In the world of electronic commerce, a Bitcoin merchant account is commonly a talk-about. As Bitcoin’s value has risen in recent years, many businesses seek to utilize a variety of payment methods, including accepting bitcoin payments.
If you’re an online merchant who wants to accept payment in Bitcoin or create a Bitcoin Merchant Account, you need to learn how this new payment system works and the platforms that process them.
In this article, we will discuss how to accept bitcoin payments for your business and all that you need to know about the payment solution.
What is Bitcoin?
Bitcoin is a decentralized digital currency that allows users to send and receive money via the Internet. Although it is a cashless payment system that does not involve banks, some shops have begun to accept the currency.
Bitcoins are accepted in every jurisdiction, and there are very few restrictions, such as spending limits.
To generate Bitcoins, users can download a free application called a Bitcoin miner. After that, bitcoins are kept in a digital wallet.
A consumer can pay with Bitcoins by opening the Bitcoin wallet app, displaying the QR code, and having another consumer or retailer scan the code.
When customers send Bitcoins, an electronic signature is added, the transaction is verified by a miner, and the transaction is kept permanently and anonymously in the network.
Because the Bitcoin program is open source, anyone may examine it.
There’s even a Google Glass program that accepts Bitcoin payments. GlassPay allows customers to scan a product’s UPC in-store, create a virtual shopping basket, pay with Bitcoins, and leave the store without having to wait in line.
A Bitcoin mobile wallet is also available for download on Google Play.
Bitcoin Merchant Account
The most appealing feature of Bitcoin is that you can only use it once, and transactions may be completed at any time and from any location.
Customers can pay virtually instantaneously and with a little commission by using a bitcoin payment gateway and a bitcoin merchant account. Furthermore, both merchants and purchasers benefit from bitcoin and cryptocurrency merchant accounts.
Benefits of accepting Bitcoin as forms of payment for merchants
To avoid losing potential customers/sales, merchants should always be aware of accepting as many legitimate means of payment as feasible.
Bitcoin is unlikely to go away, hence accepting Bitcoin transactions is in the merchant’s or individual’s best interests.
Accepting Bitcoin and other cryptos has a number of advantages, the most important of which is that merchants are not subject to chargebacks. Chargebacks are one of the most expensive issues that merchants face, and they are also one of the primary reasons that merchants are classified as high-risk.
Why merchants accepts Bitcoin as a payment method:
Here are reasons for accepting bitcoins as a means of payment by merchants:
- No Chargebacks
- Have the capacity to increase in sales
- Merchants can access the global market
- Reduced company expenses
- Quick Settlement
#1. No Chargebacks and fraud are reduced
When a Bitcoin transaction is completed, it gets added to the blockchain. It’s nearly hard to undo a transaction after it’s been recorded in the blockchain.
This approach eliminates the possibility of a chargeback, saving the retailer both time and money.
Another issue to consider is that cryptocurrency is a digital currency that cannot be counterfeited in the same way that cash can.
So, what exactly is a blockchain? Simply said, a blockchain is a form of a database.
Unlike fiat currency like gold or silver, the Bitcoin blockchain is decentralized, which means that no single person or group controls it. Instead, all users collectively supervise.
Businesses have the option of keeping Bitcoin for as long as they choose.
#2. Have the capacity to increase in sales
As Bitcoin becomes more stable, merchants and banks will have more faith in it.
When merchants can accept Bitcoin and other cryptocurrencies, they increase their chances of gaining new customers. When it comes to crypto-friendly businesses and exchanges, the cryptocurrency community is also very knowledgeable.
As a result, people may be more likely to shop, buy, or work with your company in order to support the cryptocurrency community. Even if you don’t choose to implement crypto payments right now, becoming familiar with the cryptocurrency market is critical for your business.
#3. Merchants can access the global market
Cryptocurrencies can be used on a global scale because they are not affected by exchange rates, foreign transaction rates, or interest rates.
