How Does Crypto Work?
Anyone can invest in cryptocurrency. To use it, a consumer must first purchase a crypto amount. Let’s use Bitcoin as an example. The current cost for 1 Bitcoin is about $11,000. If you accept crypto payments, a consumer can purchase a Bitcoin at that amount, and then sell a fraction of it when they want to make a purchase at your store. For example, if they had purchased one Bitcoin at $11,000 and wanted to use it to make a $100 purchase at your store, they would need to sell 1/110 of that coin to make their purchase with you.
Bitcoins or other cryptocurrencies are securely stored in a digital wallet that is protected with a secret key. Everyone has two keys, one public and the other private. The public key can be shared with others so they can send you Bitcoin, while the private key is what you would use to send a payment. If someone else discovers your private key, your Bitcoin are at risk of being stolen. Therefore, make sure your private key is safely stored at all times.
When a payment is made it is first encrypted, then broadcast to the cryptocurrency’s network and prepared to be added to the public ledger. Next, transactions are recorded on the public ledger using a process called “mining”. Anyone who uses a certain cryptocurrency (such as Bitcoin) can access the full ledger if they choose. The amounts paid for each transaction are public, but sender information is encrypted. Many transactions are posted at the same time and added in sequence to the ledger.
If this seems complicated, don’t worry. All of the work and any of the risk associated with a transaction like this is the responsibility of the consumer. Accepting crypto payments with Electronic Merchant Systems simply means you’re giving your customers an additional way to pay. We’ll take care of processing their payment and will fund you the money in cold hard cash.
Other than the obvious customer convenience factor, there are unique benefits to accepting crypto payments for your business.
- Forget About Fraud and Chargebacks
Crypto transactions are virtually fraud-proof and eliminate chargeback risks for merchants. Purchases made with cryptocurrency are exact and final (unless you choose to process a refund). You are in complete control of the cash you receive. Check out The Truth About Cryptocurrency Processing for more information.
- Encourage Innovation
Gain a competitive advantage by being one of the first to offer this alternative payment method and cater to digital wallet users.
- Speed Up the Process
Payments move more quickly, which helps you to avoid the traditional wait time associated with global transactions.
- Make International Payments Easy
Simplify international payments by eliminating foreign transaction fees and currency conversions.
Currently, we and our partners can help you to accept Bitcoin, Ethereum, and Litecoin payments. There are various options for how you can receive these payments, depending on your business type. These options include:
Create an invoice and email it to your customer.
- Face to Face
Accept a crypto payment directly from your customer’s digital wallet.
- Payment Button on Website
Add a button to your website for online crypto payments.
- Custom Integration for Your Website
This option requires some advanced coding and will allow you to accept crypto payments through your eCommerce website.