Cryptocurrency Acquiring: Embracing Digital Payments for E-commerce

This article will cover the procedure and specifics of how sellers receive funds from buyers online. You will learn what cryptocurrency and fiat acquiring are, and why the first option is better than the second one.

What is Internet Acquiring?

«Internet acquiring» refers to accepting payments in a non-cash format. Transactions are carried out using bank cards or contactless payment methods. As soon as the card data (card number, CVC code and expiration date) is received by the payment processor, acquiring takes place directly, followed by transaction processing. In standard acquiring, the user enters the card data in the payment form, after which it is transmitted to the system.

The following parties are involved in the process:

• seller of services or goods (in acquiring, this person is commonly referred to as a merchant);
• buyer;
• the bank which issued the card to the buyer;
• the acquiring bank, where the merchant has opened a settlement account;
• payment processing provider (this link in the chain is also called a processing center).

The acquiring bank sends a request through the payment provider to the issuing bank to ensure that the buyer is not a fraudster. If the issuer confirms the customer's legitimacy, the acquirer notifies the merchant and sends the funds from the buyer's card to the merchant's settlement account.

How Can You Connect to Online Acquiring?

Acquiring services can be provided by both the acquiring bank and payment systems, for example, Stripe. Banks have specialized departments for this purpose.

The process of Internet acquiring connection is usually the same regardless of the service you use:

1. You should choose a payment system and register on the website.
   
   
2. Provide general information about your business (website link, sphere of activity description, etc.).
   
   
3. Sign the contract (in this case, as a rule, you need registration as a sole proprietorship or LLC).
   
   
4. Conduct and test the payment system integration with the website.

Internet acquiring is usually subject to a fee. The amount of the commission depends on the range of connected services and the organization's turnover (generally ranging from 3 to 7%). In some cases, an additional fee is paid for the system's connection, and a subscription fee is charged for servicing the client and for the acquirer's access to its support service.

The Best Payment Providers

Stripe, PayPal and 2Checkout are recognized as the best international payment providers for e-commerce.

Stripe

This system is compatible with more than 100 national currencies and does not charge any conversion fees. It integrates instantly with all CMS. Acceptance and refunds are instantaneous, and withdrawals take up to a week for Stripe customers. Funds are withdrawn immediately to a linked bank account. This provider is known for its powerful fraud prevention tools and flexible payment process customization options.

You don't have to pay to connect Stripe to the website or register an account. The system charges 2.9% of each transaction volume +30 cents for processing it.

PayPal 

PayPal attracts users with security guarantees. In order to make a payment, the client does not have to disclose his bank card number to the seller. This service is one of the world's most popular payment systems for both businesses and individuals.

Nevertheless, the system has significant disadvantages:

• When opening a new account, the funds are blocked for 21 days. But if a business account deviates even slightly from the provider's policy, there is a possibility of blocking funds for six months.
  
  
• A tracking number must be generated and uploaded to Paypal for all orders.
  
  
• If a consumer who paid via PayPal wants to open a dispute, it will be easier to do so than someone who used a bank card. Plus, their chances of winning the dispute will be higher.

2Checkout

The name of this provider is often shortened to 2CO. It works with 87 national currencies. 2Checkout is one of the most common alternatives to PayPal and Stripe, but is inferior to them in several significant parameters:

• payment is carried out after redirection to 2checkout.com rather than on the seller's website;
  
  
• connection requests are processed over a long period of time, and there is a high risk of rejection;
  
  
• sellers' accounts are often blocked without giving any reasons for that and with no possibility to withdraw funds;
  
  
• the quality of support service is poor.

What is Cryptocurrency Acquiring and How Can You Work With It?

Accepting payments in cryptocurrency and processing them on a website, app or online store is referred to as «cryptocurrency acquiring». From the buyer's point of view, paying for goods or services with cryptocurrency is not very different from using fiat currencies. To make a payment you need to:

1. Select a product or service on the website, then choose a payment method with cryptocurrency.
   
   
2. After switching to the payment page, choose the most convenient cryptocurrency.
   
   
3. Transfer the selected cryptocurrency in the specified amount to the provided wallet address (you can also use a QR code), taking into account the commission of the blockchain network.

After transferring funds, the service will send a request to the blockchain and, after receiving several confirmations from the network, will automatically change the invoice status to «Paid». This usually takes 10-20 minutes.

Payment can be made with a variety of cryptocurrencies. The most popular are Bitcoin, Ethereum, Litecoin and Tether (USDT).

