Just agree to it in writing in the Deal Center before either party confirms handoff.
What if the car is priced above $10,000?
You can pay $10,000 of the vehicle price through Zoooom (fully protected) and the remainder via cashier's check at handoff. Or you can wait for bank transfer to launch, which will support higher transaction amounts. We don't recommend cash for amounts above a few thousand dollars — it's too easy for either party to dispute later.
What happens to the surcharge if I get a refund?
You get the full surcharge back. If the transaction is canceled before handoff and the buyer is refunded, the entire amount paid — vehicle price, surcharge, and $100 service fee — is returned. Refunds typically appear on a credit card statement within 5–10 business days, depending on the issuer.
Does my credit card's purchase protection or extended warranty apply to a used car?
That depends on your card issuer's terms. Many premium cards offer purchase protection for items bought with the card, and some extend the manufacturer's warranty. Used vehicles are sometimes excluded from these benefits — check with your issuer before relying on it. This is one of the main reasons buyers choose to pay by credit card on Zoooom despite the 3% surcharge.
I'm a seller. How fast will I actually get my money?
The moment both you and the buyer tap "Confirm handoff" in the Zoooom app, we release the vehicle price to your connected bank account. Most US banks post the incoming transfer within minutes, though some batch incoming credits and post once or twice per day. Plan for "same day" rather than "instant," but it's typically faster than that.
What if the seller cancels after I've paid?
You get a full refund — vehicle price, surcharge, and service fee. The funds never reach the seller until both parties confirm handoff, so a seller cancellation simply triggers an automatic return to your original payment method.
Can I use a foreign credit card?
Foreign-issued cards may be accepted at the discretion of the card networks but typically incur an additional foreign-transaction fee on Zoooom's side. We recommend US-issued cards for the cleanest experience. If your card is rejected at checkout, please contact support — we may be able to authorize the transaction manually.
Why don't you support cash or crypto?
Cash exchanges between buyer and seller bypass Zoooom's protections entirely — no escrow, no identity verification, no dispute support, no way to recover funds if something goes wrong. We strongly recommend against cash for any P2P car purchase. We have no plans to support cryptocurrency payments; the regulatory and chargeback environment for crypto-based vehicle purchases isn't where it needs to be yet.
When will bank transfer (ACH) be available?
We don't have a public date yet. We need to provision the seller float capital and harden our fraud controls before turning it on. Realistically, expect bank transfer within the next several months. Subscribe to Zoooom updates or check back here — we'll announce it when it ships.
When will RTP / FedNow be available?
RTP and FedNow are being rolled out across the US banking system, but not every bank supports receiving real-time payments yet. Our payments partner is building this support now. We'll enable it as a Zoooom payment option once enough buyer and seller banks support it to make it a viable choice.