While accepting crypto payments comes with many advantages, it also comes with some risk. Here are a few of the main benefits of accepting cryptocurrency payments:
Boosting conversion rates
Accepting payments made using crypto is a fantastic method to increase your customer base and reduce payment processing costs. These payment methods are quick and flexible, however you will have to modify your customer service policies in order to accept these payments. These new payment methods can help your business save hundreds of dollars in chargebacks, as well as new customer service policies, and bureaucratic appeals processes. To make the most of cryptocurrency payments Here are some tips to boost conversion rates
Your conversion rates will rise as cryptocurrency adoption increases. Although it's still a futuristic trend certain businesses are taking the plunge. Offering an option that accepts crypto payments is a great option to increase conversion rates and stay ahead of the competition. Although cryptocurrencies are new and challenging to accept, they are rapidly becoming a popular form of payment. Being early adopters will reap the benefits of accepting cryptocurrency.
Security
More and
accept cryptocurrency payments more merchants are accepting crypto payments, which would be a small technological shift but could have significant implications. Illicit actors are always looking for ways to exploit regulatory loopholes as well as technological advancements in the financial sector. These scenarios can be prepared for by U.S. law enforcement and national security personnel. The best way to eliminate these loopholes is to be proactive and anticipate new threats before they arise.
In comparison to traditional credit card methods, cryptocurrency is considered to be safer. It does not depend on a third-party verification system. Customers store their information in crypto wallets. The blockchain general ledger also keeps track of each transaction. Since this ledger is decentralized which makes it more difficult to steal a customer's identity with cryptocurrency. Customers can transact with businesses with cryptocurrency more easily.
A third-party processor for payment can be employed to accept cryptocurrency from businesses. Many cryptocurrency processors offer multi-factor authentication, as well as cold stores. These features ensure that user's private keys and account information is safe from unauthorized third-party access. This means that a business can accept cryptocurrencies in a safe and reliable way. Businesses can also make use of these systems for managing payments.
If a customer does not have an account with a credit card or electronic-wallet, a money transmitter will help them verify their identity. A third-party money receiver confirms the transaction by comparing it to the private keys of the customer which is also known as a private key. It can take as long as 10 minutes for a transaction's processing time to reach. Businesses that use a third-party payments firm could have a faster verification time or a rate-locked system that reduces the volatility.
Processing fees
There are a variety of reasons why businesses should accept cryptocurrency payments. The standard transaction fee for cryptocurrencies is 1percent that is considerably lower than credit card processing charges and some ACH direct deposit fees. CoinPayments costs only 0.5 percent. Some processors charge the network fee in addition to the 1% transaction fee. Other fees that could be charged include charges for currency conversion or withdrawal fees. However, the majority of companies find that the processing costs for accepting cryptocurrency payments are less expensive than credit card processing.
Although there aren't any direct processing costs involved with accepting cryptocurrency payments but the cost of maintaining an electronic payment system can add up. Although the fees are minimal however, duplicates of the payment interfaces require technical expertise. As opposed to credit card transactions, the processing fees for crypto transactions are typically one percent or less. This is significantly less expensive than credit card transaction costs, which typically include an interchange fee of up to 3 percent per transaction and other charges set by the card issuer. Crypto payments have the benefit of not having to have to be concerned about identity verification as well as compliance or chargebacks.
While the processing costs for crypto payments might be less than traditional credit card transactions, it is important to weigh the advantages and disadvantages before you implement it into your business of processing payments. Although it isn't regulated, cryptocurrency can be used to lower processing costs while maintaining the same level of security. The cryptocurrency payment system is also completely secure and typically cheaper than interchange fees for credit cards or markups for payment processors.
Peer-to-peer transactions
Many online platforms are integrated with payment processors such as Bitcoin. Merchants can install payment buttons or develop custom integrations to
accept cryptocurrency payments. To facilitate these types transactions, Shopify has partnered up with Coinbase Commerce and BitPay. Visit its cryptocurrency page to learn more about how accepting cryptocurrency payments can benefit your company. You can also find the FAQ that explains the advantages of using crypto payment.
Processing charges for accepting crypto transactions through peer-to-peer networks are generally minimal, usually around 1 percent. This is much lower than the 4% fee that the majority of small businesses pay when accepting credit cards. However, small-sized businesses typically have to comply with minimum purchases for credit cards and pay higher charges compared to larger merchants. Crypto payments do not incur transaction fees compared to processing charges for credit cards that are usually up to 4% of the transaction value. Accepting crypto payments could also expose your business to international buyers. In one case, a small electronics retailer received over $300,000 worth orders from customers in forty different countries.
However, a centralized exchange may not be the best choice. Many businesses have been shifting away from exchanges that are centralized like Binance and Coinbase to go with P2P-based exchanges that are decentralized and completely P2P. PayPal is an example of a company that is a part of this. Its payment processing platform is based on B2Broker technology. Customers can also use crypto to fund their merchant accounts.
Are you considering adding crypto-based payment options to your e-commerce store? This is a great option to gain new customers and crypto payment processor increase revenue. Your customers can avail digital payment options without the need for credit or debit cards or bank withdrawals. Furthermore, since crypto transactions are encrypted and stored on a blockchain ledger indefinitely so there's no need to worry about security concerns.
Cyber-attacks
There are many kinds of cyber-attacks targeting cryptocurrency payments. Some are solely for amusement, while others are used as a defiance to. Cyber thieves can extort large sums of money from companies and government agencies. Cryptocurrencies are a coveted target for cyber criminals, and protection against crypto-related attacks must be a key part of any security plan. Here are some examples of the most common crypto-attacks
Ransomware schemes are one type of cyber attack that attackers are able to take over the victim's network and
accept cryptocurrency payments require payment in crypto. The attackers demand payment in bitcoins in exchange for a number which they then use to run an attack using ransomware. In 2020, for instance, $1 billion was transferred through dark-web cryptocurrency. The hackers also employed a new version of the exploit builder tool , also known as ThreadKit, to conduct phishing scams by pretending to be financial institutions, employees and digital wallets. They will personalize emails so that they can convince users to take action.
As of the beginning of May the ransomware attacks have raked in more than $81 million worth of bitcoins. As more ransomware-related attacks are discovered the number of victims will increase. Elliptic is a cybersecurity company, recently identified an account on Bitcoin belonging to DarkSide criminal organization. Ransomware-related payments have been received from a variety of victims by the DarkSide criminal organization. DarkSide criminals extorted 75 bitcoins worth more than $4 million in one attack.
The crypto wallets can be difficult to trace, but non-custodial wallets might help detect red flags through their profiles of customers. These customer profiles contain details about the normal volume of transactions as well as the value of each transaction, crypto payment gateways the type of tokens purchased, and the blockchains that customers interact with. The company is able to trace the transactions. These investigations can prove vital for the future of crypto payments. These attacks are becoming more common and the cyber-security community should intensify efforts to combat these threats.
