Quick overview
Zoooom is a peer-to-peer marketplace. When a deal closes:
- The buyer pays the seller's agreed price plus Zoooom's $100 platform fee in a single charge.
- The seller receives the agreed price in their own Stripe Connect account, minus the credit card processing fee that Stripe deducts at the time of payment.
- Zoooom collects only the $100 platform fee. Zoooom does not hold the seller's money.
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 at the time of payment.
What buyers pay
At checkout, the buyer is charged a single total that covers two components:
- The agreed vehicle price — what the seller is asking, as negotiated between the buyer and seller in-app.
- Zoooom's $100 platform fee — a flat fee per completed transaction. This funds identity and ownership verification, payment infrastructure, dispute mediation, and platform operations.
The buyer is not charged an extra processing fee on top of the listed price. The credit card processing fee is deducted from the seller's payout, not added to the buyer's charge.
Example: a $25,000 car
| Line item | Amount |
|---|---|
| Vehicle price (per listing) | $25,000.00 |
| Zoooom platform fee | $100.00 |
| Buyer pays | $25,100.00 |
The full breakdown is shown in checkout before you confirm the charge. No surprise fees are added after you click pay.
Credit/debit card limit: $25,000 per charge
Credit and debit card payments are capped at $25,000 per transaction — this applies to the amount charged to the card (the vehicle price, or the card portion of a split deal, plus the $100 fee). If a card charge would exceed $25,000, the card option is unavailable at checkout. For pricier vehicles you can either split the deal (pay part in cash at the handoff so the card portion stays under $25,000) or use Instant Bank Payment (Stripe Link) or bank wire, which have no such limit. Note: this is a Zoooom platform limit; the $100 flat fee applies to any Zoooom-facilitated payment regardless of method.
What sellers get
When you accept an electronic payment through Zoooom, Stripe deducts its processing fee from the transaction before depositing your funds. This is how virtually all card-processing platforms work for marketplace sellers. The exact fee depends on which payment method the buyer uses:
- Credit / Debit Card — 2.9% + $0.30
- Instant Bank Payment (via Stripe Link) — 2.9% + $0.30 (same rate as a card; Stripe-guaranteed, instant settlement)
- Bank wire transfer — no processing fee for you — Zoooom covers the Stripe wire fee. You receive the full agreed price. (Zoooom's $100 flat fee still applies, as with any payment through Stripe.) The most secure rail for a high-value vehicle.
- Cash (100%) — no processing fee, and no $100 platform fee (the only method with no platform fee)
Using a $25,000 car example, here's what you net under each method:
| Method | Stripe fee | You receive |
|---|---|---|
| Credit / Debit Card | −$728.20 | $24,271.80 |
| Instant Bank Payment (via Link) | −$728.20 | $24,271.80 |
| Bank wire transfer | $0.00 (Zoooom covers it) | $25,000.00 |
| Cash | $0.00 | $25,000.00 |
The $100 Zoooom platform fee is paid by the buyer on top of the listing price for card, Instant Bank Payment, and bank wire transfer, and is waived for cash (Zoooom only facilitates verification and the deal workflow when no money flows through us).
- Accept the haircut — list at the price you want, knowing you'll net ~97–97.4% of it on a card or Instant Bank Payment. Most sellers do this because broader payment acceptance dramatically widens the qualified-buyer pool.
- Gross up your listing — list slightly higher so the net after processing equals your target. For a $25,000 target on cards, list at around $25,750.
Once accepted by Stripe, your funds appear in your Stripe Connect balance immediately. Stripe transfers them to your linked bank account on its standard payout schedule (typically 2 business days after the charge clears).
Even lower-fee options on the way
RTP / FedNow (instant bank-to-bank payment at near-zero fees) is on our roadmap and will be enabled as soon as Stripe supports it for marketplaces. See the What's coming next section for details.
Setting up to receive payments (sellers)
Before you can accept a buyer's payment, you need to set up a Stripe Connect 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
- The routing number and account number for the bank account where you'd like to receive funds
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 through Zoooom checkout. Their card is charged the full amount including the platform and processing fees.
- The seller receives instant confirmation that funds have been received in their Stripe Connect account.
- The seller signs over the title and hands over the keys.
- Both parties tap "Confirm completion" in the Zoooom app.
- 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
- Funds in your Stripe Connect balance: Immediately at the time of charge. The seller can see the balance in their Zoooom dashboard right after the buyer pays.
