What non-custodial means
In a non-custodial payment setup, the merchant controls the wallet that receives funds. A payment service can provide checkout, monitor supported blockchains and report payment status without taking control of the merchant's private keys or holding a customer balance on the merchant's behalf.
This differs from a custodial arrangement, where a provider controls the keys or holds funds in an account that the customer or merchant later withdraws from. The exact responsibilities depend on the provider and product, so read the terms of any service you use.
How the payment moves
A merchant configures a receiving address for an asset and network. Checkout presents the customer with the payment instructions, and the customer sends the transfer from their own wallet. The blockchain records the transfer to the merchant's receiving address.
A monitoring service can associate an incoming transfer with a payment request and track confirmations. Monitoring does not give the service the ability to move the funds; the merchant uses its own wallet to manage them.
What Monifyd handles
Monifyd provides payment links, invoices, hosted checkout, payment status tracking and developer tools. It watches configured networks for transfers and reports status changes after the relevant confirmation rules are met.
Monifyd does not ask merchants for seed phrases or private keys and does not hold merchant payment balances. The merchant remains in control of its wallet. Learn more about the payment workflow and the networks available.
Benefits and trade-offs
- Wallet control stays with the merchant rather than depending on a provider-held balance.
- The merchant is responsible for secure key storage, wallet access and recovery.
- On-chain transfers are generally irreversible; errors in the address, asset or network can be costly.
- Confirmation times vary, and monitoring depends on blockchain data and network-provider availability.
- Refunds must be sent by the merchant from its wallet; tracking a payment does not automatically return funds.
Good practices for merchants
Use a wallet and key-management process appropriate to your business, limit who can authorize transfers, and test the full payment flow before accepting customer funds. Check the receiving address and selected network on every request.
In your application, treat a transaction as paid only when your trusted payment system reports the confirmed status. If you connect through webhooks, verify each signature and handle duplicate deliveries safely. Monifyd's developer documentation explains webhook verification.
Keep control and keep a record
Non-custodial payments put wallet control in the merchant's hands while a payment platform can reduce the manual work of requesting and tracking transfers. That arrangement is not risk-free: wallet security and transaction decisions remain the merchant's responsibility.
Review Monifyd pricing, learn about payment links and invoices, or visit Monifyd to see how the product fits your payment process.
