Accepting bank cards or processing crypto-payments: which one is better for business?

Bank and Crypto Acquiring: What Online Payment Option to Choose

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E-commerce is on the rise: according to British research company GWI, 58.4% of working-age Internet users make online purchases every week. A convenient payment process is an important factor in the success of an e-commerce business.

In this article, we will tell you about the differences between bank and cryptocurrency acquiring, the advantages of paying with digital assets, and how to accept cryptocurrency payments using the CryptoCloud service.

What Is Bank Card Processing 

Bank card processing is the transaction execution when making an electronic payment. The system checks the card details and the required amount on the account and then confirms or rejects the payment. 

The process involves several participants: 

  • the buyer, who owns the card;
  • the merchant, who receives the payment;
  • issuer — the bank that issued the card to the buyer;
  • acquirer — the bank that accepts the payment;
  • processing service — an organization that processes the transaction;
  • payment system. 

Connecting bank acquiring to a company's website or online store is necessary to accept payments. For integration, the entrepreneur must sign a contract with the payment system and confirm that the website complies with security rules. 

The requirements of most services include the option of secure payments, HTTPS protocol, privacy policy, return and delivery conditions. Also, the entrepreneur must provide company details and confirm their identity. The specific list of requirements depends on the payment system. 

Connecting bank acquiring to the website of a company or online store is necessary to accept payments.

Transaction is performed in several steps: 

  1. After the buyer pays on the checkout page, the processing center receives information about the transaction. 

  2. The service performs verification of the transaction. If they suspect fraud, the payment may be declined. If the transaction is safe, information about it is passed to the acquirer.
  3. The acquirer requests information from the issuer about the availability of the required amount on the buyer's account. 

  4. The issuer reports the results of the customer's balance check, confirming them with a unique code. 

  5. Depending on the results of the check, the processing center confirms or rejects the payment. 

The whole process takes a few seconds. In case of successful payment, the buyer receives a corresponding notification and access to the product or service.

Cryptocurrency Processing: What Is It? 

A cryptocurrency payment gateway is a system that processes cryptocurrency payments. The gateway acts as an intermediary between the merchant and the client. 

The use of processing helps to automate the acceptance of cryptocurrency payments. Without crypto acquiring, the merchant has to manually convert the cost of goods into the cryptocurrency chosen by the user, send the address of his wallet for payment in the right network, check the payment information, and confirm the payment. 

A cryptocurrency payment gateway is a system that processes cryptocurrency payments.

Payment via crypto acquiring is performed as follows: 

  1. The customer adds a product or service on the website to the cart and goes to the checkout page, where they select the cryptocurrency payment method. 

  2. The system converts the cost of the product/service into the cryptocurrency chosen by the customer. After that, the amount is displayed, as well as the wallet address and QR code for payment. 

  3. After the client makes the payment, the system sends a request to the blockchain and checks the status of the transaction. Once the payment is confirmed, the user receives a corresponding notification and access to the purchased product or service. 

Depending on the type of acquiring, the merchant can receive the payment in fiat money or cryptocurrency. Processors of the «crypto-crypto» transaction type have lower fees because they do not use the banking system that helps business to cut costs. Crypto-fiat acquiring users pay higher fees and face banking, regulatory and currency risks, but receive payment immediately in fiat money. 

Along with processing transactions, crypto processing services can generate reports on payments, collect statistics, and register buyer data. In the personal account, the merchant can buy and exchange cryptocurrency, convert it into fiat money, and withdraw it to their wallet. The exact list of functions, as well as the list of supported cryptocurrencies, depends on the specific acquiring service. 

Промоблок payments-crypto

Accepting Payments in Cryptocurrency: Advantages for Merchants 

The implementation of accepting payments in cryptocurrency has several advantages for the entrepreneur: 

  • Low commission. Bank commission can be a significant part of the cost of international transfers. It can be as much as 4-5% of each transaction. Crypto acquiring commissions are much lower — usually around 1%. 

  • The ability to accept international payments without restrictions. Cryptocurrency payments are practically immune to sanctions. It is possible to accept such payments from anywhere in the world. 

  • Cryptocurrency payments are not controlled by government agencies or banks. Blocking or freezing of the merchant's account is unlikely. 

  • Cryptocurrency transactions are irreversible. This excludes chargebacks and fraudulent transactions. 

  • When paying with cryptocurrency, information about both sides of the transaction is encrypted thanks to blockchain technology. This guarantees the security of personal data. 

  • The possibility of cryptocurrency payment improves the company's image for customers, creates an image of a modern company, and increases payment conversion. 

  • Connecting crypto acquiring is easier than a regular payment gateway. It does not require going through a multi-step verification procedure. 

You can read about companies that already accept cryptocurrency payments in our article.

Cryptocurrency payments are practically independent of sanctions. It is possible to accept such payments from anywhere in the world.

Crypto Processing CryptoCloud

CryptoCloud is a cryptocurrency payment gateway for a company website, online store or Telegram-bot. The service provides payment acceptance in USDT, BTC, ETH, LTC and other cryptocurrencies, the list of which keeps growing. 

CryptoCloud crypto processing offers merchants the following features: 

  • payment page in 7 languages, adapted for any device;
  • ability to pass on payment of service and blockchain network fees to the buyer;
  • instant invoicing;
  • low fees from 0,4%;
  • detailed statistics, payment history, report generation;
  • real-time notifications of completed transactions. 
Learn how merchants can use CryptoCloud to accept payments in our article.

CryptoCloud provides payment acceptance in USDT, BTC, ETH, LTC and other cryptocurrencies.

It takes a few minutes to connect the service. Integration into a website can be done via API, as well as using a ready-made module for a CMS website or a generic HTML widget. You can learn more about the features in the article «CryptoCloud crypto payment gateway: a full review».

Processing Bank Cards or Cryptocurrencies: What to Choose for Your Business

Accepting bank card payments remains the most popular way to receive funds. Crypto processing can be an additional payment option for your customers. 

Crypto processing CryptoCloud can help to process transactions from abroad. You can read about its features and functionality in your personal account. If you still have any questions about connection and operation of the service, please go to the FAQ or contact our specialists in Telegram messenger. 

Промоблок processing-crypto

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