How to organize the reception of cryptocurrency in an online store (and why do you need it)

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Why you should accept bitcoins and other cryptocurrencies in your store

Despite the fact that many people consider cryptocurrencies to be a speculative investment tool, you should still add them as a payment option if you manage an online store.

Several reputable stores have already added the ability to pay with cryptocurrencies, and their number is increasing every week.

In this article, we will analyze the pros and cons of including cryptocurrency as an experimental method of payment and talk about the resources needed to add it to your store.

Pros

The likelihood of fraud is reduced. Refund fraud is common on e-commerce platforms.

Here is how it works

  • The customer orders the goods from you using a debit or credit card.
  • You deliver him this item.
  • Upon receipt of the goods, the customer initiates a refund. The fraudster claims that the parcel was not delivered, that a card was stolen from him or finds some other excuse.
  • You spend time and resources dealing with a claim. Until you prove that the product has been successfully delivered, the card company keeps the funds in a locked state. This is especially troublesome for e-commerce businesses with already limited cash flow.

Cryptocurrency payments are irreversible. Once the customer pays you, he will no longer be able to change the transaction.

In which case you will have to initiate the payment back to the client yourself. For this reason, refund fraud when using cryptocurrencies is almost impossible.

Cryptocurrency payments are irreversible. Once the customer pays you, he will no longer be able to change the transaction.
In which case you will have to initiate the payment back to the client yourself. For this reason, refund fraud when using cryptocurrencies is almost impossible.In addition, you get almost complete control over the commissions you pay. The higher the transaction fee, the faster your payment will go. If you’re not in a hurry, just set a lower commission.
Other cryptocurrency projects, such as Nano, are developing instant payment solutions without any transaction fees. Some online retailers have even begun to successfully implement Nano on their platforms.

Great customer reach. In addition to the transactional benefits of cryptocurrency, you also get additional customers.
In a world where governments and large corporations are trying to keep track of your every move, shoppers are becoming increasingly confidential.
More and more people are starting to use cryptocurrencies, such as Bitcoin, for online purchases in order to get at least some form of anonymity.
The presence of cryptocurrency payments as an option when placing an order will help interest this group of buyers.

Minuses

Price volatility. As you probably know, the price of Bitcoin and most other digital assets can change every day in a rather large range.
As the owner of an online store, you want to be sure that the $ 50 you get for your product will still cost $ 50 in a week.
A simple solution to this problem is to convert the cryptocurrency to fiat immediately after receiving it. Several payment processors support this optionally.
As cryptocurrencies become more popular in the real world, prices will also begin to level out.

Additional customization. As for adding any new features to the online trading platform, here you need to do some additional work.
To actually accept cryptocurrency payments, you need to configure the server side, as well as develop a new user interface so that your customers have the opportunity to make these payments.
Although there is good news. Leading cryptocurrency payment processors have turnkey solutions that provide everything you need to easily add cryptocurrency to your platform.
They include everything from features related to wallet integration to the “Pay with Bitcoin” button, which can be added to the transaction processing screen.

Confusion for customers. Buyers may be confused about additional options when placing an order.
Despite the fact that Bitcoin is becoming increasingly popular, we are still at an early stage of its adoption. Be prepared to answer questions from curious customers about how this works.

How to start accepting cryptocurrency payments

There is no shortage of options on how to start accepting cryptocurrencies on the platform of an online store. Some methods are simpler than others, but they lack configuration flexibility.

Hard way

If you do not want to use third-party payment processors, you can manually configure wallets and exchange accounts to receive payments directly.
First of all, you need to choose a wallet to receive payments. Keep in mind that different wallets support different coins, so the option you choose will determine which currencies you can accept in your store.
Ledger Nano S and Trezor hardware wallets are more secure than their online counterparts, although they both cost about $ 100. They also support more varied coins than most other wallets.

If you need to convert cryptocurrency into fiat money, you must also create an account on the exchange.
Again, different exchanges support different currencies, so take the time to figure out which exchange is best for your needs.
Gemini and GDAX are great options if you are comfortable with the fact that they only support the most popular coins.
Currently, GDAX works with Bitcoin, Ethereum, Litecoin and Bitcoin Cash, while Gemini only supports Bitcoin and Ethereum. Pay attention to Kraken if you are interested in a large selection of coins.

After creating the wallet and setting up accounts, you will need some knowledge of web development for the effective and safe integration of payments on your website.

The list of works includes

  • Creating a user interface for cryptocurrency payments.
  • Generation of new addresses for receiving coins.
  • Securing customer information.
  • Transfer funds from your wallet to the exchange.
  • Exchange of cryptocurrency for fiat money on the exchange.

If you find it difficult to program these tasks yourself, you can hire a freelance developer who will do the job for the money.

Easy way

A slightly more expensive option: you can integrate the API of one of the many cryptocurrency payment service providers in your store.
These companies carry out most of the hard work of setting up, processing cryptocurrency payments and converting to fiat currency.
Their solutions typically include user interface components as well as a robust set of API calls.
This is great for all levels of competency, as you can start with the standard option, and then customize it and make it individual over time.
BitPay and Coinbase are the two most popular payment solutions. BitPay charges only 1% for each transaction, and Coinbase works without commissions.
However, Coinbase charges a fee of 1% when cashing Bitcoin in a bank, but only after your first million dollars.

The easiest way

If your online store is powered by WordPress, Shopify, or something similar, you can use the appropriate plugins to accept cryptocurrencies.
However, not all plugins are the same. When choosing a plugin, make sure that it is updated, has a good rating and a significant user base.

A couple of thoughts in the end

Integrating cryptocurrency payments into your online store may require additional work, but it is worth the time and effort.
By accepting cryptocurrency, you reduce the risk of returns, reduce commissions and expand your client base.
It will take quite a while before cryptocurrencies turn into the usual form of payment for online purchases. Be one of the first to catch the trend.

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