Security deposit for gift card trades

Paxful security deposit is for the vendors who trade cryptocurrency for gift cards. A security deposit borrows the funds for a defined period of time. Every seller on Paxful who trades cryptocurrency using a gift card offer is required to upload a security deposit to ensure the safety of Paxful buyers. On Paxful, the required security deposit is 0.1 BTC 

Note:

  • The security deposit is for gift card trades only. For other payment groups like cash, online wallets, and debit/credit cards, a security deposit is not required.
  • If you don’t have enough BTC in your account to cover the security deposit, your offer will not be activated.
  • Your deposit amount is released 7 days after your last gift card trade.
  • Some users may have a flexible security deposit logic, read more here.
  • You can manage your security deposit on your Dashboard.

Uploading security deposit


1. Login to your Paxful Account. On the header bar, click Dashboards.

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The Dashboard page appears.

Note: You can use both Vendor Dashboard and Classic Dashboard to manage your security deposit.

2. Above the My Offers list on the Security deposit dashboard, click Deposit.

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A confirmation window appears.

Note:

  • If you click Deposit on the Security deposit dashboard, a full missing amount will be uploaded.
  • If you click Deposit on the offer field of one of your offers, the exact amount required for the specific gift card type will be uploaded. For more information click here.

3. Read the message carefully and click Deposit to confirm the transaction.

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A notification appears confirming that your BTC were deposited from your wallet to Paxful secure escrow.
The deposited amount is shown on the Security deposit dashboard.

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Note: You do not have to deposit BTC for each offer or payment method separately. Your deposit covers all offers and all gift card types.
Example: You have offers that require 0.1 BTC, 0.2 BTC, and 0.3 BTC. If you deposit 0.3 BTC all of your offers become active and visible for your potential trade partners.

Withdrawing security deposit

1. Login to your Paxful account. On the header bar, click Dashboards.

ClickDashboards.png

The Dashboard page appears.

Note: You can use both Vendor Dashboard and Classic Dashboard to manage your security deposit.

2. Above the My Offers list on the Security deposit dashboard, click Withdraw.

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A confirmation window appears.

3. Read the message carefully and click Withdraw to confirm the transaction.

withdrawCorrected.png

A notification appears confirming that your BTC were transferred from Paxful secure escrow to your wallet.

Note:

  • It is possible to withdraw your security deposit only seven days after your last gift card trade. This includes successful and cancelled trades for all gift card types.
  • If you did not have any gift card trades, you can withdraw your deposit at any time.

Flexible security deposit 

How can I know if I have flexible security deposit logic applied to my account?
You will receive a notification that your offer is deauthorized and requires a higher amount of security deposit to become active again. You will see a new deposit amount on your security deposit dashboard. 
SecuritydepositUpdated.png
I already have a trading history. Once activated, based on which information the new security deposit logic calculates the amount of my deposit?
The analysis of the trade activity starts after the feature is activated. Initially, the standard amount of 0.1 BTC is applied.
I am a user without a trading history. Based on which information the new security deposit logic calculates the amount of my deposit?
Initially, the standard amount of 0.1 BTC is applied.
How does the amount of security deposit change?
According to your trading activity, the amount of deposit may become higher 0.1 BTC or lower.
Based on which information my security deposit becomes higher or lower?

The following factors affect the change of your security deposit:

  • % of disputes
  • % of cancelled trades after cryptocurrency buyer has marked trade as paid
  • % of cancelled trades after a dispute has started
  • % of successful trades (trades without disputes, cancellations, etc.)
  • how quickly you respond to your trade partners
Does my trading activity affect all gift card types at once or it is calculated separately for each gift card type?
The security deposit amount is calculated separately for each gift card type. Eventually, for example, it is possible to have one deposit requirement for Amazon gift cards and another for iTunes. Here is an example of how you may see it on your Dashboard:
differentAmounts.png
How often my security deposit amount gets updated?
Your security deposit amount is recalculated after each trade.
Do I have to upload a security deposit for each offer separately?

No. Your security deposit covers all your gift card offers at once. The deposit is not per offer but per user.

Example: You have three offers that require a deposit of 0.1 BTC. By uploading 0.1 BTC once, all of these offers become available for trading.

Example: You have three types of offers with different deposit requirements. One type requires 0.1 BTC, another 0.3 BTC, and the third one 0.7 BTC. By uploading 0.3 BTC, all your offers with 0.1 BTC and 0.3 BTC become active. By uploading 0.7 BTC all your offers become available for trading.

Once my deposit amount changes, will the system tell about it upfront or offers will be deauthorized right away?
If your security deposit amount becomes higher, you receive a notification that your offer became deauthorized.

Find out more about how to create an offer to sell cryptocurrency and read more about gift card trade specifics.

 

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