Cryptocurrency is becoming more popular every year, and as a result, businesses across a wide range of industries are starting to explore it. Crypto payment processing is a great way to protect your company from chargebacks, attract new customers, boost loyalty among existing ones, and save time and money on traditional banking services.
How Does Crypto processing Work?
Accepting cryptocurrency directly on your website or trading platform is simpler than it might seem. All you need is a crypto payment solution that can be integrated into your site. Ideally, you should opt for a company-focused crypto wallet that includes all the tools needed to accept and manage crypto safely and efficiently.
The wallet integrates with your site via API. Once set up, your customers will see cryptocurrency as a new payment option. When selected, the wallet generates a unique address for the transaction. Once the customer transfers the funds, the wallet sends an automatic callback to your website, updating the customer's balance in their account.
Withdrawing funds is just as straightforward: the customer submits a request on your site, which is sent to the wallet, and the funds are then transferred to the address provided.
Security Tip: A well-built business bitcoin payment processing solutions will offer encrypted callbacks to prevent interception or manipulation. It may also allow you to enable or disable API-based withdrawals as needed.
Key Benefits of Cryptoprocessing for Businesses
- No chargebacks: Blockchain transactions are irreversible. There's no mechanism for forced refunds like with traditional banking systems. This makes crypto especially valuable for businesses operating in high-risk sectors.
- Instant access to funds: There are no delays or freezes, unlike traditional banking methods.
- Stablecoin advantage:Â By using stablecoins like USDT, businesses can avoid the volatility often associated with digital assets. The conversion rate from USDT to USD remains consistently stable, making it an ideal choice for businesses seeking predictable transaction values. Stable coins are pegged to fiat currencies or exchange-traded commodities, which provides price stability.
- Expanded customer base: Customers who previously couldn't access your services due to expensive cross-border transactions or issues with bank cards can now pay easily.
Choosing a Secure Crypto Payment Solution
Working with cryptocurrency comes with its own challenges and risks. To protect your company, it's essential to choose a secure and robust payment solution "” one that addresses the potential vulnerabilities of digital currencies.
Non-Custodial Wallets
This is a critically important metric. A non-custodial solution gives you full control over your funds. In fact, the software for such a product can even be installed on your own server. This enables you to pursue a truly independent financial strategy while maintaining complete ownership of your assets and transaction history.
Cloud-based solutions don't offer this level of control over your cryptocurrency. Your private keys won't be in your possession, which means there's always a risk that third parties could access or use your assets at their discretion. Keep this in mind if, for any reason, you decide to go with a custodial crypto wallet.
IP Address Protection
Cryptocurrencies isn't anonymous by default. When your wallet initiates a transaction, it shares its IP address with the network node (a computer connected to the blockchain). Some nodes may be run by fraudsters. If they obtain your wallet's real IP address, they could trace the physical location of your server "” and possibly even identify the business owner.
That's not a risk you want to take, especially if you're handling valuable digital assets. A secure solution should mask your IP. For instance, BitHide's business wallet uses both Tor and VPN to change the real IP multiple times before sending it to the node, making it virtually impossible to trace.
Untraceable Wallet Turnover
To prevent others from seeing your business's turnover or tracing your transaction history, it's important to keep payments unlinked from one another. This can be achieved by:
- Using disposable intermediate addresses to aggregate funds instead of one central. BitHide calls this feature "Proxy Payments."
- Rotating the addresses used to pay blockchain fees, so that transactions can't be linked by looking at the fee address.
Final Thoughts
If you want to start accepting crypto from clients, you'll need a solid crypto payment processing setup. Cryptocurrency can protect your business from chargebacks and help you reach new customers "” but only if you choose the right solution that secures your assets and shields your data from fraudsters and competitors.