The Bitcoin has come to be accepted as a possible future secure currency of the Internet. If you are cautious, you can seamlessly send or get payments in Bitcoin without having to disclose your private financial details like information linked to your wallet or Bitcoin account. With the Bitcoin having tasted success other crypto coins like Ripple and Litecoin are steadily gaining ground. So, Bitcoin payment services are now making it easy for you to pay BTC for a cuppa at the neighborhood café or a top-of-the-line smartphone at a high-end electronics store.
Bitcoin payment services will let businesses or merchants get payments as Bitcoins from people in exchange for the services and goods delivered or sold. So, a Bitcoin payment service almost works like any regular debit or credit card payment service. It will ensure that records and transfers of payments take place smoothly and credentials are authenticated. So, Bitcoin payment services act like intermediaries between the receiver and payer for processing BTC payments and records transactions made on the blockchain. Using such payment services merchants can take payments both at physical locations or online without the seller or buyer having to worry about the complexities involved in the transaction process.
Working of Bitcoin payment services:
All such services provide multiple platforms for merchants to accept BTC payments. For instance, you can expect integration with ecommerce mediums like Magento and Shopify, for direct payments integrations with accounting/billing solutions such as Invoice Ninja or Host Bill, and also integration for payments through point-of-sale systems inside stores like DC POS and Soft Touch. These Bitcoin payment services will also offer solutions for taking donations in Bitcoins. You can also use bitcoin up for donations. So, you can expect integration with donors like Targeted Victory or Nation Builder. Even app developers can find code and functions libraries in their Android and iOS SDK and in different programming languages like PHP, Perl, and Java for accepting BTC payments through apps.
When you register for a Bitcoin payment service, you can start receiving payments from clients all over the world and via all types of transaction mediums. To make this happen, there are some steps to be followed as explained below:
- The customer has to first choose to make BTC payments at the checkout point, whether online, through an app, or in-store.
- The customer will then make a payment corresponding to the exchange rate that is applicable when the transaction happens.
- The payment service will then convert the Bitcoins received instantly into the currency you have selected so that there is risk of volatility involved. You can even choose to receive the BTC in your wallet rather than exchange it for fiat currency.
- Once converted, this money will be credited to your account.
- The payment service will provide the details needed for transactions to happen securely. These transactions are then sent for authentication and recording on the blockchain. The miners are responsible for verifying and adding the transaction to the blockchain. In return, they get a fee for their contributions.
The greatest advantage of Bitcoin payment services compared to regular credit card payment services is the cheaper transaction costs. For instance, a service like BitPay will simply charge about 1% flat fee to merchants while it is 3% where credit card payment services are concerned. Moreover, Bitcoin payment services operate without borders and enable seamless transfer of BTC of any amount.