Last editedMar 20222 min read
Bitcoin is one of many cryptocurrencies, or digital currencies, that are outside the control of any country, treasury, or central bank. Bitcoin works via a system called a “blockchain’, or a network of computers. Every time a bitcoin transaction is completed, the entire network is updated, so that the transaction can be validated by users on the bitcoin network.
Just as a bank processing gateway is required to process fiat currencies (government-issued currency), an online bitcoin payment gateway is required to service these cryptocurrency transactions.
Bitcoin payment gateways, or settlement gateways, allow for the easy and direct transfer of funds via credit cards, ATM cards and lender transfers. A bitcoin payment gateway can facilitate fast and secure transactions on a website. It can also process deposits and withdrawals of bitcoin funds, as well as mutual settlements of bitcoin online.
In this post we’ll look at how to set up a bitcoin payment gateway and the merits of doing so.
How to set up a bitcoin online payment gateway
If you have an ecommerce site, you can get started integrating bitcoin in your store with a BTC payment processor. Most ecommerce platforms have existing integrations which makes things easy. Ecommerce sellers using Magento, for example, can use BitPay and CoinGate, while Shopify merchants can use Coinbase, BitPay or GoCoin to accept bitcoin payments.
It’s important to do your homework and if you’re in any doubt about your options speak to your ecommerce platform provider. They should be able to tell you how to integrate your store with a bitcoin online payment gateway.
When you’re searching for a bitcoin payment gateway, look out for the following:
Transaction fees: Bitcoin transaction fees are lower than credit card fees. Many providers have rates as low as 1%.
Frequency of payouts: Some gateways will initiate payouts daily, while others can take up to three days.
Supported currencies: Make sure your payment processor supports your payout currency preferences.
Supported countries: Some bitcoin gateways cannot carry out transactions in certain countries, so check your gateway provider supports the country you do business in.
Customer support: If you need help setting up bitcoin payments make sure you can contact your provider via your preferred method, for example, live chat.
How to buy bitcoin via a credit card to bitcoin payment gateway
Many people ask if it’s possible to buy bitcoin with a credit card. While bitcoin is tightly regulated in Australia, there are no laws preventing you from purchasing bitcoin using a credit card – but it all depends on your credit card provider. Some companies block purchases of bitcoins, while others will allow you to buy bitcoin without any trouble. However, a fee will probably be incurred by the bitcoin payment gateway provider.
Three of the more popular and reliable credit card to bitcoin payment gateways that will accept credit cards as a means of payment include:
Coinmama: They have high spending limits and numerous payment options including Apple pay. Coinmama charges a 5% fee for purchasing cryptocurrency using a credit card.
CoinLoft: Offers multiple ways to buy bitcoin and other cryptocurrencies in just minutes and offers good customer support.
Crypto.com: Charges a fee of 3.5% when using a credit card.
The benefits of an anonymous bitcoin payment gateway
The advantages of using an anonymous bitcoin payment gateway include:
Offering customers greater flexibility in terms of their payment options
Discretion, since crypto asset transactions don’t show up on a bank statement
Security of payment, since transactions are encoded using cryptography
Cryptocurrency transactions are immune from chargeback fraud
Reduced costs compared to paying via credit card
Integrating blockchain technology into the business offers its own benefits
Bitcoin is becoming increasingly popular as a means to trade online and can help to increase the customer base and protect businesses from chargeback fraud. In order to start accepting payments in bitcoin, however, it’s essential to identify the right bitcoin payment gateway for your requirements.
We can help
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