How To Get Started With Crypto Processing For Your Online Business

Crypto payments have become a popular option for small businesses due to the availability of user-friendly platforms and apps. While cryptocurrencies are currently viewed as investments, they function as peer-to-peer payments due to their decentralized and unregulated nature. Unlike traditional credit card payments, crypto payments are transferred directly between digital wallets without any intermediary involvement.

How It Can Benefit Your Business

Accepting cryptocurrency offers many benefits for customers and merchants alike. The first benefit is the elimination of intermediary fees, which reduces transaction costs and increases profits. Moreover, crypto payments are more secure than traditional payment methods as they are not subject to chargebacks or fraudulent activities. With crypto payments, customers have more options when deciding how to pay you for goods and services. This can have a positive impact on customer satisfaction and retention rates.

Step-By-Step To Accept Crypto

Introducing digital currency as a form of payment in your business operations can seem daunting at first. However, with the right knowledge, it shouldn’t be too difficult. To implement this method of payment, the following steps must be followed:

Understanding Cryptocurrency And Its Regulations Is The Initial Step

Cryptocurrency is a digital currency secured and encrypted by blockchain technology that exists solely online and is not regulated by any government or entity. As of June 2022, 30% of small businesses accepted it as a form of payment.

When considering whether to accept virtual currency payments for your business, keep these points in mind:

1. Observe state laws for cryptocurrencies, as the crypto industry in some countries is a regulated sector, and businesses must comply with all the laws.
2. Review your cryptocurrency platform policy to ensure it is legal in your state and supports the countries you do business with. Not all platforms are legal in the US, for example, even if they allow businesses to convert user assets to US dollars right away.

Create a Wallet or Choose Payment Gateway

In order to store and utilize cryptocurrency, you need a crypto wallet. However, if you wish to receive payments in cryptocurrency and convert them into traditional currency, you will need a crypto payment gateway. 

Crypto gateways offer hosted or noncustodial wallets where customers can store their crypto funds. These funds can be converted to fiat money, such as US dollars, and deposited into your bank account. Using crypto gateways also helps to reduce risk because transactions are settled at the market rate at the time of the transaction, protecting you from potential losses if the value of the cryptocurrency drops.

Integrate Cryptocurrency Payments in Your Online Shopping Chart

After successfully setting up your cryptocurrency wallet and gateway, the next step is to integrate cryptocurrency as a payment option on your website during the checkout process. 

You can achieve this in two primary ways: 

• The first approach involves utilizing an open-source API, which involves custom HTML code to link your crypto platform with your website. This method offers greater control over your website’s design and functioning, but it requires technical knowledge that not everyone may be familiar with. 
• The second method is straightforward: through a plugin or app. Many eCommerce platforms offer the option where you only need to download and install the plugin/app onto your website. This alternative eliminates any technical intricacies, making it the ideal approach for those starting with crypto integrations.

Inform Your Clients & Invite Them to Use The New Payment Method

For retailers who have physical stores, accepting cryptocurrency can provide a host of benefits. Fortunately, there are several platforms available that allow for in-person crypto payments. To enable this payment method, consider incorporating a crypto-compatible QR code scanner or NFC terminal at your checkout counter. If you utilize a mobile POS system, it may be possible to integrate crypto payments with your existing setup.

Advantages of cryptocurrencies over traditional methods:

• Reduced Transaction Fees: No central intermediary leads to significantly lower transaction fees, which can fall below 1% of the transaction value when accepting cryptocurrency.
• Protection for Merchants: Decentralization safeguards retailers from dispute fraud since transactions are definitive and cannot be reversed.
• Increased Revenue: Cryptocurrencies help small enterprises reach foreign buyers and make hundreds of thousands of dollars.

How Much Will It Cost You?

When it comes to payment processing fees for crypto payments, the standard rate is lower than 1%. This is significantly cheaper compared to the average credit card processing fee, which sits at 3%, and even some ACH direct deposit fees, ranging from 1% to 1.5%. Certain providers offer an even lower transaction fee of just 0.5%, such as CoinPayments. However, it’s worth noting that some providers may add a network fee on top of the standard 1% transaction fee. It’s also important to keep in mind that there may be potential additional fees, such as currency conversion fees and withdrawal fees.

Final Thoughts

As cryptocurrency gains momentum, some are embracing this new digital currency while others remain skeptical. However, recent data reveals that almost half of US merchants have adopted cryptocurrency as a payment method, although the majority of these are larger businesses.

Whether you are a skeptic or a supporter, it’s crucial to understand how to accept cryptocurrency payments to increase conversion rates and stay ahead of your competitors. As cryptocurrency becomes more easily accessible, early adopters can gain a competitive advantage and enjoy its benefits early on. Don’t miss out on the opportunity to explore this innovative payment method for your business.