Best Bitcoin Payment Methods
By accepting bitcoin payments on your site you will open yourself up to new customers that prefer using cryptocurrencies.
Your business will benefit from adding a bitcoin payment method to your site as there are low transaction fees, transactions are streamline, time-efficient, sensitive information is protected and there is no risk of chargeback fraud. Adding bitcoin payment methods to your website does not have to be complicated; in fact after the setup it is practically like accepting regular payments.
Top Bitcoin Payment Processors
- Coinbase
Coinbase is one of the largest global bitcoin exchanges with endless resources so they can offer diverse features. Coinbase is US-based and abides by US regulations. Coinbase offers merchant services to businesses and individuals as a payment processor and an exchange. With Coinbase you can accept bitcoin payments on your website or at offline business directly into your Coinbase account then instantly convert your bitcoin into fiat. You can also email payment request invoices or use Coinbase’s custom integration with API. You can keep your bitcoin in your Coinbase account for free. To clear to your merchant bank account there is a fee of 1%. You can link your bank account or debit card to your Coinbase account and set up a withdrawal schedule that can even be daily. Coinbase is a good choice if you want to keep some or all of your holdings in bitcoin.
- BitPay
BitPay is one of the veteran bitcoin payment methods and has been around since 2011. BitPay can be integrated with over 40 ecommerce platforms and point-of-sale systems and is easy to setup. BitPay is primarily a payment processor and not an exchange however they connect with international digital currency exchanges so that you can convert your bitcoin into 8 fiat currencies to be deposited in 38 countries across the globe. One of the unique features of BitPay is you can set the frequency of withdrawal transactions as you wish. Bitpay is extremely secure thanks to the double authentication method. A 1% fee is paid when you withdraw your bitcoin. A 1% transaction fee is only levied after the free cap of $1000 of daily transactions and $10,000 annual transactions. With BitPay you can accept one-off payments, receive donations, set-up subscriptions and have them handle your invoicing and record-keeping of bitcoin payments.
- Coinify
Coinify is a bitcoin payment system based in Denmark and focused on the European market. Coinify gives your customers the option of paying in 15 different cryptocurrencies as well as local fiat currencies. Coinify boasts easy integration on various platforms; automatic payment and fraud-proof security. Some Coinify payouts incur a processing fee depending on the type of payout however sign-up, set-up are free and processing is generally free. You define the minimum bitcoin settlement amount and payouts are made on the next Wednesday after your account reaches the minimum balance. You can choose between payouts in bitcoin or fiat currencies.
- Manual Processing of Bitcoin Payments
You can manually process you bitcoin payments on a person-to-person level by generating a bitcoin address for each individual sale. By cutting out the middle-man you would have to provide your customers with clear instructions on how to make the payment you can receive bitcoin payments directly into your bitcoin wallet. You would then process the order manually once the transaction is confirmed. You can store the bitcoin in your wallet or withdrawn them and exchange your bitcoin into fiat currency using an exchange platform. With this bitcoin payment method you are responsible for the invoices; billing and providing the exact payment address manually to your customers. This is time consuming and only a suitable method of accepting bitcoin payments if your site has small sales volume or if you only rarely need to accept bitcoin.
There are not that many prebuilt options that don’t depend on a third party. The drawbacks involved in handling bitcoin transactions by yourself include having to a degree of technical knowledge; being vulnerable to the volatility of the bitcoin market and having to wait for confirmation on payments.
