Oh, that really explains some stories I have heard about cars. That banks simply refuse some purchases from more independent sellers. Sometimes the fraud detection and avoidance can go too far.

I did not know about it as a problem with cars, but it makes sense that it is.

It is likely to come up a lot with private sales. Banks are unlikely to let the seller deposit cash (because of money laundering rules), so if they do not allow a payment by transfer its going to become impossible.

It seems unfair to other customers of the bank to require the bank to "return" 75% of the money.

This should be a matter for business insurance.

Small businesses will often not have business insurance, and private individuals will not.

I doubt insurance covers this sort of thing though.

ti is quite annoying getting "is this a fraud?" warnings on every transfer - even small amounts to my kids!