Advantages of Cryptocurrency Acquiring

Cryptocurrency payment systems offer users the following advantages: 

1. Payments can be accepted worldwide despite all sorts of restrictions.
   
   
2. It is much easier to connect crypto acquiring than bank card processing.
   
   
3. To accept crypto payments, registering a sole proprietorship or becoming a legal entity is most often unnecessary. This opportunity is available to individuals with citizenship in almost any country.
   
   
4. The commission for processing transactions in cryptocurrency is much lower.
   
   
5. There are no centralized controls in the blockchain. No one is authorized to block transactions due to suspected fraud, as well as to open disputes about already completed financial transactions. Payment risks are minimized.
   
   
6. Information within the blockchain is stored in encrypted form. It cannot be stolen, copied or discreetly rewritten.

Since cryptocurrency has no tangible form, it is not connected to the standard currency or banking system and is not under anyone's control, including the control of the state. This has both advantages and disadvantages. For example, intermediaries like banks are not needed for the transaction, so there is no commission. Still, you can't get your money back if you accidentally send it to the wrong user.

You can learn more in our article «How to Increase Payment Conversion on the Website».

Popular Cryptocurrency Acquiring Services for Business

Many services offer cryptocurrency acquiring. Let's take a closer look at three popular options: BitPay, CoinPayments and CryptoCloud.

BitPay

This service was launched in 2011, when Bitcoin started gaining popularity. Now BitPay supports more than 10 coins and almost all existing crypto wallets. Using this service, the conversion of crypto into fiat is convenient. The transaction fee is only 1% (for high-risk businesses, it can be higher). The provider has no concealed charges, setup fees, or monthly minimums.

To start accepting crypto payments, you need to register a business account, verify it, open wallets in the selected cryptocurrencies and specify a bank account for withdrawing income.

CoinPayments

This service can be used as a cryptocurrency gateway and wallet. It accepts over 170 coins and allows you to exchange them directly in your personal account. Payments will come to the wallet you specify automatically. The commission for transactions is 1%, for fiat — from 0.5%. CoinPayments has a convenient mobile application. The provider is compatible with many e-commerce plugins.

Basic registration requires only an e-mail address. To access advanced functionality, you will need to go through the KYC procedure.

CryptoCloud

It is suitable for merchants, from bloggers to large online stores. You can accept payments with CryptoCloud in Bitcoin, Ethereum, Litecoin, Tether and other cryptocurrencies. The personal account and payment page interface is highly convenient and clear. Commissions for processing transactions start from 0.4%.

Users appreciate CryptoCloud for its easy integration, ability to quickly generate payment links, and high-quality tech support. To connect, all you need to do is confirm your e-mail address. Multi-level verification will not be required.

Read a detailed review of the CryptoCloud service in the article.

How to Carry Out Integration to Crypto Acquiring?

Accepting cryptocurrency payments on a website can be done with the help of different services. The integration algorithm of each of them is individual. Below, we will consider the process of connecting to the CryptoCloud crypto processing solution on the website. 

To connect to the service, you need to follow these steps: 

1. Create an account on CryptoCloud. You won't have to share your confidential data — just enter your e-mail address.
   
   
2. Fill in the information about your business in the CryptoCloud personal account. To connect your website to the payment system, you will need to specify a link to your website, a link to the successful payment page and some additional information.
   
   
3. Decide on the method of connection. You can use a structured API, a ready module for popular CMS (PrestaShop, Drupal, Woocommerce, Opencart, etc.), as well as a standard HTML widget.

Fast and easy integration is one of many advantages of CryptoCloud. Choosing this crypto processing makes sense also for the following reasons:

1. Low transaction processing fees;
   
   
2. Easy project moderation;
   
   
3. Merchants are able to pass on payment of service and blockchain network fees to the buyer;
   
   
4. Ability to create invoices in different currencies without a website;
   
   
5. Adaptive and convenient interface of personal account;
   
   
6. Intuitive, multi-lingual payment pages;
   
   
7. All data stored inside the system is encrypted, providing reliable protection from DDOS-attacks;
   
   
8. Prompt technical support.

Connect CryptoCloud Crypto Acquiring

Accepting payments with cryptocurrencies is beneficial for both sellers and buyers. It is fast, safe and as easy as settlements in the fiat currencies.

To start accepting cryptocurrency payments, you need to connect crypto processing. Of all the systems available today, one of the best options for businesses is CryptoCloud. It charges minimal commissions, has an intuitive interface and does not require multiple verifications.