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6 Reasons Your Business Should Be Accepting Bitcoin

· January 7, 2017 · 3:00 am

With over 80,000 companies already accepting Bitcoin payments as of 2014 and that number rapidly growing, business owners can no longer afford to ignore the world’s most popular decentralized currency. So let’s check out six reasons why accepting the virtual currency is a great idea.

[Note: This article was submitted by a guest author]


Multiple Reasons to Accept Bitcoin

Around the world, forward-thinking merchants from small shops to large corporations are joining the Bitcoin trend, with many of them doing so in order to improve cash flow by cutting costs and boosting their bottom line. But, is doing business in Bitcoin a worthwhile endeavor?

We’ve put together a list of some of the main benefits that you could experience from accepting Bitcoin payments.

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Lower Transaction Fees

If you’re hoping to reduce costs, accepting Bitcoin payments is definitely worth trying since per transaction fees for accepting this currency tend to be cheaper than those for conventional credit or debit cards. According to Adam White, Coinbase’s director of business development and strategy, this is the one main reason why many smaller businesses are joining the bitcoin payment trend. On average, small businesses tend to pay higher credit card fees than the bigger companies, since they lack the scale needed to negotiate the cheaper rates. Because of this, Bitcoin is often an easier and cheaper alternative.

Get Paid Quickly

Getting paid on time is important for businesses of all sizes, but no more so than for small businesses, which often rely on prompt invoice payments in order to maintain a positive cash flow and stay afloat. Along with using an invoice factoring company such as BlueVine to keep the payments coming in, accepting Bitcoin payments can actually make it easier for clients to make prompt payments.

Unlike credit card payments, which are often kept on hold for up to a week or more in case a chargeback is requested, Bitcoin payments tend to arrive in merchants’ bank accounts within just a couple of days, meaning that you could have access to your money a lot faster.

Avoid Chargebacks

One of the biggest advantages of Bitcoin for merchants is that payments made with this currency are final, meaning that there are no chargebacks or returns, unlike when dealing with regular credit and debit card payments. Credit card chargebacks occur when the cardholder disputes a purchase that they have made with the card, often due to reasons such as the item being defective, or perhaps they were a victim of credit card fraud. Either way, credit card chargebacks are both inconvenient and costly to merchants, with a fee set at around $5-15 each.

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Prevent Fraud

Bitcoin is gaining more and more popularity as an online currency as when a customer pays a company using Bitcoin, they are able to do so without divulging any personal details such as their name, address, date of birth, etc. Unlike when paying with a debit or credit card when this kind of personal data must be given in order for the transaction to be successfully processed, when paying with Bitcoin, customers can do so completely anonymously, giving them a practically fool-proof layer of identity protection that no other payment method can offer.

Accept International Payments

If your company has been putting off accepting international payments simply due to expensive cross-border transaction fees, accepting Bitcoin as a payment method could be the answer to your problem. Although going global is great for business, many small independent consultants and online retailers are unable to sell their services or products internationally due to a high cost that they are unable to afford. But, Bitcoin breaks down all these obstacles and borders with much lower transaction fees, allowing businesses to trade internationally and accept payments from anybody, in any part of the world, at just a click of a button. 

Customer Satisfaction

Last but not least, accepting Bitcoin as a payment method could lead to increased levels of client and customer satisfaction. With Bitcoin rapidly growing in popularity, it will be unsurprising if over the coming years, businesses will be expected to accept this currency as default. Offering your clients and customers the option to make payments with Bitcoin allows you to give them more choice, and therefore more control over the way they make payments and interact with your business. And, the added layer of protection from fraud and identity theft offered by Bitcoin can make this payment method a very attractive one to online customers who want to be as safe as possible.

If you’re not currently accepting Bitcoin as a payment method, there are many reasons to think about making and accepting transactions in this increasingly popular digital currency.

Will your business accept bitcoin? Why or why not? Let us know in the comments below!


Images courtesy of Shutterstock

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Shift4 Discusses EMV and Blockchain Cooperation in Payment Processing

Source: bitcoin

Bitcoin Debit Card

On Tuessday afternoon at the Money 20/20 conference in Las Vegas, Daniel Montellano, director of strategic business development at Shift4 Corporation spoke to the benefits of using the EMV standard (also known as “chip”) technology, as well as how blockchain technology will affect payment processors.

Also read: HYPR Announces $3M Funding Round for Biometric Security Products

Shift4, a leading pioneer in initially implementing tokenization technologies into the payments world, serving over 33,000 merchants, provides industry-level secure transaction environments.

EMV technology has arisen partially in response to the fact that businesses are continuing to take damage from chargebacks, thereby hurting consumers as a result. EMV has hit a point where retailers are forming together to get alter their credit card acceptance hardware and processes, in turn leaving behind industry players who ignore this crucial imperative as a result.

In 2006, Payment Card Industry (PCI) standards were created to help create a security blueprint for accepting credit card transactions. While data breaches remained in a relatively infancy stage, PCI implicated the storage, processing, and transmission of data due to increased malware risk.

Tokenization practices, which leverage point-to-point encryption within the EMV process, however, preserve underlying data. Therefore, when a data breach occurs on a tokenization-based network such as Shift4, tokens are breached, but not the underlying data itself. Additionally, tokenization security is not necessarily limited to credit cards alone, as gift cards or personally identifiable information (PII) can be subject to tokenization measures.

Corresponding services, in turn, need to purchase the proper hardware infrastructure to support the desired scalability and security of their services. As friendly fraud has increased three-fold since October 1st, chargebacks are becoming an increasingly relevant problem for credit card companies.

Shift4, however, claims to have robust EMV solutions that strengthen security on centralized credit card networks and record a unique token for each payment that can be reactively traced back to individuals as needed.

Shift4 Says That Blockchain Tech Can Work With Existing Systems

When discussing how the ongoing trends in payment processors can influence the blockchain community, Montellano referenced how blockchain tech is different than the role played by payment processors, as tokenization coins that secure data need to be re-used in the 1-to-1 blockchain identity model. Coupling existing solutions, however, can potentially enable the juxtaposing financial technologies of EMV and blockchain to compliment one another.

“Until we have common place what a blockchain actually is, it won’t disrupt tokenization,” Montellano remarked.

“If you look at what’s on top of people’s minds, you look at EMV and some of these emerging technologies there (such as blockchain), you have to ask where the focus is,” he continued.

While banks may be focusing on blockchain development, payment processors face a unique set of challenges that necessitate compliance around regulatory best-practices within their sector. Montellano said: “Understanding, awareness, and education around blockchain will need to increase first. . .at least in our world (payment processors), it’s not necessarily a common conversation.”

The quick adoption with EMV in the United States, however, demonstrates the potential for technology to be quickly disruptive once it reaches a proficient level of security and performance. A very similar pattern of implementation and growth likely exists for blockchain technology in the payments processing space.

What do you think of Shift4’s position on EMV and blockchains? Share your thoughts in the comments below!


Images courtesy of Groupon, Shift4.

The post Shift4 Discusses EMV and Blockchain Cooperation in Payment Processing appeared first on Bitcoinist.net.

Shift4 Discusses EMV and Blockchain Cooperation in Payment Processing

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