IPAYTOTAL is a bitcoin payment processor and is one of the biggest players in merchant services. Ipaytotal has earned this place in the industry as we provide best Internet merchant account services at extremely competitive rates. We help in establishing bitcoin merchant accounts or any merchant accounts through our connections with Acquiring Partners and it gives us the edge to offer Reliable Credit, Debit and Echeck Processing to almost every industry which is considered high risk.
Cryptocurrency payment processing is gaining huge popularity among merchants around the world. In this blog, we will discuss accepting cryptocurrency payments from beginning to end.
Bitcoin, one of the most attractive cryptocurrency, has been designated by some as the most protected currency of the Internet. Using proper care, anyone can make or accept currency to everyone without disclosing any delicate information associated to their bitcoin accounts or wallets. Various different cryptocurrencies like Litecoin and Ripple, are also experiencing growth in their transactions. Driving high on the evergrowing acknowledgment of bitcoin and other virtual currencies, many enterprises have started to offer payment-associated services that make and accept payments in crypto.
All regards to these bitcoin payment services, now you could pay for a cup of coffee purchased nearby your corner coffee shop by flashing the shop’s QR code on your mobile phone, or shop a high-end laptop through well-established organizations like Dell by making payments in bitcoin. This article will explain that how bitcoin payment services function, their benefits, their add-on costs that users must be informed, and if these services are a menace to the established fiat currency based payment systems.
What is a Bitcoin Payment Service?
In conclusion, bitcoin payment services, bitcoin merchant services, empower merchants and businesses to accept payments in bitcoins from people for the goods and services actually sold or dispatched. It functions akin to the processing of a classic credit or debit card payment system, with other features of bitcoins. For instance, when you visit a Walmart outlet to make a purchase, swipe your Amex or Visa credit card at the counter, and punch in the PIN number to make the necessary payment. Similarly, you can make an online purchase at the Walmar\t website, and make the payment using the same credit card by entering the details on the payment page of the website.
Under both of the cases, whether the in-store swipe machine or the online web portal, behind the scenes, operate a payment service network that makes it enable to authenticate and the process of your credit card for making the payment. The payment service takes care of protected recording and broadcasting important details of the payment, validating the accreditation, enabling the transmission of the amount from your account to Walmart’s, and circulating a confirmation to all the involved stakeholders. Bitcoin payment services also function in the associated manner. They act as a mediating layer between the payer and receiver for bitcoin payments processing, which also includes documenting the transaction on the blockchain. They permit merchants to receive payments in bitcoins both online and through tangible locations without the buyer or the seller concerned regarding the complex background process of bitcoin payments that gets accomplished in the backdrop.
How Does Bitcoin Payment Service Work?
All prominent bitcoin payment services offer multiple mediums for merchants to receive bitcoin payments. They involve solutions for varied platforms, like assimilation with e-commerce platforms like Shopify, PrestaShop, and Magento; for payment from in-store point-of-sale (POS) systems, like Soft Touch and DC POS; and for direct payments from within the billing and accounting solutions, like Host Bill and Invoice Ninja.
One could also treasure solutions for receiving donations in bitcoins through aforesaid services, which contains venturing with donor services like NationBuilder and Targeted Victory. App developers can also find real-time available functions and code libraries in Android SDK and iOS SDK and in programming languages such as PHP, Java, and Perl which empowers them to receive bitcoin payments through their apps and portals.
Necessarily, everyone who signs up for bitcoin merchant services can begin accepting bitcoin payments from the customers through any and all types of transaction platforms across the globe. A bright kid in an African nation could develop a great Android app and accept bitcoin payments from global users utilizing the bitcoin payment associated with Android SDK; or an important restaurant in Venice, Italy can use the bitcoin payment enabled Soft Touch POS to accept bitcoin payments from its leaders.
In relation to steps, the following system gets implemented. Your customer decides to make payment in bitcoins at the departure (in-store, on web, or in-app), he pays the money at the closed -in exchange rate applicable at the time of transaction, the bitcoin payment service immediately converts the accepted bitcoins into the currency of your desire preventing the volatility risk, the money gets supplemented to your account, and lastly it gets credited to your appointed bank account at the determined frequency once the accumulated account passes the floor limit. You can even choose to get the bitcoins in your own wallet, besides of exchanging them for fiat currencies.
The service also assigns the important details in a protected manner to the blockchain network for the transaction to be attested and documented on the public ledger. Miners, who authenticate and add the transactions to the blockchain, receive a bitcoin miner fee. This fee is not reported to the payment service but is awarded to reward the miners for their efforts performed for attesting and authentication. According to BitPay’s miner fee details, “Most actual bitcoin wallets comprise bitcoin miner fee in all outgoing transactions,” and it could be “extremely high due to high bitcoin network requirement and finite bitcoin network space.”
Advantages of Bitcoin Payment Services
In comparison to a basic credit card payment, bitcoin payments purport to be approximately economical due to lower transaction costs. A payment service, similar to BitPay, levies a flat 1% settlement fee to the merchant, as compared to 2% to 3% charged by the fiat currency credit cards processing operators.
Bitcoin payment services grant a border-less payment structure, which empowers smoother transfer of bitcoins in any amount from anywhere across the world, from any mobile or computer, to be added the merchant’s account in various countries in a currency of merchant’s desire. Bitcoin payment services assert to maintain clarity in the highly aggressive exchange rates between the bitcoin and the fiat currency.
Using these services, a merchant not only just receives varied platforms to receive global payments, but he also receives a respectable and verified identity in the digital world of cryptocurrencies, which is much secured, transparent and loyal for getting payments. Imagine being questioned to do a direct payment to person’s bitcoin wallet, in contrast to seeing the payment being handled through the structure of a settled payment service provider – a consumer would find the recent more accurate to get ahead. That is a value-creation to a business that receives from such services.
A threat to Existing Card Processing Services?
Bitcoin and various other cryptocurrencies have newly arrived in the eyes of regulatory authorities and monetary authorities across the world. Although many nations, for instance, Japan and the U.S., have granted transactions and allowed cryptocurrency exchanges to engage, China has tightened the rules on their use. But, the comprehensive ever-growing acceptance of bitcoins is suggestive of more and more users across the world inclined to transact in them. The survival and continually growing influence of a parallel, border-less economy which is way beyond the control of any central power is also taking the business of the classic card and merchant payment service providers at risk. Since the ages where everything was being handled in fiat currencies to now, where a growing portion is changing to cryptocurrency dealings, the related services associated with fiat currencies are obligated to feel the heat.
The Bottom Line
Technological improvement and growth of new offerings will keep on progressing to arrive. A win-win situation can be accomplished by classic payment services that accept bitcoin technology and offer like services using their primitive, well-settled brand names.
Each and every merchant account provided by IPAYTOTAL blends a payment gateway provided by the approving bank. IPAYTOTAL’s reliable banking partners offer a protected payment gateway for all types of transactions, with which you shall connect with the bank’s API to your website post-approval.