How to Accept Bitcoin and Other Crypto Payments On Your Business

Accepting Bitcoin and crypto payments on your business is one of the toughest challenges for a retailer. Additionally, as a business owner, accepting bitcoin and other cryptocurrencies might help you maintain market competition, attract new clients, and possibly even reduce payment processing costs.

Accepting bitcoins may be especially enticing for high-risk merchants who have been turned down by traditional payment processors. 

Accepting cryptocurrencies at a business has become easier and more common over the last decade. However, it is still more difficult than merely gaining it as a person. Finding a payments partner (probably), working through integration questions, and planning your cash conversion strategy are all on the to-do list. This guide explains how to properly set up your business to take bitcoin payments and how cryptocurrency payments differ from accepting credit card payments.

How to Accept Bitcoin for Your Business?

Accepting bitcoin payments for your business will differ differently based on the web platforms you already use. Here are the fundamental actions to take:

1. Choose a Bitcoin wallet: The first step in accepting Bitcoin is to choose a secure Bitcoin wallet. A Bitcoin wallet is a software program that stores your Bitcoin balance and allows you to receive, send, and manage your Bitcoin transactions. You can choose from a variety of wallet options, including hardware wallets, software wallets, and web wallets.

2. Get a Bitcoin address: Once you have chosen a Bitcoin wallet, you will need to get a Bitcoin address. A Bitcoin address is a unique string of characters that is used to receive Bitcoin payments. You can generate a new Bitcoin address for each transaction or use a single address for all transactions.

3. Display your Bitcoin address: You will need to display your Bitcoin address prominently on your website or store so that customers can see it and make payments to you. You can also provide customers with a QR code that they can scan to easily make a payment to your address.

4. Integrate with a payment processor: To make the process of accepting Bitcoin as smooth as possible for your customers, you may want to integrate with a Bitcoin payment processor. A payment processor can handle the conversion of Bitcoin to your local currency, as well as manage the transaction fees associated with Bitcoin transactions.

5. Keep track of transactions: It is important to keep track of all Bitcoin transactions made to your business, just as you would with any other form of payment. You can do this using your Bitcoin wallet, which will provide a detailed record of all transactions.

By following these steps, you can start accepting Bitcoin for your business and take advantage of the benefits that come with accepting this innovative digital currency.

Should You Accept Bitcoin on Your Business?

Accepting bitcoin or any other cryptocurrency for the purpose of payments into your business might sound cool but wait there are lots of things which should be in consideration before implementing the payment method.

Recognize the rules governing cryptocurrencies

The laws of accepting cryptocurrency as a payment option for your business will vary as long as cryptocurrency is a hotly contested topic. The fundamentals are as follows, though:

State regulations for investment in cryptocurrencies: You must have your own cryptocurrency account in order to accept cryptocurrency payments, which automatically qualifies you as an investor. This indicates that you are required to abide by your state's cryptocurrency laws.

Review your cryptocurrency platform's policy: Check the website of your service provider to see which nations are supported and to evaluate the user agreements. Despite the fact that users can exchange (or withdraw) their funds in US dollars, not all cryptocurrency platforms are permitted in the country. For instance, the use of CoinGate is restricted to certain states.

Selecting the right cryptocurrency for Payments

Thousands of cryptocurrencies exist, however, the majority of crypto payment systems only support a small number of them. The most widely used, Bitcoin, is largely accepted everywhere. However, you might need to look further if you're interested in accepting Mooncoin or Alice, for instance.

Accounting and Tax Issues

If you're considering accepting cryptocurrency, it's a good idea to consult with your accountant or bookkeeper.

First and foremost, you need to be aware of the tax repercussions, especially if you intend to keep any cryptocurrency you get.

Second, consider the route information takes to reach your accountant from your point-of-sale system. For instance, you'll want to know if your crypto payments platform interfaces with any cloud-based systems you use, such as QuickBooks or Xero.