Cryptocurrencies have the potential to break down financial barriers in developing countries. Without a banking infrastructure, an individual can access cryptocurrencies using only a mobile device.
#4. Reduced company expenses
When it comes to cryptocurrencies, fees are typically lower, and businesses rarely have to pay Bitcoin transaction fees. While business fees are lower, the ever-present element of the unknown is concerning for businesses, as they could lose hundreds of thousands of dollars if cryptocurrency prices fall.
#5. Quick Settlement
This can be useful when making large purchases like a home or a car. The seller will see the transaction post in their wallet within an hour of signing the deal and sending payment, rather than waiting for it to post.
Why businesses should accept bitcoin
Allowing clients to pay with bitcoin has a lot of advantages.
- Offer existing customers new ways of paying
- Gain access to new customers who prefer using cryptocurrencies to pay for goods and services
- To allow customers a discreet payment method (no embarrassing credit card statements)
- Reduce the costs that come with other payment methods such as credit cards etc.
- To help support the cryptocurrency revolution
How to set up a bitcoin merchant account?
The most significant challenge for acquirers is avoiding money laundering businesses. As a result, they have their own verification and check processes.
Also, include a typical set of documentation for purchasing cryptocurrency in the application. Don’t forget to include a section on security, specifically how your company combats fraud.
Having a signatory on the account with solid personal credit is, of course, essential.
Naturally, make sure that all of your site’s pages load quickly and correctly. Policies on privacy, refunds, and other pertinent issues must be plainly evident.
Make it simple to locate customer assistance email addresses and phone numbers. Underwriters frequently “cold call” or email customer service to assess their qualifications.
To sign in to cryptocurrency websites, you’ll need a username and password. Include a demo or test login so that the underwriting team can see what the clients see.
To confirm processing volumes and determine chargeback ratios, processing statements are evaluated. Include a brief explanation of why chargeback ratios are increasing and what is being done to bring chargeback ratios under control.
Bank statements are scrutinized to ensure that there is sufficient cash on hand to run the firm. Documents from the business world are scrutinized. The remaining supporting documents are also checked.
Your merchant identification number (MID) is assigned once your account has been approved. The credit card to bitcoin payment gateway login details is securely emailed to you. You can start accepting payments right away.
Bitcoin Merchant Requirements
Anti-money laundering is a major concern for banks when examining applications for cryptocurrency merchant accounts. As a result, provide all information about your anti-money laundering and compliance procedures in your application file. This information is readily available at the majority of cryptocurrency shops.
For bitcoin businesses, knowing your customer is really vital.
Other details to mention are the efforts you take to avoid fraudulent transactions and the operation of your blockchain monitoring computer security system.
Bitcoin Merchant Account Rates
The strength of the application package determines the processing rates for cryptocurrency merchant services. Our mission is to help you save money on payment processing while also providing you with cutting-edge technology and support.
Every bitcoin merchant account is a little different. However, all accounts are subject to the same costs. For cryptocurrency merchant accounts, reserves are frequent.
How To Choose The Best Bitcoin Merchant Account Solutions
When it comes to choosing the best bitcoin payment processing/merchant account options, research is crucial. This is true of all high-risk merchant solutions; however, it is especially true of cryptocurrency.
When it comes to Bitcoin/cryptocurrencies, different payment processing providers will have different capacities.
Fees will vary depending on the payment service providers and their associated banks while looking for different bitcoin options.
If you choose a payment service provider, make sure they specialize in high-risk accounts.
How to Accept Bitcoin Payments
Businesses should explore taking cryptocurrency payments from clients because so many people use cryptocurrencies like Bitcoin. with the top ten bitcoin merchant account listed in this article, your business can accept bitcoin payment stress-free.
Top 10 Bitcoin Merchant Accounts
- Paytriot Payments
- Radiant Pay
EMB seeks to give cutting-edge information to educate merchants about the cryptocurrency sector as specialists in the high-risk space.
