What exactly is cryptocurrency?
Bitcoin and other virtual currencies work in the same way that cash does. Cryptocurrency purchases are completely anonymous. To buy bitcoins online, however, the bitcoin exchange must know who the buyers are, and identification is required to obtain the coins.
Cryptocurrency coins are simply computer files that are kept in digital wallets on computers or mobile devices. People can send each other coins. Alternatively, the coins can be used to make purchases at merchants who accept cryptocurrency.
Each crypto merchant’s payments are recorded in the blockchain, a public list. As a result, virtual currency is uncopyable. Transactions cannot be reversed.
There are over 1600 virtual currencies in existence worldwide, but only about 20 are widely accepted by consumers. And new cryptocurrency coins are constantly being created.
Why is cryptocurrency considered a high-risk business?
For the following reasons, a cryptocurrency merchant account is considered a high-risk merchant account:
Approval is given automatically-
Payments made with cryptocurrency are anonymous and irreversible. There are no chargebacks, and no credit card statements are available. Customers will not be able to request a refund as a result of this.
There are no laws or rules in place-
There are no laws that govern the cryptocurrency industry. As a result, the majority of European banks are unwilling to open a cryptocurrency merchant account. They compare it to trading, which they believe is too dangerous.
Instability-
Once again, there are no laws that govern the cryptocurrency industry. It is completely reliant on people’s faith in it. When bitcoin collapses, all other cryptocurrencies will fall with it. As a result, crypto is insecure and unstable.
Usage that is not legal-
Crypto is deemed high risk even with a license due to the large number of people who use it for money laundering, buying/selling drugs, and so on.
Things to expect from your bitcoin payment processing provider for your crypto business:
- The process will be long while you get underwritten for your project; please expect the process for a merchant account for your Crypto business to take 6-8 weeks.
- You will need to know your onions and have all of your documentation for acquirers to approve you for a merchant account for cryptocurrency business.
- Expect a rolling reserve to be placed on your cryptocurrency merchant account, which means the acquirer will hold a percentage of your funds for 180 days to protect them from chargebacks.
- Acquirers charge a $500 high-risk fee to register you with Mastercard. The merchant will be responsible for this.
- Before you begin the process, you must ensure that your website is compatible with the acquirer’s gateway. This is critical information that you must have before beginning the process.
- Settlements from your merchant account for your cryptocurrency business will most likely be made once a week with a seven-day delay. This can be negotiated after a successful trading period.
- If you are a startup looking for a payment solution for your cryptocurrency business, things will be a little more difficult; the acquirer will require more information such as:
- Cash flow projections in the business plan
- Proof of start-up funds for all licensing
- All stakeholders’ curriculum vitae
- To be accepted for a merchant account, you must have a business bank account in the name of your cryptocurrency business.
What paperwork is required to get a crypto payment processor?
Here is a list of documents that should be collected before beginning to sell cryptocurrency:
- Incorporation Certificate;
- History of payment processing;
- Local documents about the company’s jurisdiction that list the directors and owners;
- Utility bill/bank statement/rental agreement with corporate names demonstrating company location;
- Copies of valid identification are required for all company directors and owners.
What are the benefits of cryptocurrency payments?
Even without a payment gateway or crypto card, paying someone in cryptocurrency has advantages. When used in conjunction with a payment system, the experience combines the best of both worlds:
- Bitcoin (BTC) and other cryptocurrencies are legal in nearly every country. When making international payments, you can avoid converting into the local currency.
- Depending on the cryptocurrency payment provider, your transactions may be completed almost instantly. This is common when you both use the same service. Even if your transaction isn’t instant, it’s often faster than a bank account transfer and less expensive due to lower transaction fees.
- A customer support team will be available to assist you with any technical issues. This isn’t usually the case when using a crypto wallet to transfer funds manually.
- Many newcomers find that using a cryptocurrency payment gateway is easier than setting up and managing their wallets.
How to get a Cryptocurrency Merchant Account?
Follow the checklist below and you will be able to get a crypto payment gateway for your crypto business.
