Contract accounts are smart contracts that act like accounts. They hold balances and use `__check_auth` to decide who can act and under what conditions.

Use a contract account when:

- You need custom authentication in the contract (passkeys/WebAuthn, hardware keys, or other signer checks).
- You need on chain rules such as spend caps, allow lists, or timelocks.

Stay with a classic account when:

- You want the simplest path: one private key, fund the account, no extra contract code or infrastructure.
- You must interoperate with systems/tools that expect memos (for example, some exchanges require payments with memos from a G-address; contract account payments go through the Stellar Asset Contract as muxed transfers, so transfers from contracts are not supported by exchanges today).

Quick links:

- [Simple Account example](https://developers.stellar.org/docs/build/smart-contracts/example-contracts/simple-account.md)
- [Complex Account example](https://developers.stellar.org/docs/build/smart-contracts/example-contracts/complex-account.md)
- [Contract authorization starter guide](https://developers.stellar.org/docs/build/guides/auth/contract-authorization.md) and [Authorization fundamentals](https://developers.stellar.org/docs/learn/fundamentals/contract-development/authorization.md)