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How do I know the most effective way to choose a crypto Payments Service Provider

Nov 25, 2022

We'll guide you through the most crucial choices you can make as well as give you some insight into the options which are offered by many different solutions. Also, we'll assist you in understanding certain terms we'll employ during the course of our work.

The two ways of cryptocurrency transactions

If you're planning to accept cryptocurrency on your site, then you usually will have two choices

  1. Cryptolite: If you'd like to make payments with crypto, but you're not interested in the aspect of it, then this program is perfect for those who aren't. Look into options that ensure that you will receive the right amount of cash to your account in a timely manner and efficiently as you possibly can.
  2. Further: This category can become complicated within a brief period of. If you'd like to keep any or all your cryptocurrency and accept a wider variety of currencies or trade NFTs for sale, then you'll require more costly options.

There is a choice of custodial or non-custodial crypto payment service

If you're considering accepting crypto-based payment on your website, the first option you'll have to take is deciding if you'd like to choose a custodial or not-custodial service.

It's great to select a few "crypto mild" or "something different."

Providers of custodial crypto payment

Many merchants use this service offers security in addition to a experience which is well-respected by customers. The support you receive is along with terms of service, and you'll also have access to other alternatives (such for automated settlements to your bank) because your service provider manages the crypto accounts for you.

If you are looking to go for "crypto light," custodial crypto payments service providers are your only option.

The advantages from Custodial Crypto Payments provider include:

  • Fully extended and integrated
  • Accepting one or more crypto currencies from customers
  • Directly to your bank account Fiat currency
  • Access to your account via email and password
  • Support Services
  • The lowest cost for transactions and the assurance against reimbursements and chargebacks

The crypto payment service providers aren't custodial providers

If you're a pro at crypto but would like to gain access to more advanced capabilities, it's possible to look into a non-custodial alternative. Alternatives to custodial can provide you with full power and control over the security and control of your accounts in crypto. This isn't something to do with no thought. However, for store owners who are qualified it unlocks all the potential of cryptocurrency.

Benefits of a custodial company for crypto-payments:

  • You'll be able to manage and access your crypto as soon as you receive it - there's no reason to delay waiting to be able to receive your payment through an intermediary.
  • No restrictions on the terms and terms. Nobody can cancel or cancel the service you have on your account.
  • These actions are dependent on the laws currently in effect and to the capabilities of you personally. It's possible to offer whatever you want, and manage your cryptocurrency in the way you'd like.
  • It is the sole obligation of the security of your account - no hacker or data breach from third parties can impact your account funds.

Crypto vocab check

Fiat Currency: The currency issued by a state (e.g. USD, EUR, GBP).

The term "cryptocurrency" refers to cryptocurrency. The currency is protected using the concepts of cryptography (e.g. BTC, ETH, DOGE).

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

Features of a crypto payment service provider

There are many options to consider when selecting an custodial or other non-custodial options.

The following is a complete listing of characteristics and features to help you comprehend what the difference is between different alternatives. If you're using this list, be aware that the list is a general overview of what's likely to be included. Some partners may not have all features.

Features Custodial Non-custodial
Contract that is in conjunction with a third-party Sign up for the services offered by a business subject to the conditions of the service. Y N
Account recovery If you're not able to access your account, you could receive a request for a reset of your password or access recovery through the service provider. Y N
Support
The user will have access and will receive assistance by the company. 		Y N
Automatic exchange of stablecoins any other cryptocurrency
It is possible to transform your cryptocurrency into stablecoin or another cryptocurrency. 		Y Y
Automatic exchange of currencies that are fiat
There is a possibility to have your crypto convert automatically to fiat. It is important to note that rate and exchange rates could differ depending on the company you select to collaborate with. 		Y N
Automatic Settlement to your Bank
You can choose to transfer the funds into your account automatically. 		Y N
Find the exact value of fiat currency
It will help you avoid being subject to the fluctuation of prices of cryptocurrency. Non-custodial solutions can reduce however they cannot eliminate the volatility in cryptocurrency by permitting stablecoins. 		Y N
Specific characteristics for retail stores
Certain companies offer features that make it easier for retailers to cut down on time and energy. These include things like risk profiling (to assure that your business won't receive funds from bad actors) and protection against excessive or inadequate, together with invoice emails. 		Y N
Transaction finalization protection
Blocks are generated to finish transactions. The greater the number of blocks created by a particular method, the more secure the transaction. Protection helps avoid sending out goods and then having an unintended reverse transaction. 		Y N
The risk of insurance for funds
Both the custodial and other options for custodial are vulnerable to hacking. Insurers on funds provide security for customers who use a custodial service. It is not equal for every customer and it's important that merchants examine their insurance provider's policies as well as reimbursement guidelines. 		Y N
Y Y
Supports subscriptions/recurring payments
People who pay using cryptocurrency need to verify each transaction. Therefore, recurring payments aren't an option. However, some custodial companies provide services that allow you to design and automatically mail invoices in accordance with a specific schedule. 		N N
Costs of transactions are very low
Non-custodial and custodial payment businesses generally have lower fees for the transactions (1-1.5 percent) as compared to traditional payment businesses (2-3.5 percentage). 		Y Y
Exposition to crypto-related networks (e.g. gas) fees
Direct cryptocurrency transactions offer advantages of having their own network costs for use with Ethereum also called gas fees. The payment processor may take on the charges, while some transfer the fees. 		N Y
Sole control
Only you are the only person that can authorize transactions from your account. Only you can authorize transactions without having access to your private account key. 		N Y
Accept all currencies on any network
Payment processors that handle cryptocurrency transactions can provide a wide range of currency and networks for cryptocurrency. Custodial services can only be used in the currency they support. Alternative solutions can give you more choices. 		N Y
integration
When you receive a certain amount however, the next step is to identify which client was the person who actually bought the product and to figure out which purchase was made. Our partners have solid integrations for all aspects from creating to managing daily. 		Y Y

Consider your options and decide on the ideal cryptocurrency-based payment service to manage your business

The choices for cryptocurrency could be confusing , but it's well important to design solutions that best match to the needs of your clients and needs. Be sure to go over the benefits and drawbacks between the two kinds of payment methods that are based on cryptocurrency, and take note of which one is the most suitable for your company.

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