A processor is a software developed by a company, often a third party, appointed by merchants. It handles transactions from various channels such as credit cards and debit cards with banks. However, the increasing popularity of cryptocurrency as a mode of making online payments is catching on. Its advantages over the traditional methods of performing online transactions include enhanced transparency, security, and traceability.
Cryptocurrency is preferred by Customers
Every transaction made on a blockchain network is validated by smart contracts, and stored in a decentralized distributed ledger in interconnected blocks or nodes. This makes it near impossible to hack into the database and manipulate information, and any attempt to do so is immediately notified to network participants. Making payments using cryptocurrency also removes the necessity for the payee to share sensitive details pertaining to their bank accounts on the internet, eliminating any chance of identity theft.
Advantages of Cryptocurrency Payment Processors for Merchants
Most of the online businesses involve cross-border payments and micropayments, and cryptocurrencies are best suited to carry out these transactions. The use of Bitcoins and altcoins will also resolve the pain area of chargeback that merchants face. This problem not only results in a loss to the seller but also obligates them to pay an expensive chargeback fee.
Cryptocurrency can also do away with the 60-day duration of uncertainty that arises when a customer makes a purchase using their credit card. Cardholders are granted this period to file a dispute, and the merchant is therefore unable to claim ownership of the money till this window is closed.
This enhanced security is possible because any payment made on a blockchain network is recorded on interconnected nodes which are protected by impenetrable encryption. The resulting database is accessible to every participant of the network for audit and verification, eliminating the chance of allegations of wrongful charges or failed transactions.
Most Popular Cryptocurrency Payment Processors
Cryptocurrency is rapidly becoming a mainstay in the global retail e-commerce market with new payment processors coming up frequently. However, not all of them can be trusted to give to the user the quality and efficiency they promise. Here are five of the tried and tested payment processors that have received positive reviews from its users for you to explore:
CoinGate took off in 2014 with the aim to further the adoption of cryptocurrencies in the global market. Their product is built on a reliable payments infrastructure that meets the needs of both sellers and their customers.
Their app facilitates merchants to install and monitor payments from mobile devices with ease. The payment gateway additionally supports some 40 altcoins apart from Bitcoin, allowing merchants to expand the variety of payment methods that they offer to their customer base.
CoinGate also offers a range of plugins and enables the creation of Bitcoin payment buttons on different websites. A user can opt to withdraw cryptocurrency from their digital wallet in the form of EUR and USD to their bank, AdvCash or MoneyPolo account, or any Bitcoin wallet of their choice. Coingate charge a 1% fee on all transactions, which usually take about 1 hour.
Billbitcoins is rapidly becoming one of the most sought-after cryptocurrency payment processors. Merchants can accept Bitcoin payments at a reduced transaction cost with Billbitcoins, without being exposed to the volatility of cryptocurrencies. The compulsory interchange fee charges as seen in contemporary payment gateway is not applicable here, at least for the initial $1000000 of Bitcoin payments. Post that, a 1% processing fee is charged to convert Bitcoins to cash.
Users enjoy a system of speedy payments with Bilbitcoins because payouts are initiated here weekly, the overall process taking about just 5 to 6 days. Majority of the payouts are confirmed within minutes, eliminating any risk of a chargeback. A similar advantage is afforded to customers as well who will no longer have to wait for prolonged periods to receive refunds. Refunds can be made through a single click on the Merchant Account Interface.
One of the largest Bitcoin trade exchanges, Coinbase is also used for accepting Bitcoin payments for businesses. The payment gateway accepts Bitcoin, Litecoin, Bitcoin Cash, and Ethereum. Its merchant app enables instant conversion of Bitcoin payments to fiat currency. This feature prevents price volatility to affect the conversion of currencies.
Both online and offline businesses can opt for Coinbase merchant solutions to improve customer experience and provide more methods of payments to choose from.
Their website describes the company as a “boutique payment processor”, which is another way to describe the small yet dedicated team behind GoCoin. GoCoin offers an uncomplicated API for merchants who want to accept cryptocurrency payments. The many plugins provided by them can be integrated into a number of online shopping platforms.
Its customer service has earned rave reviews and has become something of a talking point among users. Its services include private billing, secure payments, no sign-up costs, and low fees. GoCoin is supported in multiple countries, offers payouts in US dollars, and charges a flat 1% fee on all transactions, making it highly appealing to merchants everywhere.
GoURL is compatible with every major Bitcoin wallet, and even includes Bitcoin debit cards, and therefore offers a great extent of anonymity. If a seller does not own a website of their own, they can opt for Monetiser Online to sell files, images, videos, and texts.
Managing orders are made simple because of the detailed payment breakdowns available here. GoURL does not levy a monthly charge, and the transaction fee starts from 0%. Transactions are closed within a swift 30 seconds in this processor and have proved to be extremely reliable.
GoURL enables several ways to make money including the sale of products, file downloads, and via selling rights to post on one’s website. Users can also customize their website’s Bitcoin payment box to add a personal touch.