How to accept bitcoin payments for your business?
BestRate has got many questions regarding how to process crypto payments recently. Many online stores, e-commerce, retail players would like to give this option to their users. We don’t need many graphs showing interest in accepting crypto payments for their products and services, there are some big companies showing the example to the others, like Microsoft, Expedia, Overstock, Amazon, Walmart, Digital Galaxus, Avnet, etc. We would like to explain the common questions for crypto processing and provide the necessary answers.
Why does the business need it?
The number of crypto wallets grows exponentially. Business has no option: if you want to increase the conversion into a paying customer, it’s a good idea to provide the lead with the whole stack of options, including bitcoin or any other crypto payment. No doubt, this provides good marketing possibilities and impact too. Why not try one month trial for free?
How to avoid market volatility risks?
The market is still very volatile, prices rise and drop every day. It’s a very common situation when Alice wants to buy something from Bob, let’s say iPhone and sends Bob 1000$ in BTC. But next day, Bob realizes that he has 900$ only and he still needs to ship the device. The situation could be better of course if the BTC would grow the next day, so Bob has 1100$. But in this case, Alice might be upset. How to fix this?
We have a simple solution: at the moment of payment, we convert all incoming payments in 120+ blockchains and crypto coins into a stable token, like TUSD. The idea of the stable token is self-explanatory: its price is stable, in TUSD case it’s always 1:1 to US dollar. TrustToken, the company which issued these tokens is trust-worthy and passed several audits, stating that they have the corresponding amount of money to the amount of the tokens they offered to the market.
If we return back to Alice and Bob, that would mean that Bob will get 1000$ in TUSD, which will be 1000$ in a week or in a month. Also, in case of reimbursement Bob would have the possibility to make money back without any issue.
What are the rates and commissions?
BestRate provides a transparent answer to this question. Use your crypto exchange account for crypto payments. To explain this statement, let’s take a look at a number of existing solutions at the market. All these solutions have several common issues, which drawback the attention of business to crypto payments:
- Unclear rates
- Unclear commissions
The problem is more serious than some other people think. For example, the client wants to receive all payments in BTC. But the user wants to pay in ETH. If the crypto processing company states to have 0.5% commission for ETH>ETH conversion, it might not be true at the end. Why? It’s very difficult to get the current rate of ETH and BTC. Where does it come from? Which exchange? Or aggregated value from several liquidity providers? By simply taking the 1-2% on top many crypto payment processing companies can generate additional revenues from your sales. And you wouldn’t even know about it and you don’t have any instrument to check it. Also, the exchange commission of ETH-BTC might be unclear. We know about the examples that 0.5% commission is applied to small amounts of processed crypto, but if you expect several thousands of dollars as a single payment it may grow exponentially. It’s easier to hide the 1% on top in the big transaction.
BestRate has another architecture. Our client can integrate business or personal crypto exchange account in the system. In this case, all the transactions are transparent and clear and might be checked at the crypto exchange at any moment. We use crypto exchange rate and we exchange crypto(for example, to TUSD) at this crypto exchange automatically using our trading bots, what could be more reliable? And we provide another business model – subscription with no additional fees.
How can I get the payment in USD(FIAT)?
Use your local crypto exchange. For US users we might recommend CoinBase, for EU users -> Kraken, but it’s up to you which exchange you can use. With BestRate you can process all crypto payments at your crypto exchange account and you have the possibility to withdraw it at any moment.
For instance, here are the rates for FIAT withdrawals using Kraken. 0.09 EUR, isn’t it good enough?
What if I don’t want to get bank transfer from the crypto exchange directly?
This is common practice. Contact us and we’ll make it for you by ourselves or through our partners.
Which crypto exchange can I use?
At the moment, we support 7 out of 10 of the most reliable crypto exchanges according to SEC. You can choose between Binance, Bitfinex, BitFlyer, Coinbase, Gemini, itbit, Kraken by yourself. Please create an account there, pass the KYC and integrate it with BestRate. If you need to add another exchange, contact us, as technically we support up to 130 exchanges.
How can I integrate it?
The process is quite simple and was described in this post.
Is it secure?
Yes, we don’t have withdrawals right with your crypto exchange account. However, we can manage all incoming payments and process exchanges with the trading bots.
What would be the overall commission for crypto payments?
Blockchain gas – 0.1%. Please check the other coins gas here.
Crypto exchange conversion (stable coin) – up to 0.5%, but should be less than that, it’s a variable depending on the liquidity.
Withdrawal – 5$(US) or 0.09(SEPA) with Kraken. Please check other exchanges to check their rates too.
Total transaction value: 0.75-1%, which is much less than traditional payments systems. You can ce
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