EMB has its own payment gateway, as well as support for Authorize.net and a variety of additional payment processors. There are no startup fees, application fees, or annual fees. They also provide chargeback shields, check processing services, MOTO processing solutions, and merchant cash advance programs in addition to merchant accounts. Customer service is available via phone, email, and live chat. Telephone support is also accessible after hours.
#2. Paytriot Payments
Paytriot Payments is a bitcoin merchant account, based in Uxbridge, UK, that supports high-risk businesses in receiving merchant accounts in hours rather than weeks.
They offer reasonable rates, a simple onboarding procedure, multi-currencies, and 24/7 customer care for their merchant services.
Customers who are hesitant to provide their credit or debit card information on a new website can use Paytriot’s e-wallet services.
ccNetPay’s bitcoin merchant account principal portfolio consists primarily of European merchants, with offices in London and Slovenia.
Server2Server API integration, Batch Processing, CVV, AVS, and 3D Secure, Real-time reporting and management, Global Card Processing, Recurring Billing, Virtual Terminal, over 150 supported currencies, Dynamic Billing Descriptor, and it Reports API for data pull to back-end are some of the supported features within the merchant account.
There are no service or sign-up fees, transaction limitations, or safety deposits, and clients receive specialized account care for the duration of the account.
#4. Radiant Pay
Bitcoin merchant account London-based Radiant Pay is a payment solutions company that works with businesses in all “legal” industries, including cryptocurrency merchants and traders. It is a leading payment solution provider in the United Kingdom, Europe, and Asia.
Verotel, a renowned Internet Payment Service Provider (IPSP), has been in operation since 1998 when it handled its first transaction.
Competitive rates and high volume discounts, free monitoring tools to review sales and manage accounts, cardholder support for online credit card transactions, weekly payouts, accepts a wide range of payment options, no minimum processing requirement, and a free Remote User Management tool are just a few of their great features.
iPayTotal is a bitcoin payment processor based in London that also provides end-to-end high-risk merchant solutions to customers all over the world.
PayWorld, is a bitcoin merchant account based in Sussex, UK, seeks to provide low rates and secure processing solutions. A division of Frontline, an IT solutions provider that has been in business since 1989.
Acceptance of all credit and debit cards, real-time credit card transaction processing with fraud scrubbing, address verification check (AVS) directly from the merchant’s website, 128-bit SSL Encryption (HTTPS) for increased security, quick and easy setup (48 hours), PCI Level 1 Certified Gateway Services, and more are among PayWorld’s features.
For the past six years, GSPay, based in Gainsborough, North Lincolnshire, England, has specialized in the high-risk industry.
One of the strategies advocated by GSPay for high-risk merchants is to open an offshore account to avoid paying taxes. There are no out-of-pocket expenses. A competent crew is also available to help their consumers 24 hours a day.
Complete application programming interface, approval in less than a week, fast setup, no initial deposits, no monthly fees, no application costs, and weekly payouts are among the benefits for high-risk offshore merchant account clients.
Instabill can now accept bitcoin payouts. Merchants must submit the appropriate Know Your Customer (KYC) documents before opening an account.
The following are some of the advantages of using Bitcoin as a merchant: quick person-to-person transfers, no need for a debit/credit card or PIN, a convenient storage solution on your PC or smartphone, and traceable transactions to prevent fraud.
Although adult merchant account costs are famously expensive, Instabill offers accounts with one of their offshore acquiring banks at reasonable prices.
Bitpay offers bitcoin merchants payment processing services on six continents.
Bitpay’s features and services include payment buttons, a hosted checkout, and website-embedded invoices. They can also use ACH to transfer funds to the merchant’s bank account. Automatic payment exception handling, e-commerce, donation, and retail payment tools, and Quickbooks IIF download
Bitpay allows for settlement in 12 different currencies as well as direct bank deposits in 37 different countries. Settlements in cryptocurrencies are available in over 200 countries.
Bitcoin payment gateway
A bitcoin payment gateway enables merchants to accept bitcoin payments. Most of these payment processors now support the purchase and sale of a variety of different altcoins, including Ethereum, Litecoin, Ripple, and Bitcoin Cash.
