Back in 2009, Bitcoin was introduced as a radically new “financial system” that was intended to take the place of the current fiat currency system. There are some crypto aficionados that would like to see the fiat currency system switched over to crypto. On the other hand, many economists argue that fiat can never be replaced by cryptocurrency.
When it comes to accepting crypto as payment, most businesses are still not convinced. Some of the most common concerns businesses have about crypto include its extreme volatility, misinformation as to how to keep their crypto safe, and confusing regulatory and tax schemes.
Despite these concerns, according to CoinMap, there are already more than 19,000 businesses worldwide accepting Bitcoin. The main reason is that it is the primary way of reaching out and connecting with the ever-growing customer base of cryptocurrency users. These users have decided to go with Bitcoin as their preferred currency versus fiat. Another plus to accepting cryptocurrency is its potential to save you money.
How Does Accepting Crypto Save You Money?
When you accept credit cards for your business, you will need to pay card acquiring fees. This can negatively impact your net profit. This is especially the case if your business has been categorized as high risk by banks and traditional processors.
The beauty of crypto payments is the absence of banks. They play no part in any of your transactions and with that comes more benefits such as no acquiring costs. Your only financial responsibility will be for the processing fee attached to your payment gateway, which is a mere 1%.
Those businesses who welcome Bitcoin and other cryptocurrencies are then able to lower their administration fees. This gives them the freedom to provide more appealing prices for their customers. Doing so grants them a higher margin than if they only accept fiat.
According to Cryptoprocessing.com, a payment provider, its calculations based on its 230+ partner merchants showed that they saved 50-70% in processing costs.
Accept Crypto Payments The Right Way
Most of the fears that businesses have are rooted in misconceptions. It is vitally important that business owners become more knowledgeable as to how cryptocurrencies really work.
The fundamentally important rule to follow is this: never accept Bitcoin on your own. Never ask your customers to transfer their crypto into your blockchain wallet. By doing so, you will be inviting problems.
The right way to accept crypto payments is to form a partnership with a reputable and trustworthy crypto payment company and incorporate their payment gateway into your website. The crypto payment service provider will handle everything including the transaction tracing all the way to final fiat settlements. Merchants also have the option of not handling the crypto at all.
Crypto PSPs Will Protect Your Money
If you are still not convinced, consider this. When you partner up with a large and reputable payment service provider, know that some payment gateways have their own compliance department and even a Money Laundering Reporting Officer (MLRO). This department specializes in tracking “crypto flows”, monitoring of transactions 24/7, and ensuring that every crypto that is received by the merchant is actually “clean”. All suspicious movement is flagged for your protection.
Also, there is a rampant myth that claims crypto cannot be traced. This is untrue. Bitcoin, for example can be traced back up to 10 blocks to determine if it was involved in any questionable activity.
Get Informed About Crypto, Your Bank Account Will Thank You
It is understandable that many businesses are still apprehensive about making a move to accepting crypto as payment. This decision must certainly not be taken lightly. However, seek a large crypto payment service provider that has a proven reputation and expertise and they will ease your worries with the facts.