Bitcoin and similar assets are gaining popularity among individuals and businesses. Besides being some of the most prominent investment choices, cryptocurrencies are slowly becoming a means of exchange for thousands of modern companies.
Introduction to Cryptocurrency Payment Gateways
Cryptocurrency payment companies are the bridge that allows you to accept digital assets as a means of exchange for goods and services.
Specifics of Cryptoprocessing and Its Advantages
Cryptocurrency payment gateway cryptoprocessing involves integrating your merchant account. The channel lets you receive digital currencies for goods and services and convert them to your local funds.
How Do the Transactions Work?
When you let customers pay with cryptocurrency, here’s the typical flow:
- A customer pays for your product or service using crypto in-store or online.
- The paid amount is usually the same as the chosen asset’s market value at the checkout time.
- The transaction processor automatically converts the asset into your preferred local fund, like USD or EUR.
- The processor pays the fiat equivalent into your connected bank account at the time you specify in your service contract.
With cryptocurrency gateways, you don’t have to worry about swapping your paid crypto to fiat on an exchange. Third-party platforms go the extra mile to ensure your paid digital currencies are exchanged and that the equivalent amount in fiat lands in your bank account.
Advantages of Crypto
Here are some of the benefits of receiving digital currencies at your company:
1. Borderless Reach: Unlike fiat, cryptocurrencies are accessible globally. So, you can offer services to customers anywhere in the world, regardless of your location. The borderless transfer crypto offers can expand your market reach and increase sales.
2. Low Fees: Another perk of crypto payment gateway development as a merchant is the low transaction fee. Blockchain transfers typically incur lower costs than traditional options because they eliminate intermediaries like banks.
3. Fast Transactions: Unlike bank or traditional options, blockchain transfers are usually completed in minutes. So, you’ll have your money in your account in no time.
4. Better Security: Crypto funds run on a blockchain, making them more secure and transparent than conventional options. Moreover, once a customer pays with BTC, it is irreversible, mitigating chargeback risks and money laundering activities.
However, while crypto transactions have numerous perks, one major drawback of the exchange method is price volatility. Your asset’s value can significantly increase or reduce before its conversion to fiat.
How to Implement Cryptoprocessing in Your Business
Integrating crypto payment gateways into your business isn’t as complicated as it seems. You also do not need high technical abilities to accept Bitcoin as a merchant. Here are the simple steps to process blockchain payments at your company.
- Choose a reputable cryptoprocessor supporting multiple digital currencies
- Create a merchant account
- Add BTC to the checkout options on your mobile app or website
- Integrate your Bitcoin transactions with your accounting tool
- Start receiving BTC or ETH
Security and Legal Implications
As stated earlier, crypto offers more robust security and transparency. You can access every transaction publicly, and they are irreversible. In other words, the exchange model mitigates the risk of fraud because of its stern security measures.
Besides, there are legal aspects to pay attention to when you partner with the right cryptocurrency payment gateway development company. You can facilitate instant funds transfer and make your brand more flexible for customers/clients worldwide. You should only accept such payments if your state laws support them. Additionally, there are tax implications for accepting Bitcoin. The IRS mandates that merchants who accept BTC must pay capital gains tax on all blockchain settlements. Finally, you must monitor the value of each coin on the day your client pays and the day you sell or convert it.
Manually tracking these details can be tricky, but a reliable cryptoprocessor can provide all the information you need. However, before setting up a Bitcoin merchant account at your firm, understand the regulations in your location. These include the legal and tax implications, as the laws vary from one state to another.
