In order to understand how cryptocurrency works, it’s helpful to know a little about blockchain. Namely, that blockchain is a type of database that can record and distribute digital information while preventing it from being edited. First, you must decide whether to use a processor to accept payments or accept them manually.
One of the most significant differences between cryptocurrency and credit cards is the former’s volatile value. While credit cards can also be subjected to currency fluctuations, the regulated nature of fiat currencies makes credit cards a more stable payment method than crypto. On the other hand, using cryptocurrency to accept payments is far less expensive than credit cards because it is not as heavily regulated.
How to start accepting B2B crypto payments
PayPal also converts cryptocurrency to fiat currency to pay the merchant. Now it's time to incorporate cryptocurrency as a option in your checkout process and at your point of sale. Some payment processors like PayPal have crypto built into their checkout solution, so accepting crypto from customers can be simple. PayPal even converts the cryptocurrency to fiat currency, like traditional US dollars, to pay the merchant. There are no size restrictions on businesses that can accept cryptocurrencies. Accepting bitcoin and other crypto payments as a business owner can keep your business competitive, open your business up to more customers and potentially lower your payment processing fees.
This can easily be set up by integrating bitcoin transactions with your current accounting software. While bitcoin transactions are usually instant, sometimes they can take time to confirm and reach the sender, depending on the network activity. However, once payment is initiated through the network, it cannot be reversed. Credit card payments, on the other hand, are processed immediately, but customers are able to dispute payments after they’ve been processed. Anna is a retail expert writer for Fit Small Business, contributing to our POS and payments sections.
Final Thoughts on Cryptocurrency Gateways
Before you start taking crypto tokens for your products and services, however, you should narrow down what tokens you will accept so you can list them on your website. However, it can be tough to know how to start accepting Bitcoin and other crypto tokens on your website if you haven’t done it before. Today, let’s break down how to accept crypto as a business in a step-by-step process. For Roadway Moving, accepting cryptocurrency made business sense because the company occasionally handles international moves and jobs that come in at five or six figures. You’ll also want to consult with your accountant and make sure you’re clear on the tax implications and reporting requirements of accepting digital currencies.
You can check out our list of supported crypto tokens right now for more information. The answer depends largely on your customer base, business model and desire to learn about crypto. Finally, you need to decide whether your business wants to HODL the crypto in a secure wallet, put it in a crypto bank to earn interest or convert it to fiat upon receipt. These platforms are designed to automatically convert your Bitcoin into cash, thereby mitigating volatility issues that can cause fluctuations in your crypto’s value.
How Do I Accept Payments With Cryptocurrency?
Businesses should keep invoice copies that include bitcoin’s price at the moment of the transaction. Bitcoin’s market capitalization grew by 187%, many popular coins reached new all-time highs, and some even offered five-digit https://www.xcritical.com/blog/how-to-accept-cryptocurrency-bitcoin-ethereum-litecoin-and-others/ percentage returns. According to CoinGecko, the total cryptocurrency market cap surpassed $3 billion in Nov. 2021. Overstock uses BitPay plugin to accept Bitcoin as a payment method on its online checkout.
Be ready to grab every opportunity to stand out and thrive in today’s dynamic market. PayPal makes it easy for customers to pay using their cryptocurrencies. PayPal will automatically convert crypto to U.S. dollars for the merchants. This option https://www.xcritical.com/ is geared toward offering more payment options for customers while still allowing the merchant to deal exclusively in fiat currency. For crypto-savvy business owners interested in taking Bitcoin during in-person transactions, QR codes can help.