How Does Cryptocurrency Payment Processing Work?

How Does Cryptocurrency Payment Processing Work

If your company still works with fiat money only, it is highly likely that you are missing out on a lot of clients. There are over 420 million crypto users worldwide, and they want to use their digital assets to pay for goods and services without extra steps. Some big and modern businesses already understand this and accept cryptocurrencies as a payment for their goods and services. Let’s discuss why your business should Whitepay: accepting crypto payments and which crypto POS system to choose. 

What Is Cryptocurrency Payment Processing?

Whenever a transaction is made, it needs to be processed to be completed. This is basically the crypto processing. 

Just like with fiat currencies, there are a few ways to accept cryptocurrency payments. The most popular ones are via a crypto POS terminal or an online payment page. They work similarly to your usual fiat payments. However, it is possible, thanks to cryptocurrency payment processing service providers that create these terminals and pages and make sure everything works properly. 

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There are a lot of providers of such services at the moment, which is why you need to be cautious when choosing who to work with. Some of them can promise too much and do little, and some are simply not safe enough. So make sure that the provider you picked offers plenty of safety measures, has a good reputation, and has a responsible and quick support team. Do your own research, and you will find exactly what you are looking for. Whitepay is a great example of such a service provider. Here’s why this crypto payment gateway is good:

Whitepay is a SaaS company that offers crypto solutions. They provide comprehensive transaction history, simple deposit and withdrawal of funds, a support team, customizable fees, and receipt settings. Whitepay works with businesses and charities from around the world. With their help, your clients will be able to pay for goods and services in more than 140 cryptocurrencies. Whitepay is also a great option for accepting donations, as people from all around the world can send any crypto they want without taking extra steps. 

How Does A Crypto Payment Gateway Work?

Once you understand how it works, you will see how simple and safe it is. Let’s take Whitepay as an example. Here’s how your clients can use crypto POS terminals:

  1. A client states that they want to pay with crypto, so the salesperson clicks “Crypto” on the terminal. 
  2. If your terminal accepts more than one cryptocurrency, the client can choose the one they prefer. It should be noted that they should pick the correct network standard. 
  3. After that, the salesperson enters the amount in the currency used by the business. The price in chosen digital assets is calculated automatically. 
  4. The client then reads the terms of use and accepts them to continue. The exchange rate doesn’t change for 120 seconds. 
  5. After completing the previous step, the client will see the QR code that need to be scanned. 
  6. In the window that opens, they need to enter payment information: wallet address, cryptocurrency, and the amount. It should be copied and entered into the client’s cryptocurrency wallet. 
  7. As soon as the funds are received, the message on the screen of the terminal will change to “Completed”. 

If a client makes a mistake and sends less than the required amount, they can send the rest of the assets to the same address. 

Online payment pages are even easier to use. Just like with any other website, a client decides which goods or services they want to buy and proceeds to pay. All they need to do is to choose the crypto payment and follow the instructions. 

Advantages And Disadvantages Of Cryptocurrency Payment Processing System

The biggest and most obvious advantage is that you can make your business stand out for potential clients. Most people just don’t want to take any extra steps when it comes to buying stuff. That’s why the idea of exchanging cryptocurrencies for fiat and only then paying for something can repel lots of people who prefer using digital currencies. And we are talking about more than 420 million people worldwide. Imagine the sales! 

The second advantage is that the fees are usually lower compared to bank transfers because there are fewer intermediaries between you and the clients. This is also one of the reasons why crypto transactions are faster. Payment processing of cryptocurrencies usually takes up to a few hours (but usually a few seconds or minutes), while banks can take up to 10 days. 

Another advantage of crypto payments is that they are available worldwide. Cryptocurrencies have no borders, and they don’t depend on local currency rates. Your clients can pay for your goods or services in almost any country. However, some countries have restrictions that should be taken into account before using crypto as a payment method. 

There are, of course, some disadvantages of crypto payment processing. One of them is the volatility of cryptocurrencies. Their price can change quite unexpectedly, so you need to be quick with exchanging. 

Another drawback is that the usage of cryptocurrency can be restricted by some governments. They can ask for extra taxes or forbid crypto entirely. So you need to make sure that you can legally accept digital assets in the country your business operates in. 

And lastly, safety is also an important issue, as the crypto industry is prone to hacker attacks, phishing, and fraud. There is a number of measures that you can take to avoid being hacked or deceived. Make sure you are implementing all of them. 

Final Thoughts On Crypto Payment Processing

There is no denying that cryptocurrency is still in its early stages. However, millions of people are already using it. So you should consider adding this payment method and becoming one of the early adopters who stand out from the crowd of outdated businesses. Of course, there are some disadvantages to crypto payments, but the advantages definitely outweigh them. Do your own research, choose the best provider to work with, and enjoy the results.