Glossary
An open protocol for agents to pay each other via HTTP 402 and EIP-3009.
x402 lets agents pay per API call via HTTP 402 Payment Required and EIP-3009 authorization. Each payment is on-chain.
Compliance obligations apply to x402 transactions the same as any transfer of value.
Built by Coinbase, OpenAI, and platform providers for agents consuming paid APIs.
Agents face two OFAC risks: origin of incoming payments and destination of outgoing payments.
The /x402-demo endpoint screens incoming wallets and prevents 402 responses to sanctioned sources.
x402 is a neutral payment protocol, so compliance is the operator's responsibility rather than a built-in feature. Every x402 payment is still a transfer of value subject to OFAC rules. agentmail provides the screening layer that checks each counterparty against the SDN List before an x402 payment is authorized, closing that gap.
No. x402 handles the mechanics of paying per API call via HTTP 402 and EIP-3009, but it deliberately leaves identity verification to the operator. Any Know Your Customer or Know Your Agent checks, along with sanctions screening, must be layered on top of x402 by the developer integrating the protocol.
On-chain x402 settlements are permanently recorded on the blockchain, which provides a durable transaction trail. agentmail adds the compliance context OFAC expects, logging the screening result, timestamp, and SDN-list version for each payment so you can demonstrate a documented pre-payment compliance process if audited.