Any cryptocurrency that your clients use to make payments to you is subject to capital gains taxes. Although you are not a part of this process, you should be aware that it might be taken into account when determining how to pay.

Accepting Bitcoin and Other Cryptos as Payment: Pros and Cons

Reduce credit card processing fees: Credit card processing fees, which typically range between 3% and 4%, are a significant expense for businesses. For every $10,000 a business owner earns, $300 is spent on fees. It stands to reason that owners should be incentivized to develop ways to reduce these costs. Bitcoin transactions are not subject to a processing fee (but cryptocurrency payment gateway merchants may levy a 1% fee).

Deal with new and foreign clients: Offering bitcoin as a payment method will bring in new customers. It will also make it easier to conduct business with overseas customers without incurring high international expenses. The more payment alternatives you provide, the simpler it is for clients to pay you.

No threat of chargebacks or disagreements: Bitcoin functions similarly to cash in that all payments are final. This implies that as a merchant, you won't have to pay high chargeback fees (about $25 per chargeback) or deal with payment disputes.

 

Charges for Accepting Bitcoin Payment

Accepting cryptocurrency payments is far less expensive than accepting credit cards. The normal payment processing transaction charge for cryptocurrency payments is under 1%, which is significantly lower than the average credit card processing fee (3%) and even some ACH direct deposit rates (1%-1.5%).

Some companies charge even lower transaction costs (CoinPayments charges only 0.5%), while others charge a network fee in addition to the 1%. Currency conversion and withdrawal fees are examples of potential additional expenses.

PayPal, for example, charges a transaction fee when you purchase and sell cryptocurrencies on its platform. The cost is typically 0.5% of the total transaction amount, however it changes depending on market conditions.

Accepting Crypto Vs Credit Card

Credit cards and cryptocurrency are fundamentally different. They do, however, share crucial business-related characteristics. They both, in particular, allow clients to pay electronically, which is handy for in-person transactions and required for online purchases.

 

Bitcoin And Crypto Payment Service Providers

There are numerous Bitcoin payment processors and various manual methods for accepting Bitcoin on your website. While I encourage you to investigate these firms further and pick the approach that best suits your business, these are some of the simplest ways to begin accepting cryptocurrency payments for your company.

1. Coinbase

Coinbase, one of the most famous crypto payment processors, is a preferred way for Bitcoin business transactions. Download the Coinbase app for merchants and begin accepting fast cryptocurrency payments. Coinbase is one of the payment gateways that provide great protection against price fluctuation due to its quick crypto-to-fiat payment conversion. Coinbase is highly compatible with nearly all common eCommerce CMS platforms. Italy, Spain, the Netherlands, and other high-value European markets are among the countries that utilize Coinbase the most. Its fees begin at 0.5% plus a fixed fee.

2. Coingate

Coingate is another strong contender for the title of best cryptocurrency payment gateway in 2021. The crypto payment gateway enables retailers to take payments in traditional currencies such as USD, Euro, and others as well as Bitcoin and altcoins. It also offers eCommerce platform plugins. Coingate merchants can now accept cryptocurrencies other than Bitcoin thanks to the connection with Shapeshift. For several transactions, Coingate charges only a 1% transaction fee. Belgium, Brazil, and Japan have diverse economies and are among the top countries that use Coingate the most.

3. NowPayments

NOWPayments is a well-known name in the crypto payments industry. It is well-known for providing non-custodial, low-fee, and simple-to-implement gateway solutions. The gateway enables businesses to accept 100+ cryptocurrencies by providing a simple API and ready-to-use crypto plugins. NOWPayments, which was founded in 2019, also provides fiat conversion, a PoS solution, and a mass payments feature. Many popular eCommerce CMS platforms, including WooCommerce and OpenCart, are compatible with the NOWPayments gateway. The maximum cost is 1% (0.5% for each transaction and 0.5% for each auto exchange if necessary).

