A Cryptocurrency Merchant Account lets businesses send and receive cryptocurrency and alt-coins. Cryptocurrency Merchant Accounts are designed for high-risk cryptocurrency merchants. Merchants can transact in many currencies with tailored accounts. Crypto merchant accounts have less paperwork than traditional banking and card provider merchant accounts. Crypto businesses cannot open conventional merchant accounts because mainstream banks consider crypto high-risk.
Cryptocurrency Merchant Accounts support:
- Cryptocurrency wallets
- Blockchain apps
- Cryptocurrency crowdfunding
- Crypto exchanges
- Auction and NFT marketplaces
- Crypto-hardware manufacturers
- And more…
Bitcoin Merchant Accounts and Bitcoin Bank Accounts are also used in fintech. These are usually the same merchant account.
Apply for a crypto merchant account now to open up new possibilities.
Why Do Banks Consider Cryptocurrency High-Risk?
Despite the many legitimate and growing uses of crypto, banks are still wary of its history of illegal transactions and services. Mainstream banks are unwilling to take on additional risks because most crypto coins have volatile market behavior and value fluctuations. The main reasons banks consider cryptocurrencies high-risk are:
- Low investment
Cryptocurrencies are unregulated and unbanked, unlike fiat currencies like the British Pound (£). The Bank of England, a large financial institution, can adjust the pound to regulate it. This reduces Fiat currency value fluctuations.
Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) depend mostly on supply and demand and have few institutional investors. Thus, crypto is a high-risk investment prone to price swings.
- Volatility and lack of regulation
Cryptocurrencies can fluctuate in value by hundreds of pounds. Banks avoid crypto transactions because these fluctuations are too risky.
- Lack of security
While major digital wallets like Coinbase offer safe places to store an average investor’s cryptos, larger transactions have been vulnerable to fraud and hacking. This is because this technology is new. Banks are still not ready to take this risk, especially when they can operate with Fiat currency with almost complete security.
- Cryptocurrencies’ novelty
Mainstream banks distrust crypto due to a lack of understanding. Due to the risk of entering the crypto space, mainstream banks may not be interested in cryptocurrency’s future.
- Illicit association
Although cryptos are used for safe and regular purchases, many mainstream financial institutions still associate them with illegal profit-making, usually through the dark web.
Businesses that want to accept cryptocurrencies as payment should think about crypto payment processor implementing.
Business Acceptance of Cryptocurrency Payments
A website must follow these steps to accept crypto payments.
Choose your cryptocurrency.
Businesses should choose which cryptocurrencies to accept through their merchant account first. BTC is the most widely used cryptocurrency, so we recommend offering it. LTC and ETH may have varying audiences and popularity.
Use obscure cryptocurrencies like SOL and ADA if your business has experience with them. Be aware of the risks of trading obscure “alt” coins.
Cryptocurrency merchant account
Next, your business needs a crypto merchant account.
Install a cryptocurrency payment gateway.
Finally, your site must have a cryptocurrency payment gateway for customers to use crypto.
Want a crypto merchant account? Your company will lead comprehensive payment processing. It’s just another payment method. BitHide service provider can help you run your crypto payment services smoothly.