Cryptocurrency Processing

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For many businesses, cryptocurrency processing seems high-tech and difficult to understand. But accepting a crypto payment is just like accepting payment with any fiat currency. You receive an amount in your currency that equates to the current exchange rate. People assume it is technical because it is still relatively new. But it’s simply a digital version of cash. You can make a bitcoin payment without a credit card or a bank account, and it is one of the most secure ways you can transfer money. And your information can remain anonymous. 

The transaction happens without disclosing sensitive bank details. And it also incurs cheaper fees as you don’t need to use a credit card processor. Whether you are a low-risk or high-risk merchant, it makes sense to include crypto payment in your payment gateway. Your checkout should offer flexible payment options to your customers, and many customers abandon carts if their preferred payment method is not available. Credit cards are currently the most popular form of online payment. But as more people start to see the benefits of cryptocurrency payments, we can expect its popularity to grow. 

 By including cryptocurrency as a payment option, you can stand out as a modern business. Transactions are fast and secure, and you can accept payments from anywhere in the world. And it helps combat fraud, as a customer must have the money in their account to make a transaction. There is a lot to love about cryptocurrency processing.



One of the main benefits of cryptocurrency processing over fiat currencies is anonymity. A user has an online wallet instead of a bank account. Once the wallet is set up, they never need to disclose their personal details again. When they make a payment, it is on a one-to-one basis. Their money is going from their wallet to yours. Having a payment gateway that can accept a bitcoin payment, opens you up to a unique set of customers. 


Many people see cryptocurrency processing as the safest and most secure payment method. But to accept bitcoin in your payment gateway, you need a cryptocurrency merchant account. Or, if you already have a high-risk merchant account, you can ask your provider to include crypto payments for you. You will have to go through more steps than a normal high-risk merchant account, but the benefits are worth it. Every transaction is irreversible since there is no way to delete it from the blockchain. And you can accept payments from anywhere in the world. 

 So once your merchant account is in place, you can offer your services anywhere in the world. When a customer makes a payment, it uses the exact exchange rate at that exact time. The payment converts into the currency of your choice, thus eliminating the volatility risk. Once the transaction is complete, the money usually enters your account within an hour. This makes bitcoin purchases preferable as the merchant receives the money quickly.


Why is Cryptocurrency Defined as High-Risk?

In reality, accepting a bitcoin payment is much safer than accepting a fiat currency. The transactions are secure and monitored by everyone who is using the technology. Everyone’s ledger reflects the transaction so there is no chance of chargebacks. And the system does not work on credit, so the funds must exist in the payer’s account. So why is cryptocurrency defined as high risk? 


Part of the answer is that it is still relatively new, and that scares many people. In fact, it is easier to apply for a CBD merchant account or adult merchant account than a cryptocurrency merchant account. Several factors make digital currency appear scary. The first is lack of knowledge. Many businesses have a lack of understanding about crypto payments, and they fear the unknown. It’s easier to ignore the payment method rather than to take the time to understand and embrace it. 


The next issue is volatility. At one stage, Bitcoin jumped from $29,000 to $40,000 over seven days. These incredible swings make many people wary of crypto. And since it is a digital currency, money laundering is a big concern. And cryptocurrency exchanges are often an easy way to launder money. Most cryptocurrencies purchases are card-not-present transactions. Unfortunately, this is not the preferred payment method by credit card processors. So they place cryptocurrency in a high-risk category. It creates extra risk for merchant account providers.

Benefits of cryptocurrency

There are many benefits for a merchant who accepts a bitcoin payment over fiat currencies. Cryptocurrency creates a secure payment method that is safe and fast. One of the biggest problems a high-risk company faces is chargebacks. This does not exist with crypto payments. You cannot reverse a transaction once it has been authorized. And the strong encryption techniques mean fraud and tampering are not possible. 


Transactions are on a one-to-one basis, so there is no middleman. That means there are no misunderstandings, and you know what you are paying for. But you don’t have to disclose any bank details. So this affords you extra security and protects you against identity theft. And by cutting out the credit card processors, you save on fees. You do pay a small percentage to the data miners, but this is much less than the fees you pay to traditional processors.

Costs Associated With Your Cryptocurrency Merchant Accounts

High-risk merchant accounts cost more than regular merchant accounts. Banks are assuming a higher risk and they charge more for this service. And cryptocurrency processing is no different. Cryptocurrency processing providers often charge higher fees than they do for other high-risk accounts. Many businesses are against accepting digital currencies over accepting a fiat currency. But this will change as more people are turning to cryptocurrency processing every day. But for now, cryptocurrency processing providers are charging more for their services.

Your personal fees will depend on your particular business, just like with any merchant account. And every merchant account is unique. You can expect to pay a merchant discount rate and a per-transaction fee. How much this is will depend on your provider. On top of this, you will most likely have to pay monthly fees. Check if this includes a payment gateway or not, as often these fees are extra. 


As a high-risk cryptocurrency merchant, you have a higher risk of money laundering. So it is likely the bank will set a rolling reserve. This means they will hold back a percentage of each payment and not pay it directly to your account. This is a safety net in case of problems further down the line. And then you will have a chargeback fee and refund fee. Make sure to read your contract carefully and understand all the costs. And as with most merchant accounts, you can usually negotiate the rates.

Documents Needed to Open a Cryptocurrency Merchant Account

The steps to apply for a cryptocurrency merchant account are similar to any high-risk merchant account application. The one major difference is you must provide anti-money laundering controls.

Final Thoughts

While cryptocurrency processing has been around for a few years already, it is still relatively new. But it is a very popular form of payment. By including it in your payment gateway, you open yourself up to a much larger audience. You can accept payments from anywhere in the world. And these payments are secure and fast and can be in your account within an hour. There are many benefits to cryptocurrency, and they far outweigh the disadvantages. The only reason it is not more popular is the fact that many people do not understand it. But that is likely to change in the very near future.


There are a few extra steps you must take compared to opening other high-risk accounts. So it normally takes 3-5 working days to get approval for your crypto merchant account.

A customer has a wallet containing their cryptocurrency. They pay directly from their account to yours. The transaction is publicly visible and recorded.


Since you are bypassing credit card processors, you do not have to pay their fees. You pay a much smaller fee to data miners.

The biggest disadvantage of cryptocurrency is volatility. Bitcoin can rise and fall without warning. So a payment made today can be worth a very different amount tomorrow.

A bitcoin merchant account allows a business to receive payments in digital currency as opposed to fiat currencies. Their customers can purchase goods and services using their preferred cryptocurrency.