How To Accept Crypto Payments On the Website?
With cryptocurrency becoming a mainstream payment option, many of us are asking how to accept crypto payments on your website. It is partly because cryptocurrency makes payments more secure without the intervention of any third party like a bank.
Accepting crypto payments on your website will help your business to remain competitive, lower processing fees and add a new customer base.
Cryptocurrency payments are appealing, especially for high-risk merchants who lack access to traditional payment mechanisms. Since crypto has supported unbanked regions to enjoy the same level of facilities, thus having crypto payments as an option on your website will open new avenues for your business.
We will guide you in simple steps as to how to accept crypto payments on your website through this guide, so read till the end to open floodgates of new opportunities for your business.
Step-by-Step Guide to Accept Crypto Payments
Although the process to accept crypto payments differs slightly depending on your online platform, certain basic steps, as discussed below, are common.
- Understand Local Regulations
Firstly, speak to any accountant or local lawyer who can guide you about the legal implications of accepting crypto payments, including Bitcoin and Ethereum. As rules and regulations vary from country to country when it comes to cryptos, thus knowing the restrictions at hand is as important as how to accept crypto payments on the website.
Similarly, knowledge of applicable taxes can also help you save extra money. For instance, if your state charges more taxes on crypto payments, staying with your old payment option is better. On the contrary, if crypto is charged with lesser taxes, switching to cryptocurrency is a viable option.
In short, understanding local rules and regulations can help you decide whether switching to crypto payment is feasible for your business.
- Set Up A Crypto Payment Gateway
The second step is to set up a crypto payment gateway or a wallet. A wallet will hold your cryptocurrency, while a payment gateway will support you in converting your crypto into fiat money like U.S., Dollars.
Gateways are generally a preferred option as they offer flexibility as you can keep or convert your cryptocurrency. However, the crypto payment gateway will charge transaction fees (around 1%). In contrast, a wallet does not charge fees.
However, the decision is all yours whether you want a gateway or a wallet. It usually depends on the following points.
- Transaction frequency
- Size of the payment
- Type of cryptocurrency
- Nature of business
- Type of product or services
- Enable Crypto Payment On Checkout
Setting up crypto payments on your website is as simple as downloading an app or plug-in on your e-commerce website. However, if you cannot benefit from these facilities, you can revert to another alternative: integrate your wallet with payments through an HTML code (Coinabse and BitPay).
With the increase in crypto acceptability, many developers have developed plug-ins that usually work perfectly with websites. However, you can hire an IT expert to provide versatility and get your customized crypto payment checkout page.
We recommend initially using a free integrated tool before developing your crypto checkout option.
- Integrate Crypto Payments With Accounting
Recording transactions on accounting software is key to keeping track of all the transactions. It is vital, especially for a highly volatile industry like cryptos. If you have decided to adopt crypto payments, integrate it with your current accounting software.
Well-recorded data becomes the basis for future investment decisions and developing profit and loss.
- Cryptocurrency Volatility
The last step is to prepare a well-articulated long-term strategy. Since cryptocurrencies are highly volatile, thus setting product prices becomes vital. Another step is to convert received cryptos into cash immediately, and it will safeguard your finances from potential price drops.
Advantages and Disadvantages of Crypto Payments
The following are a few advantages and disadvantages of having a crypto payment option on a website.
- Fewer transaction fees
- No chargeback risks
- Fast transactions
- High security
- Increased client base as many users want to pay in cryptocurrency
- Holding cryptocurrency is an investment opportunity
- Simplifies international transactions
- Not widely used
- No customer service support for merchants
- Required regular updates to keep up with crypto regulations
Crypto Payment Platforms
Numerous platforms support and process crypto payments on websites. Although, it is vital to keenly study each option in detail before opting for any of them. Moreover, this platform helps merchants easily convert their cryptocurrencies into fiat money or even users can hold their cryptocurrencies.
The following crypto payment gateways can help you instantly convert your cryptos into cash.
- Coinbase charge 1% of the transaction fee and has integrations with famous e-commerce platforms, including Shopify and WooCommece. It holds the exchange rate till customer checkouts.
- BitPay charges 1% transaction fees while processing transactions, and it locks the exchange rate for 15 minutes when a customer begins a payment.
- PayPal automatically converts cryptocurrencies into cash.
Frequently Asked Questions
Can I accept Bitcoin on PayPal?
Yes. Merchants can accept Bitcoins on PayPal, which converts them into fiat money like U.S. Dollars.
Can small businesses accept crypto payments?
Since there is no restriction on the size of businesses, thus any business can start accepting cryptocurrencies as a payment option. Therefore, many small businesses have already set up platforms to accept crypto payments.
How can I accept crypto payments anonymously?
You can use a VPN to accept crypto payments anonymously to encrypt your traffic.
That concludes our guide to solving the query of how to accept crypto payments on your website. With increased popularity, many merchants are looking for ways to integrate and develop mechanisms to accept cryptos as a payment method on their e-commerce portals.
As we have learned, it is a straightforward mechanism; you only need to check local regulations and select between a wallet and a payment gateway. Once decided, you can download and install a plug-in or an app to integrate your accounting system.
Moreover, having a crypto payment option will attract new customers to your business, thus increasing your customer base. Likewise, crypto payments are fast and secure and charge fewer transaction fees than traditional payments.
We hope you enjoyed it and are well-versed in accepting crypto payments on your website. Good luck and adios!