When a company decides to start taking payments in cryptocurrency, there are numerous details to consider, including which cryptocurrencies to accept, how to handle pricing, potential updates to the site terms, and what type of platform technologies are required.
One of the details business owners need to determine is whether they need a separate account to handle crypto payments.
We’ll discuss how you can open a crypto account for your business, what that entails, and how the right platforms can help you integrate crypto payments with ease.
Do I Need a Crypto Account?
If you plan to accept payments for goods or services in cryptocurrency, you need a way to process those transactions and deposit the payments to your crypto wallet. Additionally, most people will need a way to convert crypto payments into USD (US dollars, also called fiat) or a crypto equivalent of the dollar, called stablecoins. The easiest way to manage these funds is with a crypto account.
A crypto account allows you to easily handle crypto payments and convert them to fiat as needed, reduce reliance on credit card processing, and use crypto to pay for shipping and other business expenses.
How Can I Open a Crypto Account for My Business?
You’ll need two tools for this: a crypto wallet and a platform that allows you to accept crypto.
A crypto wallet is a digital wallet designed to send and receive cryptocurrencies. Most wallets handle a wide range of different cryptocurrencies, but make sure to check which cryptocurrencies are supported before making your selection. Like all important business decisions, research customer reviews to choose the best wallet for your company.
You also need a payment processing platform that allows you to accept crypto payments from customers and convert them into fiat. Most businesses will choose a platform that can be attached to a business bank account so they can withdraw fiat directly to that account via ACH or wire transfer.
How Can I Integrate Crypto Payments into My eCommerce Site?
The easiest way to take crypto payments on your site is through a payment processing platform. Use plugins or API integrations to connect your website product links to crypto payments that are handled directly by your payment gateway.
Customers check out using your website’s cart—it’s the same process as using traditional payment methods. When they use crypto, your cryptocurrency payment processing platform will manage the transactions and send them to your account’s crypto wallet, where you can store them, convert them, or withdraw them to a private wallet; it’s your choice.
Read about your best options here: Accepting Cryptocurrency for eCommerce: A Guide for Business Owners
What Key Considerations Are Involved in Accepting Crypto Payments?
The main points you need to decide are:
- Which cryptocurrencies you want to accept
- Whether you want to automatically convert crypto payments into fiat or stablecoins
- Whether to use some crypto profits to pay for business expenses like shipping
- Which payment processor platform is best for you
These key decisions should factor in the types of products you sell, the volume of your sales, and whether it is worth taking some risk in watching crypto markets to hold any crypto for potential profit.
What Challenges Might I Face When Accepting Crypto Payments?
While cryptocurrency is a complex and technical field, the industry has matured enough over the years that many easy solutions exist to address the greatest challenges in accepting crypto payments. The main challenges involved are:
- Price volatility
- Educating consumers and customers about crypto
- Building trust
- Slow crypto adoption
- Technical knowledge
- Following regulations
- Managing privacy and security
- Understanding and managing taxes
- Integrating payments with your eCommerce site
What Legalities Are Involved in Taking Crypto Payments?
Crypto is an evolving space, so the most important thing to know is that you are responsible, as a business owner, for staying on top of regulations in the space and how they might affect you. This is particularly important at the state level, as crypto rules differ from one state to the next.
Agencies like the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Financial Action Task Force (FATF), and the Financial Crimes Enforcement Network (FinCEN) are all involved in regulating the crypto space, so keep an eye on any announcements they make that impact your company.
Just like any business that accepts digital payments, you have to ensure you follow rules regarding protecting your customers’ personal data. Additionally, you will provide accurate data for your account as it pertains to Anti-Money Laundering (AML) and Know Your Customer (KYC) rules, which includes verifying your identity and protecting your account to prevent strangers from having access to your accounts.
You’re also responsible for adhering to the current rules on paying taxes for accepting crypto payments, converting crypto, and buying goods or services using crypto.
Additionally, most companies will add details about crypto payments to their site’s terms of service (ToS). This may or may not be legally required for your business, so be sure to consult with a legal expert.
Using Your Crypto for Business Expenses
With your crypto account set up and ready to handle sales on your eCommerce site, you’re empowered to take part in the growing crypto economy. This also opens up new possibilities, as you can now use crypto to pay for business expenses.
If your company ships products to customers, you’ll be happy to know you can use your crypto to pay for shipping using Bitcoin Postage. We’re confident that you’ll find it quick, easy, and fun to use, just like our thousands of active crypto customers.