As the forerunner of the digital currency, Bitcoin continues to make waves in the financial space, driving more usage by not only customers but also major corporations.
The Rise Of Bitcoin
To say that the popularity of Bitcoin and its successive counterparts has exploded is truly an understatement. In February 2021, MSN.com reported that Bitcoin’s total market cap had surpassed $1 trillion. Not only has Bitcoin experienced massive growth but also Ethereum, Litecoin, and Polkadot have all been growing considerably.
It is no wonder that massive corporate giants such as Tesla, Microsoft, AT&T, and Overstock have also started to accept Bitcoin and other cryptocurrencies as payment in 2021.
You don’t have to be a behemoth of a company to begin accepting crypto. In fact, the only thing you need is a reliable and trustworthy merchant account provider that specializes and is well-versed in the crypto industry.
What Is A Bitcoin Merchant Account?
A Bitcoin Merchant Account enables merchants to accept payment in the form of Bitcoin. Merchants are able to receive these payments from anywhere around the world. They can do so on their own website, in person, through e-mail, and even at physical store locations.
The Benefits Of Opening A Bitcoin Merchant Account
As one of the most popular digital currencies, Bitcoin continues to enjoy adoption worldwide. If you are a small business that has not yet considered accepting Bitcoin, you may need to look closely at the benefits that it offers.
- No chargebacks
Chargebacks can severely damage a business, placing its payment processing privileges in jeopardy. They are more commonly seen in credit and debit card transactions. When a credit card chargeback occurs, the merchant is responsible for paying for the reversed transaction. But that is not all, merchants can also be on the hook to pay between $5 and $25 in penalty fees.
However, by accepting Bitcoin, the transaction is irreversible, unless a Bitcoin merchant makes the decision to reverse the transaction.
- Low transaction fees
Both debit and credit card processing fees have always been considerably higher than Bitcoin Merchant Account fees. Small businesses have been known to pay from 2% to 4% in credit and debit card fees. And that does not include additional “hidden fees” that later show up in their credit processing statement.
Most cryptocurrency exchanges change only 1% for every transaction.
Customers who pay in Bitcoin do not have to worry about experiencing identity theft, whereas credit card holders do. The great plus about Bitcoin is that users are not traced because no identifiable personal information is disclosed such as names, billing, or home addresses.
Bitcoin offers payments that are done instantly. Whereas credit card payments can be bound for as much as two weeks. If there is a dispute in the transaction, count on it to be held back even longer.
The speed at which a Bitcoin transaction occurs could be likened to the speed of sending an e-mail. When a customer happens to pay with Bitcoin, not only will the merchant receive the payment, but they can also convert it to fiat currency immediately. When the funds are sent to the merchant’s account, the funds will be available in 2 business days.
- Expand your customer base
The great advantage of using Bitcoin is the fact that it uses blockchain technology. What this means is that all their transactions are not governed by financial institutions, governments, or even geographical borders.
By acquiring a Bitcoin merchant account, you can sell your products and services around the world. There is no need to be concerned about cross-border transaction fees.
How To Set Up A Bitcoin Merchant Account
When it comes to opening a Bitcoin Merchant Account, one thing to keep in mind is that payment service providers have to be extra careful and need to scrutinize merchants closely when they apply. Be prepared for a fairly drawn-out verification process. This is mostly because money laundering is a huge problem.
As a result, you will be required to supply the payment service provider with a number of documents. Also, do know that you might need to offer a detailed explanation as to how you plan to mitigate money laundering and other criminal activity.
The documentation required will greatly depend on the provider you choose. For now, be prepared to have these documents ready:
- Transaction history for processing your payments
- Valid ID from the company’s owner as well as any company directors
- Certificate of incorporation
- To confirm the company’s location, provide bank statements, rental agreements, or utility bills
In addition to having these documents at the ready, you may need to have your website adhere to the following requirements:
- Terms and conditions page
- Have the company name shown in the footer
- Policy page for refunds and deposits
- Display phone number and e-mail for contacts or inquiries
Once all of the aforementioned has been prepared, it’s time to apply for a Bitcoin Merchant Account. You simply apply online directly on the provider’s website. Once all paperwork and documentation have been submitted with the application, the underwriter will carefully examine all information submitted. A decision can be made in as little as 24 hours or a few business days.
After you have received news of approval, you will be able to accept Bitcoin as a form of payment on your website.
Open Your Bitcoin Merchant Account Today
As we have discussed, opening up a Bitcoin Merchant Account could be the best strategic decision you make for your business. As the number of users of cryptocurrencies continues to soar, the ability to take crypto payments will be a necessity.
Ensure that you take the time to secure the best Bitcoin Merchant Account provider in the industry to ensure all of your payments are fast and secure. Not only will your customer base grow considerably, but so will your bottom line.