A most recent and increasingly popular trend in the payments industry has been accepting Bitcoins as payments. Gone are the days when consumers only used cards & cash for purchasing items. Alternative Payment Solutions like Instant Bank Transfer, E-wallets, Mobile Wallets and Bitcoins are a hit, especially among the younger demography.
So what is a Bitcoin? Bitcoins are a virtual currency traded using a peer-to-peer system. This digital asset is non-regulated. Buyers and users of bitcoin are usually self-governed.
Because of its growing popularity as a mode of payment, several merchants have started accepting Bitcoins as payments. However, finding a bank or a processor to integrate bitcoin processing with your business can prove to be a difficult task.
A High-Risk Industry
Bitcoin Industry falls under the High-Risk category. Merchants accepting bitcoins are labeled as High Risk.
The fact that these digital currencies are non-regulated makes financial institutions extremely wary of processing them.
A common misconception regarding Bitcoins is that they are traded almost exclusively for criminal reasons. Another issue being merchants require a merchant account provider that can convert Bitcoins in real-time since there is always an issue of volatility.
Benefits of accepting Bitcoins
Apart from being a fast-growing payment method favored by the tech-savvy generation to buy products and services, accepting Bitcoins has several advantages to you as a merchant:
– Lower Transaction Cost: Bitcoin processing fees are lower than credit card transaction fees.
– No Chargeback Risks: This currency has an irreversible payment structure which means once the transaction is done, the payment cannot be reversed. No possibility of a chargeback. This is advantageous particularly to the high risk merchants.
– Minimal Security Risk: Unlike credit card processing wherein the customers’ card details are used, payment in bitcoin does not use personal information which lowers security risks & frauds significantly.
– Choice of Payouts: You have the choice to receive payouts in either bitcoins itself or any other currency of your choice.
High Risk Merchant Account for Bitcoin Payment Processing
Most merchant account providers do not understand the challenges and complexities of the Bitcoin industry and will provide merchant solutions that will not suit your payment processing requirements. This may affect your business in the long run and can eventually lead to account termination.
Here, it becomes essential to obtain a Merchant Account that will enhance and provide the right services required to process bitcoin payments smoothly.
Team up with a merchant account provider that specializes in High Risk Merchant Account solutions that will help you with smooth integration of bitcoin payment processor in your system. These processors will also provide you with a Secure Payment Gateway to accept other forms of payment.