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23 August 2016
As Bitcoin is becoming more common and established, many retailers have started to offer a BTC payment option in their checkout process. According to statistics, there are over 80,000 forward-thinking retailers who have ready started to accept this digital currency as payment, including such major brands as Microsoft, Overstock, 1-800-FLOWERS, Virgin Galactic, and many others. If you want to follow the suit, just find a reputable and trustworthy Bitcoin payment processor who will handle all operations for a small fee.
Why Bitcoin Payments are a Hot Trend?
The Bitcoin network offers many advantages over traditional payment options like plastic cards or PayPal. First of all, the Bitcoin network works on a P2P basis and doesn’t involve any banks, so you will need to pay low or even no fees for your transactions. On average, such key market players as Visa or MasterCard charge a 2.5-3% transaction fee, while payments in Bitcoin will cost you just 0-1%.
Another benefit of integrating Bitcoin payments is that you make sales without the fear of returns, chargebacks and other financial fraud. And you don’t need to spend hundreds of dollars to achieve and report your company’s compliance with PCI DSS requirements, a reliable Bitcoin merchant solution and protected payment requests will suffice. And, cryptocurrencies can be received from all countries, so you can trade internationally without worrying about additional cross-border fees.
Adding Bitcoin to your payment options is not a difficult task – just decide whether you wish to handle transactions personally or via a third-party payment gateway. The first method is cheaper, but it requires more time, technical knowledge and skills. The second method is the easiest way to receive BTC from any person with a bitcoin address – you even don’t need to open a digital wallet.
Basically, Bitcoin payment processors work this way: you need to open an account, fill in all necessary information about your business, and then add several lines of code to your checkout or shopping cart script. When a user makes a purchase and transfers, for example, $30 in BTC, your payment processor will quickly convert this amount to fiat to avoid exchange rate risks and then send $30 to your card or bank account, minus a reasonable processing fee.
Bitcoin Merchant Solutions: Making a Choice
Stripe, a San Francisco-based payment platform, offers two ways to integrate Bitcoin payments into your business routine: using a powerful and customizable API or enabling them in Checkout, a special payment form for desktops and mobile devices. Checkout is translated into several languages, including such popular ones as English, German, French, Italian, Spanish, and Chinese.
When a customer decides to pay in BTC, Stripe shows them how much they need to pay and to what address the money should be sent. The Stripe’s processing fee is 0.8% for a transaction, the maximum fee is $5 for amounts over $625. You can cash out your payments via automatic bank transfers sent weekly or monthly.
Such financial giants as Expedia, Overstock, Intuit, Dell, and Wikimedia use the Coinbase payment system for Bitcoin integration. The company offers a large range of easy-to-adopt checkout pages, payment buttons, add-ons, wigets and an API for developers who want to build their own custom solutions.
Coinbase charges 1% to convert BTC to your local currency, but there is no fee for the first $1,000,000, so the company is a good choice for small businesses and start ups. All money received from your sales can be automatically cashed out on a daily basis to protect them from Bitcoin rate fluctuations. Typically, it takes up to 3 days to receive a bank transfer.
BitPay, one of the largest Bitcoin operators working with such popular brands as Microsoft, Virgin Galactic, Neteller, Valve, and Newegg. The company provides various ready-to-use merchant solutions and add-ons for most popular shopping carts available on the market, including Magento, Zen Cart, Drupal Commerce, OpenCart, WorldPress eCommerce, X-Cart, and others.
Bitpay offers three payment plans tailored to the needs of different organization sizes and types: Starter, Business, and Enterprise. You don’t need to pay any transaction fees if you make up to $1,000 per day, up to 30 transactions per month, For larger amounts, the company charges a 1% fee. Depending on the plan, you can set daily or weekly payments in dollars or euros to your bank account.
Cryptopay is a large UK-based service for buying and selling bitcoins and a merchant payment gateaway allowing businesses to accept Bitcoin and Litecoin on their websites without creating a digital wallet. The company offers an API for developers including a software development kit for NodeJS, Ruby and PHP and SSL-secured endpoints.
Cryptopay charges a flat 1% fee for buying, selling or accepting Bitcoin. To avoid cryptocurrency exchange rate risks, you can transfer your revenues to a bank account. In addition, you can also open a Cryptopay debit card for $15.00 to withdraw funds at cash machines or make payments at locations where Visa cards are accepted.
GoCoin, a payment gateway headquartered in Singapore, offers to integrate Bitcoin, Litecoin or Dogecoin payments into your actual operations, providing you excellent opportunities to reach a larger audience. After opening an account, you can take advantage of various plug-ins for such popular shopping carts as Magento, WooCommerce, OpenCart, Ubercart, osCommerce, and more. Plus, there is also an API for custom integrations.
GoCoin charges a flat 1% fee for completed transactions, with the opportunity to make payouts on a daily basis. The company also offers a referral program to attract new participants – you can get 0.25% of every transaction of your referred merchant.
Adopting Bitcoin as a payment method allows businesses to attract new customers and notably cut down their operational fees. It is especially important for companies dealing with low margin products and micro-payments ($5-$15) where the usual 2%-3% transaction fee can be a killer. Bitcoin payment solutions take just several minutes to integrate and provide the opportunity to get payments from all parts of the world. Your task is to find the most suitable gateway adequate to the type and size of your business.
Exciting articles several times a month