Crypto Merchant Account: Finding the Best Cryptocurrency Payment Processor
Cryptocurrency is more than just another payment method; it’s a significant addition with unique advantages that can help you outdo the competition. Both major corporations and small businesses are interested in crypto currency merchant processing, and the number grows weekly. Even brick-and-mortar stores have Bitcoin-enabled point-of-sale (POS) terminals.
Why Accept Cryptocurrency Payments
If you’re a business owner with an online presence, integrating a crypto payment gateway into your website can help your business grow and succeed for the following reasons:
- Cryptocurrency saves you money
Over the years, merchants in the U.S. have paid more than $78 billion in credit and debit card processing fees. With crypto merchant services, there’s no need for a bank to verify each transaction because cryptocurrency is decentralized, effectively eliminating those fees and saves you 2-5% for every transaction.
- Transactions are quickly processed
In this era of fast technology, waiting for days for your funds to become available is impractical. Fortunately, cryptocurrency comes with high-speed transactions, which are processed real time or within a few minutes.
- Fraud and chargebacks are avoidable
All crypto transactions are final and irreversible once they are added to the blockchain through mining, making cryptocurrency comparable to cash: you can only spend what you have on your wallet. Plus, both parties need to approve the transaction, so there’s no need to worry about disputes and chargebacks.
- Cryptocurrency works globally
International currencies are invaluable in e-commerce, especially when your business thrives in exporting products or services. Cryptocurrency also helps you avoid costly exchange rates and foreign transaction fees.
- You can reach new customers
Casting a wider net to attract more shoppers and expand your customer base by offering more payment options will help you grow your revenue. By giving your customers the payment method they prefer, you’re increasing the chances they’ll complete their intended purchase and reduce shopping cart abandonment rate.
To make these advantages a reality, you need to find a suitable crypto currency merchant processing service for your business.
What is a Cryptocurrency Merchant Processor?
In a nutshell, the best crypto payment processor will enable merchants like you to receive payments in cryptocurrency from customers and other businesses for the goods and services sold or delivered. Much like a standard credit or debit card processing service, a crypto merchant processor takes care of:
- Securely recording the transaction and the necessary payment details
- Authenticating credentials
- Enabling the fund transfer
- Issuing confirmation to all parties involved
As the intermediary between the payer and receiver, crypto payment processors allow merchants to accept crypto payments without worrying about the complex background process.
The Importance of Cryptocurrency Payment Processor
There is more to the importance of partnering with a cryptocurrency payment processor aside from adding a “pay with bitcoin” button on your website and processing crypto transactions on your behalf. It’s only the tip of the iceberg.
There are licensing and registration requirements and tax implications for crypto-related businesses. While it is clear that a business who merely accepts cryptocurrency as a payment method has no obligation to obtain a license, the laws are not always sharply defined. In fact, it is advised that merchants should stay updated with developments in state and federal laws which may affect them.
In the U.S., an IRS guidance was issued in March 2014, concluding that Bitcoin and other cryptocurrencies should be treated as property, and not foreign currency. This means that for tax purposes, acquiring such property requires a record of fair market value. When the asset is exchanged, the owner has a taxable gain if the value increased. However, if the fair market value decreased, then the owner has a loss. Applied to cryptocurrency, wherein extreme price volatility is well-noted, this presents an impractical and time-consuming problem. As the value of an individual bitcoin may vary depending on its market price at the time of the transaction, computing gains and losses would be a gargantuan task.
Luckily, there’s a workaround: cryptocurrency payment processors can save you from the legal and operation problems and record-keeping issues by acting as the intermediary and converting the cryptocurrency to the currency of your region.
Choosing the Best Crypto Merchant Services
Before engaging with a crypto payment processing provider, you need to ask a few questions to ensure that you’re getting the best for your business needs:
- Is the processor licensed and registered?
You need to confirm whether your potential cryptocurrency payment processor is properly registered and in compliance with Financial Crimes Enforcement Network (FinCEN) regulations, such as the anti-money laundering compliance program, for security and protection.
- How much are the fees?
There are plenty of providers with affordable rates. Note though, that cheaper is not always the better option. Contact EU Paymentz now to discuss the cryptocurrency payment processing rates.
- Which currencies are supported?
Your options are not limited to Bitcoin. Know if the provider supports other digital currencies, such as Litecoin and Dogecoin so you can also accommodate payers who use and prefer other currencies.
- What are the privacy protections?
Cryptocurrency is lauded not only for its quick transactions and decentralized system, but also for its ability to allow users to transact anonymously by using a pseudonym. Make sure that your provider also has strong privacy practices that mesh with your own.
- How’s your provider’s customer service?
As with any service provider, you need to do your research and see how well the processor handles technical issues, billing disputes, and even inquiries. Learn how much time it takes for them to respond, and what customer support channels they offer (live chat, phone support, etc.). Speedy and effective assistance is key to maintaining seamless cryptocurrency payment processing, available for your customers to pay you with bitcoin anytime.
How To Get a Cryptocurrency Payment Processor
Getting a cryptocurrency payment processor can be quite easy. Contacting a representative is your first step in knowing the requirements and rates, which may vary depending on the service provider. As with credit card merchant account providers, requirements typically include:
- Know-your-customer (KYC) documents
- Payment processing history (statements with company name and details on chargebacks, refunds, returns, and total sales)
- Business banking statements
Approval time generally takes 48-72 hours, but it may take longer depending on:
- Your industry type
- Your payment processing history
- The acquiring bank
At EU Paymentz, we offer crypto friendly payment processing so your business can reap the benefits of accepting cryptocurrency. Call us to learn more about our services.