New Tip Mechanism Makes Small Bitcoin Payments Possible

May 29, 2015

Digital wallet technology is changing the way that merchants interact with customers across the globe. Bitcoin is one of those technologies that make location irrelevant. Bitcoin is a form of digital currency that can be transferred from one user to another without calculating currency exchanges or going through a traditional payment processor like a bank. Recently Coinbase, a Bvitcoin wallet provider, launched a “tip” button that makes micropayments to web-site owners. Some believe this is a pivotal move in the way website owners can earn money from their fan base outside the traditional methods like ads and sponsors.

Coinbase states that the button gives fans a way to make immediate and measurable contributions to website owners. The rate that websites are being paid for clicks is currently 300-bits or 10 cents. This rate can change from week to week as the value of the Bitcoin fluctuates. This can be a blessing and a curse for owners as one day they can get paid a generous amount from fans, but the next week they may not receive as much income because the Bitcoin’s value has dropped.

Thus far, one-third of orders on Coinbase have been less than $1. Despite the fluctuations in the Bitcoin rates, Coinbase creators believe that their system has an advantage over traditional payment networks, because traditional payment methods are too costly to support micropayments. So far the early adopters of micropayments have been podcasters and bloggers. Many of these websites position buttons at the bottom of the web pages which display the amount of tips paid.

Sometimes micropayment buttons display dialog boxes that give visitors the chance to use a Bitcoin address or Coinbase wallet. Bloggers are not the only ones interested in the technology though. Major companies like Square Inc. have announced an intention to accept Bitcoin transactions. Plus Bitcoin itself is also expanding into online marketplaces like Amazon and eBay Inc. recognizes that the world is changing and that Bitcoin and technologies like it may be the future. That’s why the high risk merchants of the world’s best online payment processor have developed the necessary tools to manage your Bitcoin merchant account. Contact us to learn how micropayments can expand your business.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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