- January 15, 2020
- Posted by: admin
- Category: Bitcoin Merchant Account
Bitcoin merchant account, are you one of those people who are highly interested in having a bitcoin merchant account? If you are, well, you are on the right page. I have been very much curious like you are with Bitcoin and its merchant account so I came up with this article that will let you understand and the newbies out there everything they need to know about merchant account for Bitcoin and why it’s being considered as high risk.
Let us first define what Bitcoin is.
So, Bitcoin is a new currency created last 2009 by a person or establishment using an alias Satoshi Nakamoto. As Bitcoin started to make a noise in the online world, Satoshi’s identity since then stayed a secret.
Satoshi is brilliant, although he can come up with a payment system like everybody else; Satoshi saw the existing problems with the current payment systems and wanted to address these problems. When Satoshi came up with the idea of Bitcoin, one of its major roles is decentralization.
To be explained, Decentralization simply means everyone is part of the ecosystem contributing in it in their own ways. Unlike the physical currencies, Bitcoin does not rely on government, bank or a middleman as Bitcoin belongs to everyone in a system so-called “peer to peer”.
With no banks, government or middleman to connect with, Bitcoin is widely used by many in booking hotels, shop for furniture and buy different stuff online. In addition to that, international payment transactions are easier and way cheaper because Bitcoin is not tied to any country or is subjected to any regulation.
This is great news for a merchant like you and for those who are planning to open their own business. Anyone in the world can now setup their own business and accept Bitcoin payments within minutes. In addition to that, existing business owners is now able to offer Bitcoin as another option for payment and it has no credit card fees perfect for small businesses.
Ways of Buying Bitcoin
As you open a bitcoin merchant account, you should probably know that they are several ways on how you can buy Bitcoin such as:
- Purchase on Exchange
Bitcoin exchanges are marketplaces that allow people to buy and sell Bitcoin using almost all kinds of currencies.
This is one of the most common ways of buying Bitcoin. Similar to sending cash digitally, people are now able to send Bitcoin to each other by just using mobile apps or their personal computers.
- Bitcoin Mining
In mining or simply mine, people are using computers in order to solve complex math puzzles. This is how Bitcoin currencies are created. Presently, a winner is rewarded with 12.5 Bitcoins every 10-12 minutes.
The Bitcoin Wallet
When you already have a Bitcoin merchant account, do not be surprise if you can’t hold Bitcoin currency physically as Bitcoin currencies will be stored in a digital wallet commonly known as Bitcoin wallet. Unlike the one that you have in your bag, Bitcoin wallet is a kind of virtual bank account that allows users to receive and send Bitcoin or pay for stuff or save money.
Bitcoin as a Merchant Account
Bitcoin commonly used for buying goods and paying services everyone would want to have a Bitcoin Merchant Account. According to research, it is estimated that more than 80,000 and more businesses are now accepting Bitcoin in the US alone. The other goods news is that Bitcoin Merchant Services entitled holders with less transaction fees that are charged by major credit card companies.
Bitcoin being considered as High Risk Gateway
Having a Bitcoin Merchant Account is very essential in increasing your business sales processes. What you need to do is to incorporate Bitcoin in your business so that your consumers can find your payment methods to be very convenient and for you to receive payments a lot easier online. But, before you get too excited on using Bitcoin you should know that it is considered as a high risk merchant gateway.
You should prepare yourself because finding a processor to open a merchant account for Bitcoin will be really difficult. Private processors and well known banks will definitely decline the application. As Bitcoin merchant account falls to high risk category, the bank will no longer take additional risk.
They are numerous reasons on why Bitcoin merchant account or other businesses is being considered as high risk in the financial industry. But, of course acquiring banks and payment providers has their own views on what they consider as high risk. Provided here is a standard guidelines use in assessing on how risky is a business to both bank and provider.
- A poor history of chargebacks: this take place when an issuing bank return funds to the cardholder based on complaints.
- Frequent Returns: If a business often gives out refunds, payment providers will assume that the merchant is doing something wrong placing the business on high risk category.
- General Reputation in the Industry: If the business is known in the industry for having a high ratio of dissatisfaction, targeted by fraudsters and has numerous fraudulent transactions.
- Delivery Time Frame: If the business is delivering products and services to the consumers at a very lengthy time, something is assumed to be wrong making the business a high risk.
- Business Credit Score: If the business has too low credit score it will be given a high risk status for the reason that it will be harder for the business to repay.
- Automated Billing: If the business is using automated billing, there is a huge potential that the consumers will refuse the charge forgetting that they signed up for the business.
- High Transaction Volume: If the business is processing lots of transactions in a small period of time, the financial risk is greater and thieves will greatly attempt to take details to hack the system.
These are only few reasons that explain why a business is considered as a high risk, it is important that you are able to find a provider that is willing to work with you and your business. iPayTotal is a leading provider when it comes to merchant account for Bitcoin and high risk merchant credit card processing. iPayTotal’s team of experts will work closely with you in order to find the best possible solution for your business needs. Contact iPayTotal.com today and we will happily assess your business and will also help you to secure a long term bitcoin merchant account.
Learning the Value of Bitcoin
It is not a secret that Bitcoin is a high risk investment but still it’s all worth it. Just keep this in mind, when you have your private key, nobody is able to access your money and Bitcoin is the only un-confiscatable asset you can have in this world.
The people of Cyprus learned the value of Bitcoin and the best merchant account for Bitcoin last 2013 when all their savings ranging above 100,000 were confiscated.
The people in UK learned about the value of Bitcoin high risk merchant account UK the moment the Brexit vote had happened and the British Pound dropped in value.
In India, its people figured out the value of Bitcoin in 2016 where in their government suddenly banned all 500 to 1000 Rupee which is 86% of the countries cash circulation. Believe it or not the whole countries are forced to take a queue at the banks for several days to exchange the old notes for new ones. The sad thing is not enough cash is printed during this event resulting to people dying in the process.
If you are still doubtful in owning Bitcoin and opening a merchant account for Bitcoin, let me just share this with you. 99% of the world’s population today does not own a Bitcoin yet. But, I think that will change because everyday something is unexpectedly happening in their country, that results too people looking into it. This is also the main reason on why Bitcoin’s price does not have a ceiling.
The number of people buying Bitcoin will increase and when you ask them why, most of them will say that they are a bit worried of the future and they no longer trusts banks anymore.
All in all, merchants should consider the high risk merchant account benefits before deciding to throw in the towel or lose their business. Working with a specialized high risk payment processor can help merchants like you to streamline the payments flow and position your business for long-term success.
Here’s a tip for you: Be sure that you read your contract vigorously because they are still numerous disreputable high risk payment providers around the world planning to abuse your business. Always check for hidden fees and the termination terms as well and keep in mind that several high risk merchant account providers wants a higher rolling reserve.
Secure your money and your future, get a Bitcoin merchant account today! What are you waiting for? Contact iPayTotal today and open your Bitcoin merchant account, do not worry if it’s categorized as high risk because you will be working with a specialized high risk merchant account provider.