Accept payment in Bitcoins – How to accept them and its benefits
As bitcoins increase in popularity, companies have considered the idea of including bitcoins as a valid payment option. While cryptocurrencies like Bitcoin are known to be volatile in nature, they can be a fairly safe payment option if handled properly. The features that make it lucrative to accept Bitcoins as payments for companies include:
- Commitment to business’s competitive advantage
- Opportunity to open up to more customers worldwide
- Lower payment processing fees
What are the benefits and problems of Bitcoin payments?
There are many benefits that will make a company or individual accept bitcoin payments with open arms. One of the biggest benefits is the reduced payment processing fee. While other payment methods, especially when using a credit card, incur a processing fee of 3-4%, payments with Bitcoins charge nothing. This may not seem like a big deal, but it is a huge benefit for sellers and businesses.
While credit card companies largely favor customers, Bitcoin is a decentralized platform. So once the payment is made, there is no question of disputes. They also provide a good opportunity for companies looking to invest in cryptocurrency. In addition, they make international transactions easy and thus open up businesses for new customers.
Despite the many advantages that bitcoins offer as a payment option, there are also certain disadvantages. One of them is that even though Bitcoins are quite popular, most people still prefer traditional payment methods. And while there are customers interested in making payments through Bitcoins, there can be certain hiccups along the way, and with bitcoins, payments can sometimes be delayed depending on the network. There is also no support available in case of emergency or fraud.
Along with this, there is a constant fear of the crypto value suddenly dropping as they are known for their volatile nature. However, this can be avoided by immediately changing crypto to cash using a payment gateway. It may charge 1% of the payment, but it is still preferable to the 3-4% processing fees or incurring losses due to Bitcoin’s volatility.
How to accept Bitcoin payments
The processes businesses and individuals must take to enable Bitcoin payments are quite simple. However, it is always recommended to weigh the pros and cons before venturing into the crypto world. The steps to enable payments with bitcoins are:
Setting up a crypto wallet – after getting to know the rules and regulations, one needs to set up a crypto wallet to access the cryptocurrencies. Alternatively, it is also a good idea to set up payment gateways.
Adding them to payment processes – after you set up your wallet, the website needs to be updated to include the option to use Bitcoins as a payment method.
Integration with accounting software – this ensures that the Bitcoin transactions are recorded along with the rest of the business transactions.
Overall, accepting Bitcoin payments has its pros and cons. It is crucial for businesses to weigh the pros and cons and understand the risks involved before deciding to accept Bitcoins as a payment option.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
