Payment guarantee is the counter-party for all auctions, offering a security to the sellers. Payment guarantee ensures the seller of the payment obligations of the buyer and is linked to the sale of the seller’s asset at auctions. As Auctionity works on a blockchain system, the buyer (i.e the person with the highest bid at the end of the auction sale) can’t retract once the auction ends. The fact that he won the auction is an event that will be written in the blockchain Auctionity. It is tamper-proof and not editable by anyone.
The payment guarantee goes even further to protect sellers by ensuring that each bidder actually possesses the amount he is using to bid on an item. On the Auctionity platform, the bidder can only use the amount he has previously transferred to his account. If he wishes to bid more than the amount he has available on his Auctionity account, he will need to make another transfer to refund the account. Thus, no surprise for the seller: the buyer simply cannot bid if he does not have the required funds.