Digital peer-to-peer payment platforms are great for splitting dinner with friends. But when two parties need to exchange large amounts of money during a car sale, most payment platforms fall short.
We’ll walk you through the advantages and disadvantages of digital payment methods for car sales, and we’ll introduce you to a new option that beats them all.
PayPal allows users to transfer money through a smartphone app or via the PayPal website.
The seller and buyer set up an account linked to their bank account, debit card, or credit card. Sending money is as simple as entering the seller’s email or phone number and the amount. The seller usually receives payment instantly and can hold funds on the platform or transfer them to a bank account.
PayPal takes a 2.9% + $0.30 cut for goods and services. This means on a $20,000 car purchase, the seller is looking at $580.30 in fees. With so many other payment options available, most sellers will be less than thrilled with this and will look to pass these on to the buyer.
The platform also caps out at $60k, so if you’re doing a deal larger than that, you’re out of luck.
Venmo is a mobile payment app owned by PayPal. It’s popular for splitting bills and paying friends.
After linking a bank account or debit card to their Venmo accounts, buyers can send money to contacts by phone number or email.
Venmo is free for most transactions but slaps a 3% fee on credit card payments. The big problem for car buyers? A weekly sending limit of $4,999.99. That won’t cover most cars.
Zelle was created by a consortium of major U.S. banks. It’s integrated into many banks’ mobile apps and websites.
If your bank offers Zelle, you’ll find it in your banking app. Otherwise, you can download the Zelle app separately. Buyers can send money using the seller’s email or phone number. The funds move directly between bank accounts.
While Zelle doesn’t charge fees, your bank might. Zelle also has restrictive transfer limits, which vary by bank but typically hover around $2,000 to $5,000 per day. That’s a dealbreaker for most car transactions.
Cash App is a peer-to-peer money transfer service developed by Square, Inc. It’s known for its simple interface and bitcoin trading feature.
After linking bank accounts or debit cards, users can send and receive money using the seller’s “$Cashtag,” phone number, or email. Cash App also offers a free debit card, allowing users to spend their balance directly.
Cash App features free transfers from linked accounts or Cash App balances. If the seller wants to be paid immediately, they’ll have to pay a 1.5% fee for instant transfers. The sending limit of $7,500 per week is higher than some competitors but still falls short for most car deals.
Digital payment platforms, like other payment methods, suffer from a trust problem. Both parties are caught in a catch-22; the buyer doesn’t want to send payment without some assurance that they’ll get the car, and the seller doesn’t want to hand over the keys until they’re paid. To solve the trust problem, buyers and sellers need some outside help.
Traditionally, an escrow service helped buyers and sellers overcome the trust problem—for a price. Escrow services are expensive. They’re also inconvenient and add complexity and hassle to the deal.
A bill of sale creates accountability within private transactions. It’s a legally binding document, signed and countersigned by both parties. Should either party have dishonest intentions, the counterparty has a document that would prevail in court.
It’s simple to print off two copies of the official bill of sale for the state in which the transaction occurs. For states that don’t have an official bill of sale, a generic template works just as well. Before money or car title exchange hands, the buyer and seller can fill out both copies, sign, and countersign.
Two vulnerabilities still exist for printed bills of sale:
A digital bill of sale—stored in the cloud, signed and countersigned under both parties’ verified identities—overcomes these vulnerabilities. That’s where DealNow comes in.
DealNow is a cutting-edge digital payment platform designed for high-dollar car transactions. It’s simple, fast, and secure. Forget about crazy fees, scammers, and transaction limits. DealNow lets both parties set up verified accounts from home and complete a private-party car sale anywhere, anytime.
With DealNow, both buyer and seller sign a digital bill of sale, stored securely in the cloud and accessible through their DealNow dashboard. This high-tech approach solves the trust issue and protects your records from loss, damage, or theft.
