What You Should Know About Cryptocurrency
With cryptocurrency processing, you can offer your customers a new way to pay.
Have you heard the term “cryptocurrency”, but aren’t sure if it’s a good thing or a bad thing? Maybe you’re afraid to ask at this point. Well, take it from us - you’re not alone.
There are many common misconceptions about the security and use of cryptocurrency. In this post, we’ll explore the facts of accepting payments securely with cryptocurrency processing.
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Crypto Myths, Debunked
Here are three of the most common assumptions about cryptocurrency, which are completely false.
1. MYTH: Cryptocurrency is for criminals
Big retailers such as Lowes, Whole Foods, Nordstrom, and more all accept cryptocurrency as a form of payment. As a digital currency, crypto requires less handling as it moves from point A to B.
That means it is easier and cheaper to move than currency received through traditional payment methods. Crypto is designed for the new ways we complete transactions – online, via mobile, and in eCommerce marketplaces.
This is especially helpful in today’s economy which relies more heavily on international transactions.
2. MYTH: Cryptocurrency is a bad investment
Some believe that cryptocurrency is unstable or not secure, and therefore a poor investment. We disagree!
Accepting crypto is very secure for the merchant, and the technology that supports crypto, blockchain, is incredibly valuable. In fact, big retailers like Walmart are already using blockchain-powered supply chains to monitor product handling and quality.
Let’s say a Walmart customer wanted to know where exactly their coffee beans came from. They could follow the blockchain transactional records and see where their coffee originated, and the path it took to reach their hands. Retailers can also use this technology to track products from production to storefront.
3. MYTH: Blockchain and Bitcoin are synonymous.
They both start with the letter ‘B’, but that’s about all these two words have in common.
Blockchain, as mentioned above, is the technology that supports cryptocurrencies. It allows crypto transactions to be recorded on a distributed ledger throughout the network.
Bitcoin, on the other hand, is a form of cryptocurrency. It can be exchanged directly between two people or from a person to a merchant, without passing through a bank or other third party.
Simple, Secure Payment Processing
Accepting cryptocurrency eliminates the “middle man” associated with credit card, debit card, check, or international payment transactions.
That means you’ll save on fees typically charged by credit card companies as more and more customers choose to pay with crypto. Plus, international transactions can be completed quickly, seamlessly, and without risk of chargeback fraud.
Chargeback fraud is a serious problem for merchants everywhere. It is estimated that chargebacks will cost merchants roughly $25 billion a year by 2020. Accepting cryptocurrency can help to reduce that astronomical dollar figure. Allow us to explain.
The chargeback process is designed to protect the consumer from fraudulent purchases made on their credit card or from merchants who sell sub-par products. Unfortunately, some consumers abuse this process and claim legitimate purchases were fraudulent, deliberately stealing from merchants. When a customer uses a credit card to make a purchase, there is always risk of a chargeback.
However, if the customer makes a crypto payment, there is no chargeback risk. Cryptocurrency is directly person-to-person, which means there is no third party company for a customer to file a claim with.
If they decide to return an item, they’ll have to request that return directly from you. It is then up to you to decide whether to process the refund. With cryptocurrency processing, you have complete control over your profits.
The myth that cryptocurrency is not secure is just that, a myth. As long as you have a trusted partner to process your crypto payments, you can enjoy a reliable payment solution with less risk of chargeback fraud.