Thinking about being able to pay invoices through crypto without any issues? With the help of Bitcoin merchant accounts, it's entirely possible. This blog will serve as a guide to help you understand how crypto accounting software can help your business operations and unify your financial processes.

Acctual’s crypto accounting software can help streamline your crypto accounting processes and assist you in paying invoices through crypto without any issues.

Table of Contents

• What Is A Bitcoin Merchant Account?

• Benefits Of Bitcoin Merchant Accounts

• How To Start Accepting Bitcoin Payment

• How To Create A Bitcoin Merchant Account In 7 Steps

• Bitcoin And Crypto Payment Providers

• How To Determine The Best BTC Payment Solution

• Pay Your Bills In Crypto With Our Crypto Accounting Software Today － Book A Demo To Learn More

What Is A Bitcoin Merchant Account?

Bitcoin is proving to be more than just a trend. With a daily transaction value of $6 billion and around 300,000 transactions daily, Bitcoin is solidifying its place in digital assets. The total number of Bitcoin addresses has exceeded 20.5 million, showcasing the growing interest in this vibrant crypto. These figures highlight the essential role that Bitcoin is playing in the digital economy.

The rise of Bitcoin has led to an increasing number of businesses accepting Bitcoin payments. Bitcoin payments could open new revenue streams and attract a broader customer base.

Exploring the Bitcoin merchant account: A gateway to smooth Bitcoin payments

A Bitcoin merchant account functions similarly to traditional credit card processing services, allowing businesses to receive payments in Bitcoin. Whether you run a crypto exchange or an online store, having a Bitcoin merchant account can ease your payment process. These accounts serve as intermediaries between buyers and sellers, making transactions without the need for complex Bitcoin transactions.

Flexible Integration Options and Risk Management

Bitcoin payment processors offer solutions integrating various platforms and meeting different business needs. Whether you prefer direct payments, use a POS system, or rely on a shopping cart like Shopify, you can find a Bitcoin merchant account that aligns with your preferences. Customizable options make it easier for businesses to tailor their Bitcoin merchant accounts to suit their specific requirements.

Higher Fees for High-Risk Merchants

Bitcoin merchants are considered high-risk, leading to higher processing fees than other enterprises. Finding a payment processor that caters to high-risk merchants is important for smooth Bitcoin transactions. While the cost may be higher, the potential benefits of accepting Bitcoin payments outweigh the associated risks.

As Bitcoin continues to gain popularity, having a Bitcoin merchant account is vital in positioning your business. 

Benefits Of Bitcoin Merchant Accounts

Save Money on Credit Card Processing Fees

Credit card processing fees, usually between 3% and 4%, are a big expense for merchants. For every $10,000 a business owner earns, $300 goes straight to fees. It makes sense that owners are incentivized to find ways to cut these costs. Bitcoin transactions do not require a processing fee (though crypto payment gateway merchants will charge a 1% fee).

Transact with New and International Customers

Offering Bitcoin as a payment method will open your business to new customers. It will also make it easy to transact with international customers without paying steep international fees. The more payment options you have, the easier customers can pay you.

No Risk of Chargebacks or Disputes

Bitcoin works similarly to cash in the sense that all payment is final. As a merchant, you will not have to worry about paying steep chargeback fees (usually $25 per chargeback) or dealing with payment disputes.

Crypto for Effortless Invoice, Payment, and Workflow Management

Acctual is crypto accounting software for businesses and freelancers transacting in digital assets. It simplifies accounts payable and receivable, making it easy to pay bills and send invoices in crypto. Our flexible options let you pay in crypto while vendors receive fiat, receive crypto while clients pay in fiat, or receive fiat while clients pay in crypto. We also integrate with your accounting system, saving you time on month-end reconciliation.

Key features:

• Multi-level approvals for bills

• Fiat-to-crypto and crypto-to-fiat payments

• Built-in AML screening

• Crypto invoice links

• Automatic payment notifications

• With our smooth AP/AR process, automated bookkeeping, built-in internal controls, with flexible payment options, you can simplify your financial operations with us.

Book a call with our team today to learn how you can pay bills and send invoices in crypto with our crypto accounting software!

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How To Start Accepting Bitcoin Payment

Understand Bitcoin Regulations in Your Area

Before accepting Bitcoin payments in your business, have a conversation with an accountant to know the tax implications. Regulations concerning Bitcoin acceptance vary by state and country, potentially modifying how you include Bitcoin payments in your overall accounting systems.

Pick a Payment Gateway for Virtual Coins

Select an appropriate crypto payment gateway based on factors like:

• Security

• Supported digital assets

• Transaction fees

• Customer support

Following this, use the chosen gateway for your website.

Create a Merchant Account

After deciding on a gateway, create an account with it. When setting up a merchant account, consider relevant account features and functionalities.

Set Up Digital Wallets

Make sure you have a multi-crypto wallet to accept payments and convert them into your preferred fiat currency. Multi-currency wallets offer flexibility in selecting different virtual assets.

Enable Bitcoin Payments on Your Checkout Process

Setting up Bitcoin payments in your online store can be as simple as installing a plug-in or app on your e-commerce platform. If that option isn't available, you can integrate payments using HTML code from your wallet.

Integrate Bitcoin Payments With Your Accounting Software

Ensure your Bitcoin payments are recorded on the same platform used for the rest of your business transactions. You can easily achieve this by integrating Bitcoin transactions with your current accounting software.

Prepare for Crypto Volatility by Converting Bitcoin to Cash

Bitcoin prices are subject to constant fluctuations and volatility, so if you accept Bitcoin for your business, be prepared. You can plan for significant price variations or convert Bitcoin payments to cash immediately upon receipt to safeguard against potential price drops.

