Destination tags and memos, used by Ripple (XRP) and Stellar (XLM), are a string of numbers added to the destination address that are required when sending to a wallet provided by an exchange or other custodial service. At CoinFlip we refer to both memos and destination tags as Payment Tags.

This article will explain what Payment Tags are and how to use them at a CoinFlip ATM.

Note, if you have a self-custodial wallet, like the CoinFlip wallet, you can press “0” when prompted by the machine, then continue like any other transaction, as described here.

Payment Tags Explained

Ripple, the company that runs XRP, and Stellar, the company in charge of XLM, require tags on certain wallets to make sure funds are routed to the correct account. Both memos and tags are numeric identifiers used to specify the recipient’s account within a centralized exchange. This is necessary because the wallets provided by exchanges, like Coinbase, often use a single address to serve many users. The Payment Tag gives direction for what account to send the funds to. Another way to think of it is that your Coinbase wallet is an apartment building, and the Payment Tag is your specific apartment.

CoinFlip ATMs request a Payment Tag after you receive SMS confirmation and before you insert cash or provide your wallet’s address. If you use a self-custodial wallet that does not provide a memo or destination tag, just press “0”. Learn more about custodial and self-custodial wallets here.

Above: This is the prompt from the CoinFlip ATM menu. It will appear before you enter cash.

How to Find Your Destination Tag or Memo

Your wallet should provide you with the Payment Tag number when you press the “receive” command for XRP or XLM.

Above images sourced from the Coinbase blog.

Again, if you use a self-custodial wallet - like Exodus or the CoinFlip Wallet - and it does not provide payment tag information, then just press “0” when prompted by the machine.

What if I Enter the Wrong Payment Tag?

Always double check the Payment Tag before pressing submit. If in doubt, purchase a small amount then continue with your full purchase once the initial buy goes through.

Entering the wrong Payment Tag will send your crypto into limbo where it might be lost forever. The wallet provider will not know what specific user to send the crypto to and will generally just hold it.

If you provide the wrong Payment Tag, you will have to contact the wallet provider and settle the issue with them. CoinFlip is not responsible for Payment Tag errors.

Other Purchasing Options

CoinFlip provides XRP and XLM for cash purchase through most of our global ATM network, but the exact cryptocurrency provided may vary by location. If you prefer to buy through a bank account, give CoinFlip Preferred at try. You can also buy XRP through the CoinFlip Wallet app using Moonpay.