Quick overview
Zoooom is a peer-to-peer marketplace. A sale settles in two parts:
- The buyer pays a secure online payment — up to $1,000 toward the car plus Zoooom's $100 service fee — by card, debit, pay-over-time, or bank wire.
- The seller receives that online amount instantly and in full, pushed to their debit card via Stripe Instant Payouts. Nothing is deducted for processing.
- The remaining balance is paid in person at the handoff — typically cash, or whatever the two parties agree to.
- Zoooom covers 100% of the payment processing fees, including the instant-payout cost, and collects only the $100 service fee.
The platform handles identity verification, ownership verification, in-app messaging, the structured deal flow, and dispute mediation. The seller hands over the vehicle, title, and keys in person when the balance is exchanged.
What buyers pay
A Zoooom purchase is settled in two parts — a secure online payment that locks the deal, and the balance in person at handoff.
Online, through Zoooom checkout, the buyer pays a single total covering:
- Up to $1,000 toward the vehicle price — a protected, deposit-style payment. (If the car costs $1,000 or less, this is the whole price.)
- Zoooom's $100 service fee — a flat fee per completed transaction that funds identity and ownership verification, payment infrastructure and processing, instant payouts, dispute mediation, and platform operations.
The buyer is never surcharged: Zoooom absorbs all payment processing costs, so you pay only the online amount plus the $100 fee, on any method. The remaining balance is paid in person at the handoff.
Example: an $8,500 car
| Line item | Amount |
|---|---|
| Online deposit toward the car (capped at $1,000) | $1,000.00 |
| Zoooom service fee | $100.00 |
| Buyer pays online | $1,100.00 |
| Balance in cash at handoff | $7,500.00 |
The full breakdown is shown in checkout before you confirm. No surprise fees are added after you click pay.
The online amount is capped at $1,000 toward the car
The amount that flows to the seller online is capped at $1,000 (plus the separate $100 fee). This deposit-style model is what lets Zoooom absorb every processing fee, pay sellers instantly, and keep chargeback exposure small. For anything above $1,000, the deposit is paid online and the balance is exchanged in person — the safest moment to move the bulk of the money, after you've inspected the car and confirmed the title.
What sellers get
When a buyer completes the online payment, you receive the full online amount — instantly, with nothing deducted for processing. Zoooom covers every fee, so the method the buyer chooses makes no difference to your payout:
- Credit / debit card — you receive the full amount; Zoooom covers processing.
- Pay over time (Klarna / Affirm) — the buyer pays in installments, but you're paid in full up front; Zoooom covers processing.
- Bank wire — you receive the full amount; Zoooom covers the wire fee. Available until 2 PM Pacific so it settles same day.
- Cash — for the in-person balance; no processing fee and no $100 platform fee on a pure cash deal.
Using an $8,500 car (so the online deposit is the full $1,000 cap), here's what you receive:
| Portion | Processing fee | You receive |
|---|---|---|
| Online deposit (any method) | $0.00 (Zoooom covers it) | $1,000.00 — instant |
| Balance in cash at handoff | $0.00 | $7,500.00 |
| Total to seller | $0.00 | $8,500.00 |
The $100 Zoooom service fee is paid by the buyer on top of the online amount, and is waived for a pure cash deal (Zoooom only facilitates verification and the deal workflow when no money flows through us).
Setting up to receive payments (sellers)
Before you can accept a buyer's payment, you need to set up a Stripe Express account. This is a one-time setup that takes about 5 minutes. Zoooom guides you through this in-app when you first list a vehicle, or before you accept your first offer.
You'll be asked to provide:
- Your legal name and date of birth
- Your address
- The last 4 digits of your Social Security Number (for tax-reporting purposes and identity verification — this is required by federal law)
- A photo of your government-issued ID
- An eligible debit card to receive instant payouts — instant payouts pay to a debit card, not a bank account number, so the money lands in minutes rather than days
Stripe (our payment processor) handles this verification. Your information is encrypted in transit and at rest and is not visible to Zoooom staff or to the buyer.
Tax forms (1099-K)
Stripe will issue you a 1099-K form if your annual proceeds through Zoooom exceed the IRS reporting threshold ($5,000 for 2024 transactions, decreasing to $2,500 for 2025, and $600 thereafter under current law). A single private-party car sale is typically below this threshold, but if you sell multiple vehicles in one tax year, expect a form. Zoooom does not provide tax advice — talk to a CPA if you have questions about how a private vehicle sale affects your taxes.
The deal flow, step by step
- Buyer browses listings on zoooom.me or the marketplace at marketplace.zoooom.me and finds a vehicle they like.
- Buyer and seller chat in-app to ask questions, share additional photos, schedule a viewing, and agree on a price.
- Both parties complete identity verification if they haven't already — driver's license capture, selfie face-match. The seller also verifies vehicle ownership using the registration.
- The buyer schedules an in-person meeting at a safe location to inspect the vehicle and complete the deal. Many buyers also arrange a pre-purchase inspection at a Zoooom-vetted mechanic.
- At the meeting, both parties tap "Confirm deal in progress" in the Zoooom app. Geolocation is logged for dispute evidence.
- The buyer pays the online amount through Zoooom checkout — up to $1,000 toward the car plus the $100 fee — by card, debit, pay-over-time, or wire.