Payment processors make it possible to convert bitcoin and other altcoins into fiat currency right away. They enable merchants to automate these payments. It provides a variety of other tools and reports to make the entire process as simple as possible.
Top bitcoin payment gateways
We looked at ten of the most popular payment gateways. Each has its own set of advantages, characteristics, and market target audience.
Coinbase is the largest bitcoin exchange in the United States, as well as one of the world’s major cryptocurrency exchanges. It has the resources to develop some wonderful features to help make life easier for its users because of its massive user base.
Coinbase may function as both a payment gateway and a traditional exchange. It allows for rapid currency conversion from Bitcoin to fiat currency without requiring the merchant to make a withdrawal request.
Payments clear to the merchant’s bank account in 2 to 3 days, making it an excellent choice for enterprises of all sizes. The only disadvantage of Coinbase is that it is only available in a few countries around the world.
Coingate provides a very user-friendly app that allows retailers to set up and track payments directly from their phones. It also has the added benefit of supporting over 40 other cryptocurrencies, allowing retailers to significantly increase the number of payment methods they provide simply by using this crypto payment gateway.
Coingate also offers a variety of plugins and even permits the development of bitcoin payment buttons on any website, if that wasn’t enough to pique your interest. Coingate charges a 1% fee on all transactions, which take around an hour to complete.
Shopify is one of the most well-known and reliable cryptocurrency payment processors in the world.
It’s simple to set up and there’s lots of customer service support if you need it.
The sole disadvantage of Shopify is that it requires merchants to open a Shopify merchant account in order to use the payment processing service. The cost of a transaction varies based on the type of transaction.
This is a wonderful choice for merchants who want to save some bitcoin from each transaction to profit from rising prices, as it allows them to hedge their bets without jeopardizing the entire amount.
While AlfaCoins charges a 0.99 percent transaction fee, it does not offer the $1 million in free transactions like Coinbase offers. AlfaCoins, on the other hand, does not charge any additional costs for installing the bitcoin payment system and does not require a subscription. It allows you to withdraw funds in either USD or EUR.
CoinsBank is an easy-to-use bitcoin payment processor with a solid reputation in the market. It is available on mobile devices through free Android and iOS apps.
This excellent bitcoin gateway accepts the majority of major fiat currencies, including the US dollar, the British pound, and the Euro. Large volume traders would appreciate the app’s one-click rapid deposit and withdrawal feature.
Coinsbank also offers free cash transfers to relatives and friends 24 hours a day, seven days a week.
Finally, the platform provides the most up-to-date security, including a two-factor authentication method to keep your wallet safe. If users have any issues, there is a customer care system available 24 hours a day, 7 days a week.
This is extremely useful for merchants who require or prefer withdrawals at specific intervals. Two-factor authentication is another useful feature that makes accounts even more secure.
BitPay is a straightforward payment gateway to set up and use. The entire procedure has been simplified to make it as simple as possible for merchants that are less tech-savvy.
This bitcoin payment gateway offers a free daily transaction cap of $1,000 and a $10,000 annual transaction cap before charging a 1% transaction fee.
As a result, it’s a great option for small enterprises and startups. The only disadvantage is that BitPay only accepts direct bank deposits in 38 countries for now. You won’t be able to use it if it doesn’t make it onto the list.
GoCoin is a popular cryptocurrency among developers all around the world. This is due to the fact that it provides them with a very basic and easy API to use. It pays out in US dollars and charges a fixed fee of 1% on all transactions.
BitcoinPay is without a doubt one of the top bitcoin payment gateways out now for merchants trying to get the greatest deal on transaction costs. It is the cheapest payment gateway on this list, charging only 0.8 percent on all transactions.
Despite the lower fees, BitcoinPay still provides lightning-fast withdrawals, with funds arriving and being available in seconds. It accepts payments to bitcoin wallets and other e-wallets as well as bank accounts, making it a good choice for merchants interested in cryptocurrency.
