Accept Cryptocurrency Merchant Payments For Your Business
Most news media reports prefer to focus on the volatile nature of the crypto industry rather than agree that the popularity of bitcoin and other crypto coins stands at an all-time high. To properly accept cryptocurrency merchant payments like bitcoin and other cryptocurrencies, merchants use a cryptocurrency merchant account.
The last quarter of 2019 saw over 42.31 million blockchain wallets created. Over the last 3 months of 2020, there were 54.27 million blockchain wallets, which is an astronomical increase of 38%.
With top-tier businesses like Nordstrom, Whole Foods, Shopify, Overstock, Subway, Expedia, Barnes and Noble now accepting cryptocurrency, it goes on to show that the cryptocurrency industry is growing in reach and popularity.
Technology is advancing and the way business has been conducted is now changing. It is no longer one dimensional and the need to accept bitcoin payments and other crypto-related payment methods has increased dramatically.
The evolution is here and the end result is that businesses are now accepting crypto payments for their goods and services.
By providing alternative ways of accepting payment, you not only stay competitive, but keep up with customer demands and personal preferences.
Now, more than ever, it is important to start thinking about ways to accept cryptocurrency merchant payments for your business.
What is Cryptocurrency?
Cryptocurrency is a form of digital or virtual money that uses encryption technology to process transactions.
Bitcoin is the largest virtual currency in the world with over 20.5 million addresses having at least $1 worth of Bitcoin.
Presently, there are over 4,000 currencies in circulation, the most popular coins include Monero, Litecoin, Ethereum and Dash.
Why You Need a Cryptocurrency Merchant Account
Apart from the need to strategically operate your business in an ultra-competitive digital space, while meeting customer demands and adapting to cutting-edge trends, there are other reasons why businesses need to accept cryptocurrency merchant payments.
The first reason is that the crypto decentralized payment structure allows payments to be transferred mostly without third party involvement.
This is good news for merchants as they do not need to worry about hidden transaction fees.
Another benefit of a cryptocurrency merchant account is the iron-clad security it offers.
Blockchain uses multi-layered encryption technology that provides additional security during transactions. It also whittles down the threat of fraud and identity theft.
If you own a high-risk business, you must be aware of the threat excessive chargebacks pose to your business.
The good thing is that a cryptocurrency merchant account eliminates this problem.
Additionally, cryptocurrency processing charges are way lower than credit card charges. There is also no need to worry about international charges accrued from businesses across borders.
A crypto business account allows you to uniquely stand out and cater to a wider audience, particularly a younger demographic that is obsessed with cryptocurrency.
Research shows that businesses that offer cryptocurrency payments as a payment option for goods and services score high marks for thoughtfulness and satisfaction among customers.
Accept Cryptos for Your Business
A secure payment gateway and point-of-sale are important items for businesses looking to accept cryptocurrency payments online and offline.
However, many credit card processors and a majority of acquiring banks do not offer these crypto coin processing services because of risk volatility.
These institutions are cautious about processing digital currencies in real time because the market is somewhat unstable with substantial volumes of virtual money being processed daily.
Another reason why blockchain virtual currencies are regarded as high risk is because unlike other financial sectors, the industry is largely unregulated.
This challenge is further exaggerated by a lack of understanding of how the industry works.
The crypto industry also carries a bad reputation for being the legal tender of the dark web which facilitates illegal and criminal activities.
Many banking institutions and financial circles associated with the crypto industry can be viewed as a reputational risk and prefer to stay away, as long as they can.
However, this development has given rise to reputable high risk merchant account providers that understand the industry and are capable of opening crypto merchant accounts, irrespective of the many challenges associated with the industry.
It is nearly impossible to open a crypto merchant account without assistance from these experts.
Reducing Your Risk
Merchants are powerless when it comes to the unpredictability and volatility surrounding market prices in the crypto industry.
But there are ways to protect businesses from these drawbacks.
With the number of cryptocurrency users growing by the day, it is vital for merchants to enlighten customers and ensure they understand the terms and conditions that come with making purchases.
Key points include:
- Communicate all risks associated with crypto transactions. Ensure that considerable risk of loss is emphasized again and again.
- Be careful when making bogus marketing claims and focus on the realistic benefits your product or service provides.
- Never undersell the risk and oversell the opportunity, particularly with financial products.
- Be wary of over-the-top advertising methods and affiliate programs that hype your product unnecessarily.
- Offer detailed and crystal clear terms of engagement as well as agreements of customer satisfaction.
- Do not hide the risks behind complicated legal language.
- Pay close attention to the customers you are attracting with your offers.
- Make sure you are targeting customers capable of making decisions for themselves and fully aware of what they are getting into.
Providers that can help you open a merchant account for cryptocurrencies do so by managing industry risks through industry experience, meticulous underwriting and strong partnerships with financial institutions willing to take on this new emerging market.
The processor that you decide to do business with should have significant industry experience and a track record in offering unwavering support with their crypto merchant services.
Choose a provider with a solid high risk merchant approval rating in the industry. Make sure whatever terms they offer are well suited to your business goals and within your budget.
Conclusion
Cryptos are globally accepted which in turn makes merchants more competitive by giving them access to more customers.
Consumer preferences are shifting with technology. It started with physical cash and plastic money and now digital currencies are on the rise.
A merchant that is able to accept cryptocurrency merchant payments leverages new opportunities and opens the door to even more customers.
The best crypto currency merchant providers always save you more money, reduce your risks and offer a safer and faster way of accepting digital payments.
