Cryptocurrency processing: what it is and how it works

Cryptocurrency has long been a part of everyday life. Integrating cryptocurrency payments into traditional businesses makes goods and services more accessible, expanding the traditional market. Now we'll look at how to add support for cryptocurrency payments and what solutions to use for this. 

Cryptoprocessing is the processing of cryptocurrency payments provided by special services and providers. Such platforms enable entrepreneurs to accept payment in crypto and then convert it into fiat or other coins. This allows the number of payment methods to expand. How does cryptocurrency processing work? Let's understand.

Advantages of crypto-payments

Before we break down in more detail what cryptocurrency processing is, let's take a look at its main benefits:

1. Lack of return payments. When it comes to classic payment methods, chargebacks are a fairly common problem. They occur if the buyer disputes the transaction and demands a refund. But all crypto payments are irreversible, so the risk of chargebacks is reduced.
2. Low fees. Classic payment methods usually take place through intermediaries, which in turn leads to additional fees. And one of the main advantages of accepting cryptocurrency is the reduced fees. This will give sellers the opportunity to save money.
3. Simple implementation. Processing cryptocurrency payments into existing systems is quite simple, thanks to the availability of payment gateway solutions and APIs that are easy to use. You won't need any additional knowledge to accept crypto.
4. Protection against hacking. All transactions related to crypto are protected from possible interference of fraudsters. Thanks to this, your funds will be safe.
5. Secure Funding. Crypto payments offer sellers reliable funding, so you can access funds quickly and securely.
6. Fast receipt of money. You can receive your money instantly and without delays, unlike transactions made by classical methods, where it often takes a long time to process payments.

Disadvantages of cryptocurrency processing

Despite all the advantages, cryptoprocessing has disadvantages. Among them:

1. Volatility. Crypto price volatility poses a risk to sellers due to fluctuations in the value of payments received.
2. Technical challenges. In order to integrate cryptocurrency payment processing, you need technical knowledge.
3. Regulatory uncertainty. The regulatory environment is constantly changing. This can lead to difficulties in complying with legal regulations.
4. No consumer protection. Crypto offers often limited consumer protection, which can cause problems with refunds and dispute resolution in the case of fraudulent transactions.
5. Energy consumption. Bitcoin and some other coins have high energy consumption, which raises environmental concerns.

Types of cryptoprocessing?

The following types of cryptoprocessing are distinguished: 

1. Crypto-fiat. In this case, the user receives fiat money to his account after conversion. The commission is often 1 per cent. But there may be regulatory, currency and banking risks. This option is more profitable but complicated.
2. Cryptocrypto. Buyers pay with crypto, and merchants receive crypto. The service earns a little, as the transaction fee is no more than 0.5%.

How do I accept payments?

The cryptocurrency process is very simple if you have some knowledge. Merchants can accept crypto by integrating with a payment gateway. The latter supports crypto payment processing. Gateways act as intermediaries, which makes it much easier to convert cryptocurrency payments into traditional fiat currency.

There is also an alternative way of accepting payments in crypto - placing a checkout form. In this way, merchants can embed a secure form on their website. This form will allow customers to conduct transactions directly, while using the cryptocurrency they desire.

Connect cryptocurrency processing with BoxExchanger

BoxExchanger customers can connect cryptocurrency processing via API. It works in a very simple way:

1. We connect the exchanger API to the payment forms on your client's business website.
2. We determine which target currency to assign to the customer and set specific currency directions for accepting payments. 
3. Customers will be able to pay for goods and services in any currencies from those offered on the site.
4. The exchanger can accept payments in different currencies, then translates the currency into the target currency and sends it to the customer.

There are potential cryptoprocessing clients everywhere. They can get paid in the right currency and pay you interest. The more sales your customers have, the bigger your profit.

A payment aggregator for business is a unique feature that is available for all BoxExchanger users. Connect via API to the client's site for payment processing and receive an additional regular flow of transactions. To learn more about this service, fill in the feedback form on our website.