- The seller is paid instantly. The online amount is pushed to the seller's debit card within minutes, in full, and both sides see confirmation in-app.
- The buyer pays the remaining balance in person (cash or agreed method), and the seller signs over the title and hands over the keys.
- Both parties tap "Confirm completion" in the Zoooom app, closing the deal and transferring the vehicle record to the buyer's garage.
- Title transfer with the state DMV is handled by the buyer and seller per state-specific procedures.
Read the full guides for buying a used car on Zoooom and selling your car on Zoooom.
Payout timing
- Instant payout to your debit card: Within minutes of the buyer completing the online payment, via Stripe Instant Payouts — any day of the week, including weekends and holidays. Zoooom covers the instant-payout fee.
- The in-person balance: Exchanged directly between buyer and seller at the handoff, so there's no processor timing at all.
- First-time setup: The very first payout may take a little longer while Stripe finishes verifying your new Express account; every payout after that is instant.
- Disputed transactions: If the online charge is disputed (chargeback), those funds may be reversed pending Stripe's investigation. Because the online amount is a bounded deposit, exposure is limited. See Refunds and disputes below.
Refunds and disputes
Vehicle sales on Zoooom are final once both parties confirm the handoff. Refunds may be issued in limited circumstances, including:
- Seller fraud or material misrepresentation of the vehicle.
- Failure to deliver after payment.
- Title fraud or undisclosed lien preventing the buyer from registering the vehicle.
- Unauthorized use of the buyer's payment method.
Read the full Refund & Dispute Policy for details on what's eligible, how to file a dispute, and the investigation timeline.
If a buyer disputes a charge directly with their card issuer (a "chargeback"), Stripe will notify both Zoooom and the seller. We submit evidence on the seller's behalf, including the verification records, in-app message history, and geolocation logs from the handoff — but the card issuer makes the final decision. Because the seller is the merchant of record, a successful chargeback may be debited from the seller; Zoooom reviews every chargeback case by case and reimburses the seller where warranted, though in some cases the seller may bear the risk.
Payment methods
The online payment can be made four ways — and on every one, Zoooom covers the processing fee, so there's never a surcharge to the buyer or a deduction from the seller. The balance at handoff is paid in person.
Credit & debit card
Visa, Mastercard, American Express, Discover. Includes Apple Pay and Google Pay as accelerated checkout options. Instant authorization and full card-network buyer protections. Zoooom covers processing.
Pay over time (Klarna / Affirm)
Eligible buyers split the online payment into installments while the seller is paid in full, up front. Approval and terms are set by the provider at checkout. Zoooom covers processing.
Bank wire
A bank-to-bank transfer for the online payment, available until 2 PM Pacific so it settles same day. No fee to either side — Zoooom covers the wire fee.
Cash (balance at handoff)
The in-person balance is typically paid in cash. No processing fee, and no $100 platform fee on a pure cash deal — both parties confirm completion in the app at the meeting.
Instant bank payments (RTP / FedNow)
The Federal Reserve's FedNow and The Clearing House's RTP network enable instant bank-to-bank payments. As coverage broadens, Zoooom will add them as another way to fund the online payment.
Common questions
Why do I only pay part of the price online?
The online payment is a protected deposit — up to $1,000 toward the car, plus the $100 fee — that locks the deal and pays the seller instantly. The rest is exchanged in person at the handoff, after you've inspected the car and confirmed the title. Keeping the online amount to a deposit is exactly what lets Zoooom absorb every processing fee, pay sellers instantly, and keep the safest moment to move the bulk of the money face-to-face. If the car costs $1,000 or less, the whole thing can settle online.
Who pays the payment processing fees?
Zoooom does — all of them. The buyer is never surcharged, and the seller's payout is never reduced. Zoooom even covers the ~1% Instant Payout fee. There's no haircut to price around: as a seller you keep every dollar of the online amount.
I'm a seller — how fast do I get paid, and to where?
Instantly, to your debit card. As soon as the buyer completes the online payment, Stripe Instant Payouts pushes the amount to your linked debit card — typically within minutes, any day of the week. You'll link that debit card once, when you set up your Stripe Express account. The remaining balance you collect in person at the handoff.
Why is bank wire unavailable in the afternoon?
Wires must be started before 2 PM Pacific so they can settle the same day, which is what keeps the seller's payout instant. After the cutoff, the wire option is hidden and you'll use card, debit, or pay-over-time instead.
My card was declined — what do I do?
Call the number on the back of your card and let your bank know you're authorizing a vehicle purchase through Zoooom, then retry. If it still declines, try a different card or contact support. (Because the online amount is a bounded deposit, most fraud-filter declines that used to hit whole-car charges no longer apply.)
What if I'm a seller and I get a chargeback on the online payment?
Notify support@zoooom.app immediately. We'll submit our verification records and in-app evidence to Stripe to contest it on your behalf. Because the online amount is a small deposit rather than the whole price, exposure is limited. We also recommend filing a police report if you suspect fraud.
Can I sell to a buyer in a different state?
Yes, though state-specific title transfer and registration rules vary. Both parties are responsible for understanding their state's requirements. Long-distance handoffs add some complexity — consider meeting at the midpoint.