Being as flexible and diverse as possible when it comes to payment processing is one sure way to attract and keep customers. After all, purchases are the lifeblood of your retail establishment. It might even be time to add accepting Bitcoin and other types of cryptocurrency payments into your business’s portfolio.
What is Cryptocurrency?
It might sound like something straight out of a video game, but cryptocurrency is an increasingly popular means to pay for goods and services. Instead of employing paper bills and metallic coins, cryptocurrency is 100 percent digital. It relies on secure encryption and the internet to transfer funds from one entity to another. It has earned its maverick reputation because it does not depend on the conventional banking system. Even so, it is accepted like cash in many countries and is used to purchase itemsand services online.
If you run any sort of brick-and-mortar or online enterprise that accepts credit and debit card payments, you know that doing so comes at a cost. Your merchant services provider charges you per transaction, and you also pay fixed processing fees to the various card providers. Add to that what you shell out for equipment, interest, and late fees, and these charges can lead to a significant drain on your profits.
By contrast, cryptocurrencies have less overhead since they are not affiliated with major banks. Because no big financial institution is charging you to verify every transaction, you can save anywhere from 2 to 5 percent on each payment you process.
Fast Turn Around
Do you ever get frustrated waiting for your bank to make funds available in your account? This is where cryptocurrency really shines. Unencumbered by slow financial institutions, transfers happen in real time, meaning that you only need to wait a few minutes to have access to your money.
Do you buy or sell goods or services on the worldwide market? If so, accepting cryptocurrency payments can streamline many of your processes. Thanks to Bitcoin and other digital options in this category, you can avoid costly exchange rates and foreign transaction costs. If these obstacles have kept you from branching out to do business in other nations, cryptocurrency just might give you the low-cost alternative you need.
Minimize Chargebacks and Fraud
As a business owner, you are probably already aware of the toll that fraud and chargebacks can take on your operations. Identity theft and other criminal behaviors can be expensive, time-consuming, and emotionally exhausting to deal with. Furthermore, chargebacks can do damage to your ability to do business. When customers demand a refund via their bank or credit card provider instead of going to you directly, you lose money on the products they purchased as well as all of the time it takes to address the problem. Worst of all, developing a record of too many chargebacks could result in your merchant account being terminated, and make it difficult to get another or to be accepted for business loans.
With that in mind, cryptocurrency can provide a refreshing change. When a cryptocurrency purchase is made, it is no different from cash. Either the buyer has the funds or they don’t, and those funds are directly transferred to the seller. Furthermore, all transactions are final, and each must be approved by both parties before they will go through. That eliminates the possibility of buyer’s remorse, fraud, and chargebacks.
Jump into An Expanding Market
Up until recently, the world of cryptocurrencies pretty much remained the realm of tech geeks and cutting-edge innovators who didn’t mind taking a few risks. However, this way of paying digitally is becoming increasingly mainstream and accepted as consumers gradually come to understand how it works, as well as the advantages it carries. It stands to reason that as a business owner, you should wish to provide every possible means of payment that your potential buyers want to use – particularly if it is secure and virtually fraud- and chargeback-proof. As a side benefit, you can also capitalize on coming across as a tech-savvy innovator who is not only flexible but eager to adopt popular trends that make sense.
How to Adopt Cryptocurrency
As cash and card-present transactions wane in favor of digital wallets and options such as Bitcoin, the time has come to ask yourself if cryptocurrency can benefit your company. Considering the ease of use, transaction speeds, and freedom from reversals and chargebacks that it brings, you are probably leaning toward “yes”. But it’s not as easy as just wanting it.
To get started, you must set up a merchant wallet account. These customizable accounts that can be established in minutes convert Bitcoins, or other cryptocurrencies, into dollars or whatever your base currency may be.
Other Challenges to Using Cryptocurrency
One of the biggest challenges to using cryptocurrency is price volatility. It’s hard to know from one day to the next what the value of coins will be, which is something that can take a lot of time to stay on top of. Time that would be much better spent focusing on your business.
Security is another issue that can arise. There is no way to 100% prevent cybercriminals from hacking into your digital wallet. While credit cards and bank accounts usually have the means to recover your money, cryptocurrency is not backed or insured in any way.
Cryptocurrency is also still so new that the regulations surrounding it are being changed frequently as new challenges arise. If you choose to accept cryptocurrency at your business, you should be prepared to make constant changes and be adaptable as new regulations are put in place.