4. PayPal

Paypal makes it simple for customers to purchase with cryptocurrency. PayPal will automatically convert cryptocurrency to USD for merchants. This option is designed to provide customers with other payment alternatives while still allowing the merchant to deal solely with fiat currency.

How to Accept Crypto Payments on Website

Accepting crypto payments on a website involves several steps, including selecting a payment gateway, setting up a wallet, integrating the payment gateway with your website, and ensuring the security of the transaction. Here is a general guide to accepting crypto payments on a website:

Choose a payment gateway

There are several payment gateways available for accepting cryptocurrency payments. Some of the popular options include Coinbase Commerce, BitPay, and CoinPayments. Each gateway has its own set of features, fees, and supported cryptocurrencies. You should research and compare different options to find the one that best suits your needs.

Set up a wallet

You will need a cryptocurrency wallet to receive and store the payments. You can choose from different types of wallets, including online, desktop, mobile, and hardware wallets. Some payment gateways offer their own wallets, while others allow you to use any compatible wallet.

Integrate the payment gateway

Once you have chosen a payment gateway and set up a wallet, you will need to integrate the payment gateway with your website. This typically involves copying and pasting a code snippet or using a plugin for your website platform.

Test the payment gateway

Before going live, you should test the payment gateway to ensure that it works properly. You can do this by making a small payment and verifying that it appears in your wallet.

Ensure security

Cryptocurrency transactions are irreversible, so it's important to take steps to ensure the security of the transaction. This includes using a secure payment gateway, keeping your wallet secure, and educating yourself and your customers about the risks and best practices of cryptocurrency transactions.

How do I accept Bitcoin at my restaurant?

To accept Bitcoin at your restaurant, you can follow these steps:

• Sign up for a Bitcoin wallet: Choose a reputable Bitcoin wallet provider and create an account. This will allow you to receive and store Bitcoin payments.

• Set up a payment processor: There are several payment processors that allow businesses to accept Bitcoin payments, such as BitPay, Coinbase, and CoinPayments.net. Choose one that suits your needs and integrate it into your payment system.

• Display your Bitcoin payment option: Add a sign or display at your restaurant to let customers know that you accept Bitcoin payments.

• Train your staff: Make sure your staff understands how to process Bitcoin payments and can assist customers who wish to pay with Bitcoin.

• Track your Bitcoin payments: Keep track of all Bitcoin payments received and ensure they are properly recorded in your accounting system.

• Convert Bitcoin to local currency: You can choose to convert your Bitcoin payments to your local currency using a payment processor or exchange platform.

It's important to note that accepting Bitcoin payments comes with risks, such as price volatility and potential fraud. Be sure to do your research and understand the risks before deciding to accept Bitcoin at your restaurant.

Conclusion

Accepting bitcoin and other cryptocurrencies as a business owner is a simple addition that will enhance the variety of payment methods accessible to your consumers while also potentially lowering your overall transaction expenses. Accepting bitcoin can be simple to set up once you understand the crypto legislation in your area and have an accounting plan in place to manage these payments. Discover the top payment gateways for small businesses.

Bitcoin Payment FAQs

How do I accept Bitcoin payments manually?

The manual Bitcoin payment method is actually quite straightforward, as it is begun by the consumer making a payment from their crypto wallet. They only require the recipient's crypto payment address. Alternatively, businesses can develop a QR code that customers can scan and pay with.

Is it legal to accept Bitcoin payments?

Anyone from anywhere in the world can buy goods and services from businesses that take cryptocurrencies as payment because they are not regulated by any government or agency.

Do any banks accept Bitcoin?

Ally Bank is one of the most Bitcoin-friendly banking firms. Ally is an online-only bank, which means it has no physical locations.

Can a small business accept Bitcoin?

Certainly. Businesses of any size can accept cryptocurrencies without any limitations. By accepting cryptocurrencies such as bitcoin as a business owner, you can enhance your competitiveness, attract more customers and reduce payment processing fees.