Cryptocurrency is turning into mainstream. Bitcoin is the largest virtual currency by market capitalization in the world. Are you interested in offering this payment option to your customers? What about recurring payment processing?
Cryptocurrencies are tradable digital assets. This digital form of money is becoming more popular among Americans. According to the assistant director of the FBI’s Cyber Division, Bryan Vorndran, crypto is the main currency, the primary vehicle, that can facilitate extortion payments.
To accept or not cryptocurrency depends on your customer base and business model. Since this is a digital currency, eCommerce businesses can easily adopt it, while traditional ones can find it less suitable.
Cryptocurrency Payments & Recurring Payment Processing
About 1/3 of small business owners and senior executives report their companies are currently accepting cryptocurrencies, according to a recent survey business invoice software provider Skynova. What are the advantages of cryptocurrency payments?
- Cryptocurrency can guarantee a higher level of security compared to credit/debit card payments. The thing is that cryptocurrencies don’t need third-party verification.
- This type of payment transactions is irreversible. This means only the party receiving the funds can refund these transactions.
- Cryptocurrencies come with much lower fees if any. For example, the fees of some Bitcoin exchanges are under 1%. So, if your customers are overseas, cryptocurrencies can help you stay away from international currency payment fees.
- The Internal revenue Service (IRS) views cryptocurrency as “property” for tax purposes. As a result, when accepting cryptocurrency, you must report it as gross income based on its fair market value when it was received.
Remember that cryptocurrencies fluctuate more in price compared to government-issued currencies. Such volatility can be risky for companies holding them on their balance sheets. Now, national governments are scrutinizing crypto money more vigorously than before, which may result in increased regulation of cryptocurrencies in the years to come.
Whatever payment method you consider offering to your customers, you need to work with a reliable and experienced payments specialist. With a reputable processing company, you can enjoy the most secure, advanced and cheapest rates for payment processing, including recurring payment processing.
What to Consider When Accepting Cryptocurrency
If you’re going to allow your customers to pay with cryptocurrency, you should take into account the specifics of this type of digital money.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.