Cryptocurrency Merchant Account
Benefits of a Cryptocurrency Merchant Account for Your Business
It has been a decade since the first cryptocurrency made its debut to the financial world, and it has become clear that this new form of commerce is only going to keep growing in popularity and global impact. Once considered esoteric artifacts of the Dark Web and the sole provenance of tech-obsessed programmers, bitcoin and other cryptocurrencies have made dramatic gains in legitimacy and recognition over the past ten years, with companies like Whole Foods and Nordstrom making moves to accept this form of payment. Many online stores, including the Xbox Store and Overstock.com, have been accepting Bitcoin transactions for some time already. With cryptocurrency users clamoring for more opportunities to use this payment method for the things they want to buy, obtaining a cryptocurrency merchant account is the logical move for any business seeking to expand their customer base and increase profits. In addition, the advantageous features of cryptocurrency transactions make it all the more appealing to accept as a payment method.
Understanding Cryptocurrency
Cryptocurrencies like bitcoin and its many competitors embody a new form of money: units of value that exist solely as data on the internet. Unlike conventional currencies, which are guaranteed by the government that issues them, cryptocurrencies utilize a decentralized method of control – a publicly visible encrypted ledger known as a blockchain, which tracks the ownership and transfer of cryptocurrency units and verifies that new units of the cryptocurrency are not created without authorization.
In essence, a person buys virtual coins and their ownership of those coins is logged in a decentralized database; when the person uses those virtual coins to make a purchase, the coins are “sent” to the seller via peer-to-peer technology (similar to file-sharing networks), and the changes to each party’s virtual balances are logged in the public ledger. The transaction itself is anonymous – only the individual’s balance is tied to his or her identity.
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What is a Cryptocurrency Merchant Account?
As a business owner, you’re almost certainly already familiar with standard merchant accounts: agreements with financial institutions to process credit and debit card transactions made by your customers, and deposit the funds into your bank account at the cost of a fee. A cryptocurrency merchant account is essentially the same, but it also allows you to accept payments in bitcoin and certain other cryptocurrencies.
Your customers can make their purchases by paying with cryptocurrency, but you will receive their payment in your account in your normal preferred currency, such as US dollars. You never need to own or use cryptocurrency yourself, and the amount you receive from cryptocurrency transactions doesn’t fluctuate with volatile cryptocurrency exchange rates; if you sell a product listed for $100 USD, you will receive $100 USD (minus the normal processing charges), regardless of the current value of a bitcoin.
Customized, safe, and secure cryptocurrency payment solution.
Fully-customizable and brandable cryptocurrency payment solution
Wallet and cryptocurrency agnostic
Process unlimited transaction sizes and monthly volumes
AI transaction validation
Source of fund tracking
eCommerce plugins and POS integrations
Asset Management System
Easy setup with iOS and Android apps
Full KYC + AML compliance
Zero blockchain confirmation
Why You Need a Cryptocurrency Merchant Account
It’s just common sense that the easier you make it for your customers to pay you, the more money you will bring in. Currently, tens of millions of people across the US and worldwide own and make purchases with cryptocurrency, and a sizable chunk of the global consumer base would like the option of using cryptocurrencies to buy things. By opening the door to this form of payment, you ensure that your business isn’t missing any opportunities to gain customers or make sales, and you help to prepare your business for a future global marketplace in which cryptocurrencies will only become more widely used.
1. No Chargebacks
Any business owner with a standard merchant account for debit and credit card processing knows the pain and frustration of dealing with chargebacks. Each time a customer disputes a transaction and a chargeback is issued, a potentially lengthy and stressful challenge process begins. If the chargeback is resolved in the customer’s favor, not only does the merchant lose the income from the transaction, but they may also be penalized by their payment processor. Too many chargebacks can even result in account termination. However, this problem simply doesn’t exist with bitcoin and other cryptocurrencies. There is no mechanism in place for a customer to initiate a chargeback, or interrupt or dispute a transaction. Any complaints or concerns are addressed directly between buyer and seller, and any resulting refund is handled in the same manner as any other cryptocurrency transaction.
2. Fraud Reduction
Cryptocurrencies could not exist without an inherent mechanism in place to ensure that transactions are legitimate, even without knowing the identities of the parties involved. The blockchain ledger system provides independent verification for transactions, making cryptocurrency purchases much less vulnerable to fraud than credit card transactions.
3. Lower Processing Costs
The fees you pay per transaction for cryptocurrency payment processing tend to be markedly lower than those for traditional credit card processing merchant accounts, in large part due to the reduced risk to the payment processor as a result of the reduction in chargebacks and fraud. Merchant account transaction rates are generally determined by the perceived level of financial liability taken on by the acquiring bank, so less risk for your merchant account provider equates to lower fees for you.
4. Quick Transaction Clearance
Because the transfer of cryptocurrency via peer-to-peer networks happens so quickly, your payment processor has the funds in-hand to deposit into your account in a fraction of the time it would take a credit transaction to complete. A cryptocurrency payment may arrive in your account within a couple of hours, compared to the several days it often takes to receive credit or debit payments.
5. Global Access
Thanks to bitcoin and its fellows, users on every continent can make payments in the same currency. Normally, if you wanted to do business with customers in Argentina, New Zealand, Japan, Sweden, Canada, and the United States, you’d need to be equipped to accept six different currencies, with the associated concerns over exchange rates. A cryptocurrency merchant account allows you to expand your customer base across the globe with much less hassle.
6. Easy and Smooth Integration
With the right payment processor, incorporating cryptocurrency processing into your merchant account is simple. Durango Merchant Services can help you merge cryptocurrency processing into your online shopping carts, POS systems, terminals, and mobile payment processing solutions. We can quickly and easily prepare you to accept bitcoin and six other popular cryptocurrencies, with no limit on transaction sizes or monthly sales volumes for cryptocurrency purchases.
The future of currency
Within ten years, cryptocurrency has gone from an experiment in entrepreneurial programming to a worldwide economic phenomenon. In the next five years, the cryptocurrency marketplace is only projected to expand further, and smart businesses will leap to stay at the front of this rapidly expanding revenue stream. If the current and future potential for increasing one’s customer base was not enough reason to incorporate cryptocurrency payment processing into your business model, the dramatic reduction or complete absence of so many of the problems that plague standard payment processing – namely, fraud and chargebacks – offer a compelling argument in its favor. Durango Merchant Services can help you get your cryptocurrency merchant account up and running quickly and easily, with solutions tailored to your business.
