Zutopia is designed as a peer-to-peer marketplace, which means it does not hold fiat currency on behalf of its users.
Understanding this distinction helps explain why payments are pre-authorised at the start of a trade rather than deposited into a Zutopia-held balance.
No Custody of Funds
A peer-to-peer, or P2P, marketplace is an online platform that connects people temporarily, allowing them to trade with each other. Zutopia never holds Zucoins or fiat currency.
During a transaction, the buyer's purchasing funds are pre-authorised at the start of the trade and only released after a successful transfer has been confirmed, rather than being held in a Zutopia account.
Important Notes
Zutopia does not hold fiat currency or Zucoins on behalf of its users.
All payment processing, including pre-authorisations and payouts, is securely handled by Stripe.
Sellers receive their funds through the bank account connected to their Stripe account after a successful transaction.