Circle’s non-custodial Refund Protocol demonstrates growing adoption through recent technical upgrades and its first major implementation with Checkout.com this month.
Last week on 18 October 2023, Checkout.com became the first payment processor to implement Circle’s Refund Protocol for crypto merchant chargebacks, marking a milestone in decentralized finance (DeFi) payment infrastructure.
Recent Developments (since 25 September 2023)
On 18 October 2023, Checkout.com integrated Circle’s protocol to handle disputed transactions through automated 72-hour resolution windows. This follows the protocol’s Ethereum Mainnet deployment on 10 October 2023, which introduced programmable refunds for USDC stablecoin transactions.
Technical specifications released 12 October 2023 revealed key mechanisms: funds remain locked for three days during disputes, with 0.75% early withdrawal fees incentivizing resolution participation. Developers confirmed Polygon zkEVM compatibility the same week.
Historical Comparison
Prior to this protocol launch (10 October 2023), crypto merchants lacked standardized chargeback solutions. Traditional payment processors like PayPal have offered buyer protection since 1998, but required centralized oversight – a gap Circle addresses through time-bound smart contracts.
The $28B crypto merchant gap referenced in September 2023 industry reports shows why this development matters: 62% of surveyed businesses cited refund capabilities as their top barrier to accepting crypto payments before this solution emerged.
