There are two main types of XRP Ledger accounts:
- Non custodial (Un-hosted)
A decentralized account where you own the account secret. (Secret Numbers, Family Seed, Mnemonic) You have full and exclusive control over your XRPL account and are 100% responsible for managing your account secret. This type of account can not be seized or frozen by a government or financial institution. Xumm is an application that helps you manage your non custodial (un-hosted) accounts.
A centralized account where your crypto exchange keeps yours assets and provides security for them. You trust them to hold and control your funds on your behalf. Most crypto exchanges are regulated and insured depending on where they are located. This type of account can be seized or frozen by a government or by the exchange itself.
About Destination Tags
Destination tags are mainly used by exchanges to identify client accounts.
Think of a Destination Tag like this:
Your crypt exchange is a big apartment building that has 1000's of apartments. Each customer has an apartment in the building. If I send a letter to the apartment building, but I don't put an apartment number on it, the letter arrives at the address, but just sits in the lobby. Officially it has been delivered, but without an apartment number, no one knows where the letter should go.
For a custodial account, the r-address is the apartment building belonging to your exchange and the destination tag is your apartment number.
Non custodial accounts, like the ones managed with Xumm, do not have destination tags.
For more information about Destination tags, check out this video;
Where can I find the return payment button?
If you press the "Events" button on the main screen of Xumm, then select a "Payment" type of transaction, you should see the "Return payment" button.
What happens when I press the return payment button?
When you press the "Return Payment" button it starts a payment flow which automatically enters the token and the return amount based on the original payment that was made to your account.
What if I want to do a return payment to my crypto exchange account?
That is where things get tricky.
The first part of the payment flow (shown above) is correct, but the next part may or may not be correct.
Notice that Xumm automatically enters the return r-address for you. The same thing will happen if the payment was from an exchange account, Xumm will populate the r-address with the account that the funds came from.
Here is the important part
*** It is up to you to determine if the return r-address is correct. ***
Many exchanges have multiple r-addresses. Some are for sending tokens, some for receiving tokens. You need to make sure that the r-address is the correct r-address for receiving tokens.
Your exchange should have provided you with an r-address that you can send funds to. Make sure you confirm that the r-address is correct.
As well, make sure that you enter a destination tag for your account.
Your exchange should have provided you with a destination tag and you must enter it before signing your transaction.
Xumm has no way of knowing what your destination tag is, so it can not automatically enter it for you.
...but I already sent the return payment without checking..?
If you already signed and sent the transaction back to your exchange, here is what you should do.
- Visit this site: https://bithomp.com
- Enter your r-address then search for the Transaction Hash.
- Contact your crypto exchange, provide the Transaction hash, and ask them to locate your funds and direct them to your account.
Are you familiar with the Meatballs menu?
Did you know you can find the transaction hash straight from Xumm via the Meatballs menu?
We understand that you might have additional questions regarding this topic so you are welcome to contact us any time via the Xumm Support xApp in Xumm or you can simply scan this QR code with Xumm and be directed there automatically.