Secure websites are used by cryptocurrency exchanges to sell their wares. Naturally, ensure that all of your site’s pages load quickly and display properly. Privacy, refund, and other pertinent policies must be visible.
Make it simple to find customer service email addresses and phone numbers. Underwriters frequently “cold call” or email customer service to assess the quality of your service. If calls are routed to voice mail, leave a message identifying your company’s name and when customers can expect a callback. When using email autoresponders, make sure to confirm receipt of the email and notify the writer when a response will be sent. Then, as promised, respond.
To sign in, cryptocurrency websites require usernames and passwords. Include a demo or test login so that the underwriting team can see what customers see.
Processing statements are examined to confirm processing volumes and calculate chargeback ratios. If chargeback ratios are increasing, include a brief explanation of why and what is being done to reduce chargeback ratios.
Bank statements are scrutinized to ensure that there is sufficient money in the bank to run the business. Business documents are examined. And the remaining supporting documents are scrutinized.
Your merchant identification number (MID) is assigned once the account is approved. You will be securely emailed your login credentials for the credit card to the bitcoin payment gateway. And you can start accepting payments right away.
Why Choose Amald for crypto merchant services?
We specialize and work with a few acquirers who will underwrite your Crypto business for a merchant account, allowing you to accept Visa and Mastercard payments.
Offering the quickest, easiest, and most transparent way to set up crypto payment integration.
- Even in high-risk industries, approvals are granted within 24-72 hours.
- Customer service that is second to none, including direct access to the management team
- There are no application, setup, or annual fees.
- Optimize approval ratios according to your target customer base.
- Grow Your Business on a global scale while staying compliant
We can assist you if you are an established Crypto business that has been served with termination by your payments processor or if you are simply looking for a better rate! You will require the following documentation:
- Proof of identification is required for all directors and 25% of shareholders.
- Proof of trading location
- Directors must provide proof of their residential address.
- 6 months of transaction history
- Website domain and logins for a business bank account
- All licenses are required.
Amald has a successful track record of assisting cryptocurrency businesses in obtaining merchant accounts.
FAQs
What are Cryptocurrency Payments?
Cryptocurrency is a decentralized digital currency that is built, secured, and encrypted using blockchain technology. In contrast to traditional physical currencies such as the US dollar, cryptocurrency is not governed by any government or other entity. It is only available online.
Although cryptocurrency owners can exchange it for goods and services, it is often treated as an investment, something to be bought and held for capital gains when its value is high.
Because crypto payments are decentralized and unregulated, they are transferred from one digital wallet to another as peer-to-peer (P2P) payments. Traditional debit and credit card payments, on the other hand, are processed by your customer’s bank, the card networks, and your bank.
How to accept crypto payments on the Website?
A crypto wallet is required if you want to collect, store, and use cryptocurrency for your business or personal. A crypto payment gateway is required if you want to accept crypto payments but have them converted to traditional money. Many well-known solutions, such as Coinbase and BitPay, provide both wallet and gateway functionality.
Now that you’ve established your crypto wallet and/or gateway, it’s time to integrate cryptocurrency into your website and enable it as a payment option during the checkout process.
How can you pay with Cryptocurrency?
A crypto card is your best option if you want to use your cryptocurrency to pay for everyday purchases. Simply transfer the cryptocurrency you want to use on the card to your Funding Wallet to get started. When you pay with a credit card, the cryptocurrency is exchanged for the local currency you’re using and transferred to the vendor.
Which payment gateway is best for Cryptocurrency?
Cryptocurrency payment gateways convert digital currencies to currency instantly. But which is the most effective?
Hundreds of cryptocurrency payment gateways have emerged to keep up with the rapidly evolving cryptocurrency industry. When it comes to selecting a payment gateway for your company, it is best to go with a platform that is both secure and beneficial.
Check out this list of popular cryptocurrency payment gateways.
- Coingate
- Coinbase
- BitPay
- AlfaCoins
- GoURL
- Shopify Gateway