As an extra plus, BitcoinPay provides crystal-clear reports that make it simple for merchants to examine completed transactions.
Small business owners who must manually check transactions would surely appreciate this feature. Plugins for Magento, WooCommerce, OpenCart, PrestaShop, and other shopping platforms are now available from BitcoinPay.
If you’re wondering how to take Bitcoin while your company doesn’t have a bank account, GoURL is an amazing option. GoURL is compatible with all major bitcoin wallets and even bitcoin debit cards, such as those offered by BitPay. As a result, it provides a high level of privacy, which is desirable to many bitcoin users.
The GoURL platform provides precise payment breakdowns, making order management a breeze.
Another fantastic benefit of this platform is that it allows merchants to use Monetiser Online to set up 1-click payments on their websites.
Unfortunately, GoURL as a payment gateway has a few flaws. To begin with, the platform does not support direct bank transfers, which will undoubtedly be a source of annoyance for several firms.
Second, when compared to the other payment gateways on our list, the fees are quite expensive. GoURL charges a 1.5 percent fee on all website payments and a 3.5 percent fee if you use Monetiser Online.
Given that these charges are equivalent to the credit card fees that merchants must pay, it’s unlikely that any merchant will select GoURL to save money.
Euro transfers take up to 24 hours to complete, which is longer than some of the faster swaps. SpicePay charges a flat fee of 1% on all transactions, with new merchants receiving free transactions for a limited time.
SpicePay isn’t my first option for a payment gateway because it lacks a lot of useful features that others on this list provide. However, if your company is significantly reliant on PayPal, it is an excellent platform to investigate.
Pros and Cons of Accepting Bitcoin Payment
Accepting bitcoin payments has a lot of advantages and disadvantages, and we’ll go through a few of them below:
Pros of Accepting Bitcoin Payment
One of the most common technical issues with online payment is that you pay with your credit card and then receive notification that your money has been reversed. Your bank, on the other hand, does not reflect the refunded amount, therefore your money is trapped in the middle. Your money will become stuck, and there will be nothing you can do about it.
Such issues do not exist in the case of bitcoin payments; once a transaction is completed, the funds are immediately transferred to the wallet to whom you are sending the funds. Because there is no means for the money to return, it only allows for a one-way transaction.
Zero Transaction Fees
It would be a deception to claim that no transaction charge is required because the transaction is visible. Of course, there will be a fee associated with the transaction. However, the transaction fee is not as high as that of banks; banks charge you almost 5-7 percent, whereas bitcoin transaction fees are approximately 0-15 percent. This is also up to your discretion; you can select how much you want to charge yourself for the transaction and then pay it.
The anonymity of bitcoin eliminates any doubt about who sent it and why he/she sent it. It’s just that you know bitcoin’s anonymity will make your life easier. No one will inquire about your funds or to who you are sending the funds to.
It’s your money, and you can do whatever you want with it.
It comes with a slew of other benefits, like the ability to send large sums of money to anybody you want.
Cons of Accepting Bitcoin Payment
The price volatility of bitcoin is a problem; you may notice that the price has risen, and you wait a while to let the price settle, only to discover that the price has dropped again. The sole disadvantage of bitcoins is this.
Without a doubt, the price of bitcoin climbs very quickly, but it also falls very quickly. The volatility of bitcoin causes bitcoin users to be skeptical about the currency. This is the sole reason why most investors are hesitant to invest in bitcoin.
When you hold bitcoin, the most important thing to consider is its security. Bitcoins are valuable, and hackers are always looking for a way to exploit a technological flaw and gain access to your wallet or your gold. The owners of bitcoin are mainly concerned with security; they are only concerned with how to keep their bitcoins safe from cybercriminals.
Bitcoin merchant account security?
Several factors contribute to the protection of bitcoin from theft. The production and transfer of a cryptocurrency are controlled by cryptography, and the protocols that underpin bitcoin have been shown to be reliable.