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How To Create A Bitcoin Merchant Account In 7 Steps

When it comes to opening a Bitcoin merchant account, one thing to keep in mind is that payment service providers have to be extra careful and need to check merchants closely when they apply. Be prepared for a lengthy verification process because money laundering is a huge problem.

KYC/AML Compliance and Securing a Merchant Account

You must supply the payment service provider with several documents and explain how you plan to fight money laundering and other criminal activity. Securing the right merchant account for a Bitcoin business might not be as easy as other merchant services because credit card processors are still new to crypto transactions. 

Finding one that satisfies all your requirements can take time, but it’s not impossible. As a high-risk merchant, you have to follow KYC and AML protocols. So, your Bitcoin platform has to meet certain requirements, including the:

• Company name at the footer

• A privacy policy page

• Deposit & refund policy page

Varied Application Processes and Requirements

Since each Bitcoin merchant accepts coins differently, merchant account application procedures can vary. Approvals differ depending on the industry type, the processor, and a merchant’s processing history. 

Here are some application requirements:

• Identity check

• Recent bank statements

• Six months of processing history, including returns, refunds, and chargebacks

• Valid ID of company owners and directors

Once all has been prepared, it’s time to apply for a Bitcoin merchant account. You simply apply online directly on the provider’s website. If all paperwork and documentation have been submitted with the application, all information submitted will be carefully examined. A decision can be made in as little as 24 hours or a few business days.

After you have received news of approval, you will be able to accept Bitcoin as a form of payment on your website.

Bitcoin And Crypto Payment Providers

Acctual

Acctual is crypto accounting software for businesses and freelancers transacting in digital assets. It simplifies accounts payable and receivable, making it easy to pay bills and send invoices in crypto. Our flexible options let you pay in crypto while vendors receive fiat, receive crypto while clients pay in fiat, or receive fiat while clients pay in crypto. We also integrate with your accounting system, saving you time on month-end reconciliation.

Key features:

• Multi-level approvals for bills

• Fiat-to-crypto and crypto-to-fiat payments

• Built-in AML screening

• Crypto invoice links

• Automatic payment notifications

• With our smooth AP/AR process, automated bookkeeping, built-in internal controls, with flexible payment options, you can simplify your financial operations with us.

Book a call with our team today to learn how you can pay bills and send invoices in crypto with our crypto accounting software!

BitPay

BitPay, an American firm, is a pioneer in crypto financial infrastructure. It started operating in 2011 and processed 270,830 BTC ($34 million) transactions in 2013. In 2018, the volume of transactions topped $1 billion. BitPay is a payment gateway specializing in settling payments through invoices issued by online merchants for products and services at a predetermined price. It charges a 1% transaction fee and facilitates the immediate translation of digital assets into fiat currencies.

Commerce by Coinbase

Coinbase Commerce is considered one of the most dependable and popular payment gateways for the e-commerce industry. It operates based on invoicing for fixed-price products and services. Coinbase Commerce has pursued collaborations with major e-commerce businesses and linked its services with platforms like:

• Shopify

• Magento

• OpenCart 

Coinbase Commerce states that withdrawing money from a merchant’s account on the platform is free; the only fee is the network fee charged by miners.

PayPal

PayPal makes it easy for customers to pay using their digital assets. PayPal will automatically convert crypto to U.S. dollars for merchants. This option is intended to offer additional payment options for customers while allowing the merchant to deal exclusively in fiat currency.

How To Determine The Best BTC Payment Solution

Pricing

Pricing is a factor when selecting a Bitcoin or crypto payment processor. Dealing fees can significantly impact a business's bottom line, especially for regular BTC transfers. Choosing a solution with competitive fees and reliable services is essential to balancing cost and quality.

Security

Security is important when dealing with crypto transactions. A reputable BTC payment solution should offer effective security measures, including:

• Industry-standard encryption protocols

• Two-factor authentication (2FA)

• Cold storage for funds

It should prioritize client privacy by adhering to strict policies to safeguard sensitive information.

Ease of Use

Another important factor to consider is the ease of use of a crypto payment processor. Look for a solution that offers:

• Optimized hosted pages

• Integrations with popular wallet

• Easy selection of various crypto options

A user-friendly interface can enhance the overall payment experience for the business and its customers.

Customer Support

Reliable customer support is essential when dealing with any payment processor. Choose a crypto payment provider that provides consistent and prompt customer support to address any issues or queries that may arise during transactions. Access to dedicated customer support can streamline the payment process and provide both businesses and customers peace of mind.

Supported Currencies

The blockchain payment system should support many popular digital assets, including Bitcoin (BTC) and Ethereum (ETH). It should support tokens aligned with a business's niche to cater to a broader consumer base. A diverse selection of supported currencies can attract a wider audience and facilitate smooth transactions across digital assets.

Pay Your Bills In Crypto With Our Crypto Accounting Software Today － Book A Demo To Learn More

Acctual is crypto accounting software for businesses and freelancers transacting in digital assets. It simplifies accounts payable and receivable, making it easy to pay bills and send invoices in crypto. Our flexible options let you pay in crypto while vendors receive fiat, receive crypto while clients pay in fiat, or receive fiat while clients pay in crypto. We also integrate with your accounting system, saving you time on month-end reconciliation.

Key features:

• Multi-level approvals for bills

• Fiat-to-crypto and crypto-to-fiat payments

• Built-in AML screening

• Crypto invoice links

• Automatic payment notifications

• With our smooth AP/AR process, automated bookkeeping, built-in internal controls, with flexible payment options, you can simplify your financial operations with us.

Book a call with our team today to learn how you can pay bills and send invoices in crypto with our crypto accounting software!

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