Cryptocurrencies are no longer the flavor of the month. Crypto Coins 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. With a cryptocurrency payment services account you can start accepting Cryptocurrency as a form of payment and have your coins converted into a fiat currency of your choice. SecureGlobalPay is the chosen merchant service provider for all the things related to Crypto acquiring.
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 for online purchases as well as ATM withdrawals. This is called virtual or crypto payment processing and/or crypto merchant services.
Crypto Coins or Cryptocurrencies are something that savvy business owners must take note of as you also have the ability to convert these Crypto Coins into a Fiat Currency of your choosing.
Why you need a Crypto Merchant Account
With close to 2,000 different cryptocurrencies in existence, demand has risen for both the merchant service provider and the merchants, to accept this form of payment or digital asset. Those who don’t could be leaving money on the table. You need a cryptocurrency merchant account service provider that supports these new currencies and SecureGlobalPay has you covered.
Regular merchant accounts do not handle these Crypto Coins and cryptocurrencies. Even long-established businesses find it difficult to obtain a crypto merchant account that accepts virtual and crypto payments and converts them into a fiat currency of their choosing.
You need to identify specialist payment processors, especially those that specialize in higher-risk and hard-to-approve merchant categories like SecureGlobalPay. They can organize the type of crypto merchant account or alternate payment processing solution you need.
Be aware that you do not need to convert the cryptocurrencies yourself. The payment processing service converts them into your regular bank account currency (e.g. US Dollars).
Fiat Currencies and Cryptocurrency Merchant Services 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 of its currency.
Cryptocurrency payment providers have no such backing or validation. Their valuation is based purely on their scarcity, in combination with the natural law of supply and demand.
Cryptocurrency payment services are 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 cryptocurrency merchants payments.
Why is Bitcoin Merchant Processing So Popular?
There are two primary reasons why some customers prefer to use Bitcoin merchant processing to pay for goods and services:
Extremely High Security – The computerized network of a major crypto like Bitcoin 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 with Bitcoin merchant processing and cryptocurrency payment services. In that regard, it’s a bit like having a numbered Swiss bank account, which appeals greatly in certain circumstances where confidentiality is important.
Is a Bitcoin Merchant Processor a Threat to Credit Card Companies?
Once upon a time, no one ever thought that plastic cards would replace physical money, now it is only a matter of time before cryptocurrencies replace credit cards.
To drive home this argument, let us compare a credit card company and a Bitcoin merchant processor. What advantage do you think a Bitcoin merchant processor holds over a credit card company?
Bitcoin merchant processors whittle down the risk of falsified charges which is rife with credit card users.
This vulnerability is exposed via a series of events that occur when cardholders swipe their cards or enter their details during a checkout process.
Even though these transactions only take seconds this information can easily be compromised.
Bitcoin merchant processors offer iron-clad services where cryptocurrency transactions are transferred from a buyer to a merchant. No account information is required because everything is recorded on an irreversible blockchain.
A blockchain is decentralized in nature and the cryptographic algorithm it uses protects it from cyber attacks–hacking a blockchain is virtually impossible.
No Interchange Fees
Credit card companies like Visa and Mastercard make plenty of money from interchange fees and most times the customer bears the brunt of these costs.
On the other hand, bitcoin merchant processor fees are almost non-existent as most platforms charge a low 1% fee.. This fee is much lower than what credit card companies or 3rd party providers like PayPal or Stripe charge.
Why a Merchant Account for Bitcoin is Better than Owning a Credit Card
Over 200 million people use credit cards in the U.S, but despite this popularity, millions of people in the country choose not to own one.
One reason for this can be attributed to their indebtedness, but there are other reasons why millions of people do not use credit cards:
- Huge interest rates
- Misleading minimal payments
- Numerous fees
- Damages credit score
- Hidden terms and conditions
A cryptocurrency merchant account for Bitcoin is not burdened with all these disadvantages. All it takes for anyone to own or sell crypto coins is to have access to the internet.. Someone in the U.S. can complete a crypto transaction with someone in Australia without any hassles. There are no foreign exchange rates to worry about.
Another fundamental difference why a merchant account for Bitcoin is better than a credit card is that transactions cannot be processed without the consent of an account holder.
This is a huge difference from a card-based system where merchants can keep your card number on file and charge your card with permission.
Bitcoin Merchant Services Are Here to Stay
Bitcoin merchant services can be used to process payments anywhere in the world. You are not limited by geographical restrictions and do not need to fork out expensive cross-border fees.
While a number of nations like the US, Japan, Singapore, and Switzerland have embraced crypto coins and allow merchants to operate freely, countries like China, Nigeria, Turkey, and Egypt have restricted its use or banned it completely.
In spite of this development, the overall acceptance of Bitcoin merchant services around the world remains encouraging and it is an indication that more people and businesses are willing to use them in transactions.
Bitcoin merchant services operate in a borderless economy and are not under the jurisdiction of any central authority.
Traditional card and merchant payment providers see the rise of Bitcoin merchant services as a threat to their existence but can do nothing to stop it because Bitcoin and cryptocurrency payment services are here to stay.
6 Reasons Why You Should Use a Cryptocurrency Merchant Account
- No Chargebacks – This is a major cryptocurrency merchant benefit, as every merchant knows. Chargeback’s 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 the 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 – Cryptocurrency merchant transaction fees are lower than for regular merchant accounts that process credit and debit cards
- Fast Clearance & Settlements – Your payment arrives in 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.
Merchant Services Cryptocurrency: Getting an Account
The best merchant services cryptocurrency approach is to look for specialist merchant service providers who understand how virtual crypto payments work. We at SecureGlobalPay , your premium merchant service providers offer exactly such a service.
Click here to complete our online application form or call us at 1-800-419-1772 to speak with a merchant service provider who understands the importance of accepting Crypto payments.