Cryptocurrencies are no longer flavor of the month. They have rapidly grown in popularity to become part of the fabric of worldwide commerce and finance in a very short space of time. Business owners now recognize the need to obtain a cryptocurrency merchant Account.
Not only has Bitcoin hit the headlines with record valuations, as well as price drops, but it has become a usable currency in its own right. Bitcoin debit cards are available too for online purchases as well as ATM withdrawals. This is called virtual, or crypto, payment processing.
That is something that savvy business owners must take note of.
Why you need a cryptocurrency merchant account
With close to 2,000 different cryptocurrencies in existence, demand has risen for merchants to accept this form of payment. Those who don’t could be leaving money on the table.
However, regular merchant accounts do not handle these currencies. Even long-established businesses find it difficult to obtain a merchant account that accepts virtual/crypto payments.
You need to identify specialist payment processors, such as SecureGlobalPay, who can organize the type of crypto payment processing solution you need.
Be aware that you do not need to handle the cryptocurrencies yourself. The payment processing service converts them into your regular bank account currency (e.g. US Dollars).
Fiat currencies and cryptocurrencies explained
The word “fiat” is Latin for “create” or make it so, as Captain Picard might say. Let there be light would have been “fiat lux”. That is how the Euro came to be.
One day, the European Central Bank decreed “Let there be a new currency called the Euro.” Sure, that was after many years of planning and negotiations, but that is more or less how all currencies came into being, even the US Dollar. Some evolved gradually while others arrived almost overnight.
The value that we assume exists in a paper dollar is technically backed by the Government through the Fed. In theory, a country could maintain gold reserves as a physical indicator of the value behind its currency.
Cryptocurrencies have no such backing or validation. Their valuation is based purely on their scarcity, in combination with the natural law of supply and demand.
Supply is strictly limited and controlled by a decentralized system of thousands of computers all over the world. Demand is driven by those who see value in owning a cryptocurrency such as Bitcoin and those who accept it as payment.
Why are cryptocurrencies a popular payment medium?
There are two primary reasons why some customers prefer to use cryptocurrencies to pay for goods and services:
Extremely high security – The computerized network of a major crypto like Bitcoin or Ethereum is distributed over hundreds or even thousands of computers. Transaction details and account balances are locked in and totally tamper-proof thanks to a system called blockchain. It also means that all payments are guaranteed to be valid – no dud checks are possible.
Anonymity – No personal details are required when paying by cryptocurrency. In that regard it’s a bit like having a numbered Swiss bank account, which appeals greatly in certain circumstances where confidentiality is important.
6 Businesses benefits of having a cryptocurrency merchant account
- No chargebacks – This is a major benefit, as every merchant knows. Chargebacks cost both acquiring banks and merchants a lot of money. Cryptocurrency payments do not have a chargeback mechanism. Issues are resolved directly between the customer and merchant.
- Fraud greatly reduced – The blockchain ledgers underpinning cryptocurrencies are tamper-proof. If you receive a verified crypto payment, it’s guaranteed to be genuine even if you do not know the identity of the payer.
- Lower business costs – Transaction fees are lower than for regular merchant accounts that process credit and debit cards
- Fast clearance – Your payment arrives into your bank account much faster than with credit card payments – often within an hour or two.
- Global market – The world is your oyster because cryptocurrencies are global in nature. Unlike with foreign currencies, you don’t need a different currency for each country you sell to.
- Add-on to existing currencies – It’s easy to add any cryptocurrency to your existing processing system once you have the right kind of payment solution.
How to get a cryptocurrency merchant account
The best approach is to look for specialist merchant account providers who understand how virtual crypto payments work. We at SecureGlobalPay offer exactly such a service.
Click here to complete our online application form or call us on 1-800-419-1772 or contact us to speak to one of our cryptocurrency payments specialists.