GriffNodeAlmost every payment processor, card or crypto, works the same way underneath: your customer pays them, they hold the money, and then they pay you. That gap is where frozen accounts, rolling reserves, sudden policy changes and 180-day holds live. It is not a bug in those systems. It is what custody means.
A non-custodial processor removes the gap entirely. GriffNode generates a unique receiving address for every payment from the extended public key you provide, so the money is in your wallet from the moment it confirms. GriffNode holds no private key, and therefore has nothing to freeze.
Non-custodial and custodial processors compared
The same question asked of each model: who actually has the money?
| GriffNode | Custodial crypto processors | Self-hosted (BTCPay Server) | Card processors | |
|---|---|---|---|---|
| Fee model | Flat monthly fee, 0% of the payment amount | A percentage of every payment | No software fee, you pay hosting and your own time | Percentage plus a fixed fee per transaction |
| Custody | Non-custodial. Payments settle to your own wallet | Custodial. The provider receives funds first | Non-custodial, and you own the server too | Custodial until payout |
| Can your funds be frozen? | No. Nobody else holds a key | Yes, subject to provider policy | No | Yes, including reserves and holds |
| KYC required | No merchant KYC | Usually yes | None, there is no intermediary | Yes |
| Chargebacks | None. On-chain payments are final | None on the crypto leg | None | Yes |
| Settlement | Direct to your wallet as the payment confirms | Provider payout on their schedule | Direct to your wallet | Bank payout on a fixed schedule |
| Who runs the infrastructure | GriffNode | The provider | You | The provider |
Non-custodial is not the same as unregulated, and it does not remove your own obligations. It changes who is holding your money, not what you owe your own tax authority.
How the main processors handle custody
Stated plainly, including where competitors do this well.
- GriffNode: non-custodial only, with no custodial option at all. Payments settle to addresses derived from your own key.
- BTCPay Server: fully self-custodial and self-hosted. Funds arrive directly at your connected wallet, and you run the server.
- NOWPayments: offers a non-custodial flow to your own wallet, alongside an optional custody balance feature.
- BitPay: custodial. It processes the payment and then settles to you, which is what enables daily fiat payouts.
- CoinGate: custodial, receiving funds before settling to you, in line with its compliance-first European positioning.
- CoinPayments: a custodial wallet model, where payments land in your provider balance and you withdraw from it.
How addresses are generated without giving anything away
An extended public key, usually called an xPub, can generate an unlimited number of receiving addresses. What it cannot do is spend from any of them, because spending requires the private key, which never leaves your wallet.
You give GriffNode the xPub. GriffNode derives a fresh address for every payment, so no two customers ever see the same address, and watches the chain for incoming funds. It is the payment equivalent of giving someone your account number so they can see deposits arrive, without giving them a card.
If you want the mechanics, what is an xPub key and HD wallets explained cover it properly.
What non-custodial does not do for you
Being honest about the trade is the point. Nobody can freeze your funds, and nobody can recover them either. If you lose your seed phrase, the money is gone, and no support ticket will bring it back. That responsibility genuinely moves to you.
You also do not get automatic fiat settlement. GriffNode pays you in crypto, on-chain. Converting to your local currency is a step you handle yourself through whatever exchange or off-ramp you prefer. Custodial processors can do that for you precisely because they are holding the money.
Worth reading before you commit: 7 wallet security mistakes that lose funds.
When custody stops being theoretical
- Your industry gets reclassified as high-risk and your account is reviewed.
- A payout is held pending documentation you were never asked for at signup.
- A reserve is imposed against future disputes, holding back a share of every sale.
- Your provider exits your country, or shuts the product down, and you have weeks to move.
- A single fraud complaint triggers a freeze across your whole balance, not just the disputed payment.
How to start accepting payments non-custodially
The important part is step one. Get the wallet right and the rest is plumbing.
- Choose a wallet you genuinely control. A hardware wallet like Ledger or Trezor, or a well-established software wallet. Write the recovery phrase down on paper and store it somewhere safe. This is the one step nobody else can do for you.
- Export the extended public key. Take the xPub from your wallet. It lets GriffNode generate addresses and watch for payments, and it cannot be used to spend. The wallet setup guide covers every major wallet.
- Create a free GriffNode account. Sign up with an email, paste your xPub, and enable the coins you want to accept. There is no verification queue and no business documents.
- Set your confirmation thresholds. Decide how many confirmations you need before an order counts as paid. Defaults are 6 for Bitcoin, Litecoin and Dash, 12 for Ethereum and ERC-20 tokens, and 40 for Dogecoin.
- Connect your store and test it. Use the WooCommerce plugin, a payment link, or the REST API. Run a payment through test mode, watch it land in your own wallet, then go live.
Frequently asked questions
What is a non-custodial payment processor?
A non-custodial payment processor never takes possession of your funds. It derives receiving addresses from a key you own, so payments go from your customer directly to your wallet. The processor can see the payment arrive but cannot spend, freeze or delay it.
How can a processor generate addresses without controlling my money?
It uses your extended public key, or xPub. An xPub can generate unlimited receiving addresses but cannot authorise a spend, because spending requires the private key, which never leaves your wallet. The processor can watch, but it cannot move anything.
Can my funds be frozen with a non-custodial processor?
No. Freezing funds requires holding them, and a non-custodial processor never does. Nobody but you holds a key that can move your money. The trade is that nobody can recover it for you either, so your recovery phrase becomes genuinely your responsibility.
Is non-custodial the same as anonymous or unregulated?
No. Non-custodial describes who holds the funds, nothing more. Blockchain transactions are public and permanently recorded, and your own tax and reporting obligations are completely unchanged. GriffNode provides full transaction history and export to support them.
Do non-custodial processors still require KYC?
They generally have less reason to, because they never take possession of customer funds. GriffNode requires no merchant KYC: you sign up with an email address and connect your own wallet. Requirements vary by provider, so check each one individually.
Can I get paid in my local currency non-custodially?
Not directly. GriffNode settles on-chain, in crypto, to your own wallet. Converting to your local currency is a separate step you handle through an exchange or off-ramp of your choosing. Automatic fiat settlement is something only a custodial processor can offer.
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