When you shop with USDC, authorizing a payment and the merchant receiving the funds can happen in two separate steps. A Shopify case study published by Base on October 29 explains the process clearly.
After the buyer confirms the payment terms, the protocol first transfers the funds to an escrow contract. The merchant captures the payment, and only then are the funds released from escrow to the recipient. If the buyer cancels before capture, the funds that haven’t been captured are returned; returns after capture go through the refund process. If the authorization expires without the payment being captured, the buyer can withdraw the funds from escrow directly.
This design addresses real-world issues in online shopping: an item may be out of stock after an order is placed, taxes may need to be confirmed, or an order may be canceled. To integrate on-chain payments into a store, it’s not enough to handle a one-time wallet transfer.
However, what the protocol can do and what Shopify currently allows should be considered separately. Shopify’s Help Center states clearly that USDC orders don’t support partial captures and can’t be used to pay for subscription products; merchant eligibility and payout methods are also subject to regional restrictions. Support for refunds doesn’t mean there’s a card-style dispute resolution process.
Stablecoins still carry depegging and smart contract risks. Check the network and refund terms before paying.
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After the buyer confirms the payment terms, the protocol first transfers the funds to an escrow contract. The merchant captures the payment, and only then are the funds released from escrow to the recipient. If the buyer cancels before capture, the funds that haven’t been captured are returned; returns after capture go through the refund process. If the authorization expires without the payment being captured, the buyer can withdraw the funds from escrow directly.
This design addresses real-world issues in online shopping: an item may be out of stock after an order is placed, taxes may need to be confirmed, or an order may be canceled. To integrate on-chain payments into a store, it’s not enough to handle a one-time wallet transfer.
However, what the protocol can do and what Shopify currently allows should be considered separately. Shopify’s Help Center states clearly that USDC orders don’t support partial captures and can’t be used to pay for subscription products; merchant eligibility and payout methods are also subject to regional restrictions. Support for refunds doesn’t mean there’s a card-style dispute resolution process.
Stablecoins still carry depegging and smart contract risks. Check the network and refund terms before paying.
Binance Wallet invite code: MOLLY666
