More and more companies are accepting crypto currency as a form of payment. In particular Bitcoin which at the current time of writing represents 55% of the crypto space by market capital.
Tools have begun to come to the market allowing companies to accept bitcoin. The old method for payment would have been a bitcoin payment instruction which is equivalent to a standard online banking payment.
However, to a greater degree this can be done in a standard e-commerce store and this is growing over time and also includes some of the larger branded names.
A simple advantage:
- A customer orders your product using a debit or credit card.
- You deliver the product to the customer.
- Once the customer receives the product, he/she initiates a charge-back. They claim that the package never arrived, their card was stolen, or some similar excuse.
- You’re stuck wasting resources to fight the claim. You have to prove that the product arrived successfully while the card company locks the funds in the meantime. This is especially troublesome for e-commerce businesses with an already limited cash flow.
Cryptocurrency payments are irreversible. Once a customer pays you, there’s no way they can reverse the transaction. You would have to initiate a payment back to the customer. Because of this, chargeback fraud is virtually impossible when using cryptocurrency payments.
Lower Transaction Fees. Most payment processors charge around 3.0% per transaction. On top of that, some also have markup and monthly fees.
Cryptocurrency transaction fees are significantly less. Current bitcoin fees are < $1.00 per transaction (in fact today $0.25 would suffice) and are estimated to decrease with further SegWit adoption and Lightning Network implementation. Additionally, you have significant control over the fees that you pay. The higher your transaction fee, the quicker you’ll receive your payment. If you’re in no rush, just set a lower fee payment.
LEM solutions does not usually link to external sites. However, a good article which lists the pro’s and con’s from coincentral on how to begin this process can be found on the link below:
https://coincentral.com/accepting-cryptocurrency-payments-ecommerce-store/
Questions:
A number of people have asked “where can i spend my bitcoin”. Aside from the major vendors cited in the coincentral link above, one can now access regular retail providers.
Here is a good example, if you fancy a holiday in Australia at the Port Stephens Motel in Nelson Bay where the bitcoin payment link is on the front page and the vendor is even offering a $10 discount (per night!) for a crypto booking.
Thank you for reading