Because there is no single point of failure, Bitcoin’s use of distributed ledger technology (DLT), also known as the blockchain, provides owners with a record of all their transactions that cannot be tampered with. Because of Bitcoin’s DLT openness, all transactions are visible to the public, but the parties involved remain anonymous, removing the risk of a data leak that exists in traditional banking systems.
However, attackers have exploited vulnerabilities in crypto-exchanges, which are platforms on which customers make payments and trade cryptocurrencies for other digital or conventional currencies, and crypto-wallets, which are software used to store bitcoin on computers and smartphones, despite the strengths of DLT and blockchain.
In general, crypto exchanges and -wallets do not provide sufficient assurance and security to be used to keep money in the same manner that a bank does. As the value of bitcoin has risen, so has the number of viruses meant to steal bitcoin from wallets, as well as cyber attacks on exchanges.
Best practices to secure bitcoin merchant account
Two-factor authentication should be used on all PCs or mobile devices that run wallet software. Fingerprint recognition or a PIN should be required to open mobile devices. To protect against phishing attacks, bogus websites, and malware, antimalware software should be installed on all devices. Hardware wallets are safer than software wallets since they need physical interactions to confirm transactions and never reveal the keys.
To prevent computer failure, theft, and human mistake, any sort of bitcoin wallet should be backed up on a regular basis. Backups should never be uploaded on the internet, especially if they are not encrypted.
GnuPG and VeraCrypt, for example, are free and simple to use encryption programs. Keep wallet software up to date and use a safe and complicated password for each wallet and exchange. To prevent being duped into exposing keys, stay up to date on the latest bitcoin and cryptocurrency scams.
To avoid being defrauded, overcharged, or refused access to your money, thoroughly study any bitcoin service or software you want to use. Transactions in Bitcoin are solely pseudonymous.
So, if someone knows when, when, and how much a user spends, they may search the bitcoin ledger for the transaction and discover the wallet’s address, which can then be used to track spending habits. However, gathering this type of data through someone’s internet browsing activities is significantly easier.
Keeping bitcoin secure involves some forethought and work, but it is no longer as difficult or time-consuming as it once was. Anyone with a reasonable amount of bitcoin will find it well worth the effort.
Bitcoin isn’t just a trend on the internet. Dedicated hardware wallets strike a mix between security and convenience of use, boosting bitcoin adoption and usage.
Is the bitcoin merchant account a good investment?
For any business firm, HODLing a Bitcoin merchant account is a good investment. Bitcoin relies on a public, constantly updated ledger to keep track of all transactions. The buyer and seller communicate directly with one another, eliminating the need for third-party verification. As a result, it eliminates costly intermediaries and allows for the decentralization of businesses and services.
Another distinguishing feature of bitcoin is its openness to all parties involved. It’s similar to Google Docs in that many parties can simultaneously access the ledger in real-time. When you write a check to a friend today, you and your friend balance your respective checkbooks when the check is deposited. However, if your friend forgets to update their checkbook ledger, or if you don’t have enough money in your bank account to pay the check, things start to go wrong (which the bank has no way of knowing beforehand).
You and your friend would both see the same ledger of transactions if you used bitcoin.
Should I accept bitcoin payment for my business
Now that you’ve seen the majority of the benefits and drawbacks, it’s time to seriously consider taking bitcoin. Does it actually fit in your list of priorities, despite the fact that it may be a good addition to your company?
In the end, it comes down to the type of business you have. Before accepting bitcoin as a payment method, you must ensure that everything else is in order. Accepting bitcoin isn’t usually a life-or-death decision, so if you have more pressing concerns, you should address them before accepting bitcoin.
If you do decide to become one of the bitcoin-accepting businesses AND hODLing a bitcoin merchant account, make sure you do your research.
While the prospect of employing bitcoin is thrilling, making impulsive decisions could result in losses for you and your business.
One of the most significant benefits of a business to HODL a bitcoin merchant account is that they do not require the involvement of a financial institution as an intermediary. The lack of a “middleman” cuts transaction costs for retailers.
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