Creative news collection

What Crypto Payments Service provider should you Choose? Payments Provider

Nov 25, 2022

We'll assist you in making one of the crucial decisions to make, as well as provide an overview of the features available from different types of options. We'll also help you understand some of the jargon we'll employ as we go through.

The two distinct approaches to cryptocurrency payments

If you want to utilize cryptocurrency on your website, there are two options generally available:

  1. Cryptolite: In the event that you'd love to take payments in cryptocurrency howeveryou're not looking in anything else, then this is an ideal solution. Consider options that ensure that you receive an appropriate amount of money to your bank account as fast and affordably as possible.
  2. Additional Information: This category can be complicated in a short duration. If you wish to preserve any or all of your cryptocurrency as a digital currency, permit a wider range of currencies, or offer NFTs for sale, you'll require higher-end options.

There is a choice of custodial or non-custodial crypto payments provider

If you decide to accept cryptocurrency on your website One of the most important decisions you'll be faced with is whether you'll choose a custodial or non-custodial payments provider.

It's a good idea to have a choice of "crypto lightweight" or "something different."

Custodial crypto payments providers

Many merchants opt for this method of payment because it gives assurance and comfortable user experience. You will receive support accessible, you can trust the conditions of service and can take advantage of more capabilities (such the automatic settlement of your bank) since the service provider handles your accounts in crypto in your behalf.

If you want to pursue "crypto light," cryptocurrency payments custodial service providers are your only alternative.

The benefits of custodial crypto services include:

  • A fully-integrated extension
  • Accepting the use of any cryptocurrency or other from customers
  • Directly into your bank account using fiat money.
  • Log in to your account using email and password
  • Support Services
  • Costs of transactions are reduced and you can be assured against chargebacks and refunds

Payment providers for crypto that are not custodial

If you're an expert in crypto but are seeking to gain access to more advanced features, you might want look for a service that is not custodial. With non-custodial solutions you'll be in complete authority and control of your security as well as the management of your cryptocurrency accounts. It's not something you should make at a leisurely pace. If you're a store owner with the right qualifications, it is possible to unlock the full possibilities of cryptocurrency.

Advantages of using a non-custodial cryptocurrency payment provider

  • Control and access to your cryptocurrency immediately following you've accepted it - there's no waiting for a settlement from an outside individual.
  • Less restrictions on the terms and conditions. Nobody can cancel or cancel your account service.
  • The actions you take are only subject to the law in force as well as your own capabilities. You are able to sell everything you'd like to and manage your crypto currency according to your own preferences.
  • The sole responsibility lies with your account's security . There are no third-party data breaches, or hacks could affect your bank account.

Crypto vocab check

Fiat Currency: Currency that is issued by the government (e.g. USD, EUR, GBP).

The term "cryptocurrency" means The currency is secured by the cryptography principles (e.g. BTC, ETH, DOGE).

Stablecoin A type of cryptocurrency that is tied to a fiat currency. (e.g. USDC where 1 USDC equals 1. USD).

The Crypto Payment provider offers

There are a variety of aspects that you should consider when picking between custodial and non-custodial service.

Below, you'll find an exhaustive list of choices and considerations to illustrate how different choices are. If you're using this table, be sure to take note that the table is an overview of what's feasible. There aren't any providers that offer every possible option.

Features Features Custodial Non-custodial
Agreement with a third person Sign up for an offer from a business which is subject to its conditions of service. Y N
Account recovery
If you're not able to access your account, you may get a password reset request or recovery of your account through the service supplier. 		Y N
Support
You will be able to establish a connection and get support from the provider. 		Y N
Automatic exchange stablecoin or other crypto
It is possible to opt for transforming your crypto into another cryptocurrency or stablecoin. 		Y Y
Automatic exchange for fiat currency
You can choose to have crypto automatically converted to fiat. Note that calculations of conversion rates, exchange rate and other rates might vary depending on the exchange partner. 		Y N
Automatic transfer of funds to the bank you have with
You can choose to pay your money directly to your bank. 		Y N
You will receive exact currency in fiat
This helps avoid exposure to volatility in the price of crypto. This non-custodial option can decrease, but not remove volatility, by deciding to accept only stable coins. 		Y N
Special features specific to retailers
A few providers have tools that can make it easier for merchants to save time and energy. These include things like risk profiling (to help ensure that you don't receive cash from criminals) as well as protection from overpayment and underpayment along with email invoices. 		Y N
Transaction finalization protection
Blockchains need 'blocks' be created for the purpose of completing transactions. The greater the number of blocks that are created after an exact transaction, the safer the transaction. It helps avoid the danger of sending out products that are then able to see the change in the transaction. 		Y N
Insurance for funds
Both custodial and non-custodial solutions carry a risk of hacking. Insuring funds is a way to protect users who use a custodial service. But, the protection offered by insurance firms differs and businesses should thoroughly research insurers' insurance and refund policy. 		Y N
Y Y
Supports subscriptions/recurring payments
Customers who make payments using cryptocurrency have to authorize every transaction. So, recurring payments will not be an option. However, certain custodial services offer the ability to generate and automatically send invoices regularly. 		N N
Transaction fees that are low
Both custodial and non-custodial companies typically charge significantly less transaction fees (1-1.5 percent) than traditional companies (2-3.5 percent).). 		Y Y
Exposition of crypto networks (e.g. gas) fees
Direct cryptocurrency transactions incur their own network fees and, with Ethereum becoming the most well-known one. They are also referred to as 'gas' charges. The payment processor may be able to absorb these fees; some pass these fees on to the consumer. 		N Y
sole control
Only you are the one who has the power to authorize the transactions that are incoming to your account. Nobody else can approve transactions without having access to your account's key. 		N Y
Accept any cryptocurrency over any network
Payment processors that accept cryptocurrency support different varieties of crypto networks and coins. Custodial services are only limited to the currencies they accept. Alternative options that aren't custodial can provide a wider range of possibilities. 		N Y
integration
It's one thing receiving the money, however it's quite another to know which customer paid for the transaction and the value of the transaction. Our partners offer comprehensive integrations, ranging from setup to the day-to-day administration. 		Y Y

Review your options and choose the most suitable cryptocurrency payment option to operate your business.

Cryptocurrency solutions can seem confusing It is important to provide solutions that will best cater to the needs of your customers and requirements. Make sure you go through the pros and cons of the two types of payment providers that use crypto, and take note of which of them is the right fit for your particular firm.

This post was posted on here