Here’s what makes DealNow the smart choice for car transactions:
DealNow isn’t just another payment method. It’s an all-in-one platform for safe, fast, private-party car transactions.
| DealNow | PayPal | Venmo | Cash App | Zelle | |
|---|---|---|---|---|---|
|
Cost |
Low (flat fee) |
2.9% + $0.30 |
3% for credit cards |
1.5% for instant transfers |
None |
|
Transfer limits |
None |
$60,000 |
$4,999.99 per week |
$7,500 per week |
$2,000–$5,000 per day (varies by bank) |
|
Speed |
Instant |
Instant |
Instant |
Instant (with fee) |
Instant |
|
Security |
High |
Moderate |
Moderate |
Moderate |
Moderate |
|
Chargebacks |
No |
Yes |
No |
Yes |
No |
|
Integrated bill of sale |
Yes |
No |
No |
No |
No |
|
Verify odometer reading |
Yes |
No |
No |
No |
No |
|
Identity verification |
Yes |
Limited |
Limited |
Limited |
Limited |
|
Optional title check |
Yes |
No |
No |
No |
No |
|
Designed for car transactions |
Yes |
No |
No |
No |
No |
|
Guided transactional walkthrough |
Yes |
No |
No |
No |
No |
|
Order car shipping |
Yes |
No |
No |
No |
No |
|
Order a vehicle inspection |
Yes |
No |
No |
No |
No |
|
Shop for insurance |
Yes |
No |
No |
No |
No |
|
Get vehicle financing |
Yes |
No |
No |
No |
No |
Digital payment through a specialized platform such as DealNow is significantly better than physical cash. It’s more secure, more convenient, and provides a clear transaction record.
With DealNow, you get the immediacy of cash with bank-level security, all from your smartphone. No need to carry large sums of money or worry about counterfeit bills.
DealNow is the safest digital payment method. Unlike general-purpose apps, DealNow is built specifically for high-dollar vehicle sales. It combines instant transfers with identity verification, title checks, and a digital bill of sale to protect both buyers and sellers.
Our platform secures transactions by verifying both parties’ identities, confirming the buyer has sufficient funds, and providing a legally binding digital bill of sale.
People prefer digital payments for their convenience, speed, and security. There’s no need to visit a bank or carry large amounts of cash. With DealNow, you can complete a car transaction any time, any day, from anywhere.
The platform offers instant transfers, built-in safeguards, and a complete solution for private-party car sales. Plus, funds are held in FDIC-insured accounts with easy offboarding to your regular bank, giving you peace of mind throughout the process.
While wire transfers are secure; they’re also slower and less convenient than DealNow. DealNow offers the security of a wire transfer with the speed and convenience of a digital payment app.
With DealNow, you get instant transfers without exposing your banking details to strangers. Plus, the built-in safeguards like identity verification and digital bills of sale make the process smoother and safer than traditional wire transfers.
Digital payments through a specialized platform such as DealNow are much safer than checks. Checks can bounce or be forged, while DealNow verifies funds and identities before the transaction.
With checks, you’re often left waiting days for funds to clear. DealNow provides instant transfers with built-in protections, making it a superior choice for car transactions.
The best payment methods for sellers are instant, secure, and final. DealNow offers all these benefits, plus a digital bill of sale to protect the seller’s interests.
Unlike cash or checks, DealNow eliminates the risks of theft, forgery, or bounced payments. Sellers can verify buyer funds instantly and receive payment immediately upon completing the sale.
Buyers need a payment method that’s secure and offers protection against fraud. DealNow’s identity verification, title checks, and digital bill of sale give buyers peace of mind. Unlike wire transfers or cashier’s checks, DealNow provides a complete transaction platform with additional features such as vehicle history reports and inspection services. This comprehensive approach makes DealNow the ideal choice for buyers in private-party car transactions.
While escrow services add security to transactions, they are slow and expensive. DealNow provides escrow-like protection with the speed of a digital transaction. The DealNow platform verifies identities, confirms funds, and has both parties sign a digital bill of sale before the buyer transfers funds. You get escrow-like safety without the delays and high fees.
DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.
