Of course it may eventually all get settled in the seller’s favor in court, but in the meantime the buyer has their vehicle and their money back and it’s on the seller to track them down and sue.
So people tend to do person-to-person used vehicle purchases in cash-equivalents (cash, cashier’s check, etc) so that there’s no worry about the money disappearing after the buyer drives over the horizon.
At which point you would give the documentation showing that that it was a as-is purchase and a legitimate transaction.
But as I said above, this could happen to any card transaction not just used car sales.
A used car dealership is better positioned to spend time dealing with chargeback disputes than a private seller, but why bother with extra work when you can just put up a sign that says "no credit cards" and never have to deal with it?
The person having the issue with stripe clearly initally thought accepting payment via card was fine, the purchaser hasn't issued a chargeback as far as we can tell, the transaction itself was flagged by stripe.
EDIT: just to be clear. or atleast try to be more clear. I'm not against Stripe "holding" on to the cash for a while, it was an abnormal transaction on the account for an item not normally sold by the seller (as they used Stripe as a back up method as their primary provider was down).
I was just asking the question why would a used vehicle sale be deemed as a huge liability for a company selling their old company van to process via the card network (not your avg joe selling a car from home who might not want the hassle - cash is king for as-is sales at the end of the day) because the fact it was a used vehicle was the reason the person I was replying to stated as the prob cause.
EDIT2: Allow me to word it like this. If the company wished to sell off old networking gear and/or servers "as-is" because they were no longer needed. The size of the transaction and the items sold would be unusual for the business to be selling which may cause the transaction to be flagged for further inspection/validation/hold on the funds just to be on the safe side (Thats fine, I get that, they were doing transactions outside their normal operations and tripped some safeguards).
But I just don't see why the item(s) themselves (the network gear/servers) alone would be such a liability to justify the hold, servers and network gear get sold as-is online all the time, so why would a used vehicle be any different? The person I initally replied to was saying that because "a used car seems extremely likely to cause a chargeback". I just don't get the "extremely likely to cause a chargeback" part.
I kind of agree - I don't see why manually reviewing a transaction that probably violates their agreement with Stripe should be prioritized by Stripe - even if the transaction would eventually emerge as legit (not fraudulent and not chargeback-able). Because such a manual review would entail a cost to Stripe that is being forced upon Stripe by the seller's actions.
Last car I purchased (granted a) it was brand new b) I'm in the UK) I purchased the car using my debit card (I kept the recept for ages until it faded cause it was novel to me to have such a large card transaction on a small thermal printed receipt :-P)
So I'm just wondering why a 2nd hand vehicle sale would be a huge liability thats all.