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Coinbase Commerce is as secure as all other e-commerce platforms. The exchange is a transaction facilitator, offering merchants a way to accept cryptocurrency from customers. It does not hold funds, goods, or services.
That said, you can choose to use a Coinbase wallet and let the exchange hold your keys for you. However, this transfers your private keys to the exchange storage service, essentially giving it control of your funds. You can choose not to let Coinbase store your private keys for you, but you’ll need to use secure storage methods for the cryptocurrency private keys you’ll accumulate from accepting payments.
Coinbase Commerce uses seed phrase recovery to secure transactions. Seed phrases are a list of words that store all the information you need to recover cryptocurrency funds on-chain.
They are a common feature in many crypto wallets, and you can even buy seed phrase keepers that etch your seed phrase into a physical metal wallet. All transfers, including refunds, will require inputting your seed phrase.