As cryptocurrencies gain popularity, more and more companies are exploring ways to use them to further their operations. Bitcoin is, without a doubt, the first cryptocurrency that comes to mind when the transition and/or inclusion of cryptocurrency are under consideration.
The appeal of accepting cryptocurrency may be powerful for high-risk merchants who conventional payment processors have turned down.
Why accept Bitcoin payments
Various factors could lead a business owner to accept bitcoin payments.
- Save money on credit card processing fees: A business’s average credit card processing cost is between 3% and 4%. Owners should be encouraged to look for ways to reduce these expenses. There is no processing fee for Bitcoin transactions. However, crypto payment gateway providers do levy a 1% fee.
- Manage new and international clients: By accepting bitcoin as a form of payment , you can attract more clients to your company. Also, it will make it simple to conduct business with foreign clients without having to pay exorbitant international costs. The easier you make it for clients to pay you, the more payment choices you should provide.
- No risk of chargebacks or challenges: Bitcoin functions similarly to cash in that every transaction is final. As a result, you won’t have to worry about dealing with payment disputes or paying hefty chargeback fees as a merchant.
How to integrate Bitcoin payments into your business
When setting up your business to accept bitcoin payments, the specific steps will differ slightly based on the web platforms you’re using. The fundamental processes are as follows:
Understand Bitcoin geography
Consult an accountant to learn the tax repercussions of accepting bitcoin or other cryptocurrencies in your area, as local laws differ by state and nation. Regulations will alter how you intend to record bitcoin transactions in your accounting systems.
Create a crypto wallet or gateway
The next step is to configure a crypto wallet or gateway. A wallet will store your bitcoin, while a payment gateway will simplify converting cryptocurrency to US dollars. Gateways are a more straightforward solution that provide more freedom because you can convert or keep your bitcoin. The drawback is that while a wallet does not charge any fees to execute transactions, a cryptocurrency payment gateway will charge transaction fees (often around 1%).
Make bitcoin payments available on your checkout process
Downloading a plug-in or software on your e-commerce platform may be all it takes to set up bitcoin payments in your online store. If you can’t access this choice, you can incorporate HTML code payments instead (BitPay and Coinbase are the best options).
Incorporate bitcoin payments with your accounting software
Your bitcoin payments should be documented in the same system you use to track your other business transactions. You can build this up quickly by incorporating bitcoin transactions into your existing accounting system.
Prepare for crypto volatility
Bitcoin’s price fluctuates frequently and has a history of being unpredictable. If you want to take bitcoin as payment for goods or services, you need either be prepared for significant price swings or have a system in place to convert bitcoin payments into cash rapidly. With this, you won’t have to worry about losing money if the price declines.
If you’re a business owner, accepting bitcoin and other crypto payments could help you stay competitive, attract new consumers, and reduce your overall payment processing costs.
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