- Funds in your bank account: Typically 2 business days after the charge clears. Stripe's first payout to a new Connect account may take a few extra days while the account is fully verified.
- Weekend and holiday delays: Card settlements and bank transfers don't run on weekends or federal holidays. A Friday-night sale may not appear in your bank account until Tuesday or Wednesday.
- Disputed transactions: If a charge is disputed (chargeback), the funds may be reversed pending Stripe's investigation. 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.
What's coming next
We start with credit cards because that's what most sellers and buyers are most comfortable with. We are actively working on these additional payment options:
Credit cards
Visa, Mastercard, American Express, Discover. Includes Apple Pay and Google Pay as accelerated checkout options. 2.9% + $0.30 processing fee, paid by the seller.
Instant Bank Payment (via Stripe Link)
Buyers pay from a saved bank account through Stripe Link. Stripe-guaranteed (no failed-payment risk) and instant settlement like a card, at the same 2.9% + $0.30 processing rate as a card. The advantage is reliability and speed, not a lower fee.
Bank wire transfer
For higher-value vehicles, buyers can send a wire transfer to a Zoooom-issued account at the time of payment. Carries the same $100 Zoooom platform fee as other electronic methods, and no wire processing fee for the seller — Zoooom covers the Stripe wire fee, so the seller receives the full agreed price. Settlement is typically same-day once the wire is received (initiate before 2 PM PT); both buyer and seller still confirm handoff in the Zoooom app before funds release.
Cash
For in-person handoffs. No processing fee and no $100 Zoooom platform fee — both parties just confirm completion in the Zoooom app at the meeting.
Klarna pay-over-time
For eligible buyers, split your purchase into installments. Available through our Stripe integration on qualifying transaction amounts. Subject to Klarna's approval and limits.
Instant bank payments (RTP / FedNow)
The U.S. Federal Reserve's FedNow and The Clearing House's RTP network enable instant bank-to-bank payments. As Stripe rolls these out for marketplace use cases, Zoooom will offer them as a lower-cost alternative to card payments — especially attractive for high-value vehicles.
Optional escrow holds
For higher-value or longer-distance deals where buyer and seller want extra protection, hold funds until both parties confirm satisfaction.
Common questions
Why is the credit card fee so high on a $25,000 car?
Card processing is a percentage of the transaction (2.9% + $0.30). On large purchases this adds up — it's the same reason most car dealerships either don't accept credit cards or limit the amount you can charge. The fee is paid by the seller, not added to the buyer's charge. We display it transparently in the seller's listing flow and on payout so there are no surprises. Instant Bank Payment via Stripe Link (2.9% + $0.30, the same rate as a card) is also live today — it's a Stripe-guaranteed bank payment with instant settlement, and sellers can opt into accepting both card and Instant Bank Payment in the listing wizard. For a genuinely lower fee, bank wire carries no seller processing fee at all (Zoooom covers it).
I'm a seller — how do I price my car to account for the processing fee?
Two common approaches:
- Accept the haircut. List at the price you'd be happy to receive, knowing you'll net ~97% of it after Stripe's fee. Most sellers do this because card acceptance lets buyers commit instantly with no escrow back-and-forth, dramatically widening your qualified-buyer pool.
- Gross up your listing. To net a specific target after Stripe's fee, list at
(target + 0.30) / 0.971. For a $25,000 target, list at $25,750.51 (round to $25,750). Note that pricing too far above market may slow your sale.
Listing pricing is your decision. Zoooom shows you the expected net before you publish.
Can I pay with multiple cards?
Not at this time. Stripe checkout supports a single payment method per transaction. If you'd like to split a payment across multiple cards, contact Zoooom support before initiating the deal so we can advise.
My card was declined — what do I do?
Most card declines on large purchases are caused by your bank's fraud filters, not by Zoooom. Call the number on the back of your card and let them know you're authorizing a vehicle purchase through Zoooom. Then retry the payment. If it still declines, try a different card or contact support.
How do I see what I'll be paying as a seller?
Open the deal in your Zoooom dashboard. The "Payout estimate" section shows the buyer's total, the platform fee (paid by the buyer), the processing fee (paid by the buyer), and your net payout (the full agreed vehicle price).
What if I'm a seller and I get a chargeback after I've handed over the car?
Notify support@zoooom.app immediately. We will submit our verification records and in-app evidence to Stripe to contest the chargeback on your behalf. We also recommend filing a police report if you suspect the chargeback is fraudulent.
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 using an escrow service or arranging a meeting at the midpoint.