How to Accept Payments In Bitcoin (Cryptocurrency)?
There is a huge list of online and offline business accepting Bitcoin payments. Are you a shop or website owner? Are you looking to add bitcoin payments to your website or shop but don’t know how to start accepting bitcoin payment? For each and every business (especially businesses related to trading), payment transactions are essential aspects, since businesses normally involve the following two important strategies:
- Making payments for buying goods or services necessary for a business
- Accepting or receiving payments for sell the products or services to the merchants.
In order for such transactions to be done, an innovative cryptocurrency named bitcoin (BTC) was introduced. Bitcoin is the topmost cryptocurrency used by most of the businesses and traders, because of its familiarity and distinctive uses.
Unique features and uses of Bitcoins:
- Bitcoin is a worldwide accepted currency with an easy usage facility.
- Bitcoin transaction charges are comparatively lower than the transaction charges of any other cryptocurrencies.
- Transactions done via bitcoins are usually safe and faster in nature.
[Steps] How to Accept Payment in Bitcoin?
The following steps will give us the method of processing bitcoin payments by business persons (online retailers or restaurateurs):
Bitcoin address creation:
If a user wants to initiate bitcoin payments in his business, first he needs to create a bitcoin address, which is nothing but the wallet used to store bitcoins. The customers will make use of such bitcoin wallets to transfer their money to the retailers.
Also, the money available in the bitcoin wallets needs to be cleaned periodically in order to overcome the safety issues. This means that at the end of the business day, the money for that particular day should be dropped out from the wallet and stored somewhere else (bank account). Also, it is recommended that it will be better to keep only a considerable amount of funds in the wallet. Rest of the funds shall be transferred to ensure security.
The users can utilize the money available in their wallets for meeting their daily business needs. Besides the creation and maintenance of bitcoin wallets, the users must also be careful in securing their wallets without fail.
Payment Processor to Accept Payments in Bitcoin
In some business cases (especially businesses related to sales processes), making payments directly into bitcoin wallets will be somewhat complicated to do. In such cases, the bitcoin users need to go for a payment processor, which actually makes the transactions simple and efficient. Earlier we published a detailed article on Top 11 Cryptocurrency Payment Gateways. The best three payment processors available in the market nowadays include:
The users may also go for a payment processor in case of making multiple transactions at a specific time interval.
The users can enjoy the unlimited services offered by payment processors by paying certain charges. This means that a considerable amount of fee is applicable for using the payment processors, and it is not available at free – of – cost. Though it is not a free service, the charges are comparatively cheaper than any other payment options like Paypal payments or credit card payments and so on.
A distinct benefit of payment processors is that they can also be used for the instant conversion of money into various kinds of fiat currency types available in the market.
Some other additional uses of payment processors include the following:
- Email invoice transfers
- Insertion of shopping cart plugins into the online retail shops
- POS setups in case of a cafe or a restaurant business.
Advertising the acceptance of Bitcoins:
Everyone encouraging bitcoin payments should use an option called ‘Bitcoin Accepted here’, thereby letting the customers aware of the fact that whether the particular retailer is accepting bitcoin payments or not. Of course, it is a perfect intimation of bitcoin usage in a business.
Tax and records management:
It is extremely necessary for businesses to hold on or keep track of the records (details) related to the payment transactions especially bitcoin transactions. Such records are usually maintained to overcome the accountancy issues, which will definitely eliminate the financial problems in the future.
Besides accountancy issues, the users must also have to focus on tax issues, since taxes are playing a major role in a business development. A successful business relies on the effective tax management. If the taxes are not properly managed, the business will definitely face a lot of issues on its financial side.