Creative news

What is the best option to pick a crypto Payments Service Provider

Nov 25, 2022

Let us walk you through the crucial decisions that you'll be required to make. We'll describe the possibilities that are available from different types of choices. We'll also help you understand certain terms as we move through.

Knowing the two methods to cryptographic payment

If you're planning to accept cryptocurrency on your website there are two choices:

  1. cryptolite If you'd like using cryptocurrency to make purchases but aren't interested about that, this application will be perfect for those of you. It is essential to locate ways to ensure that you get the right amount of money into your account as quickly and easily as you can.
  2. More: This category can get complicated quickly. If you wish to preserve some or all of your crypto currency, or accept a larger selection of currencies, or sell NFTs, it is necessary to have sophisticated options.

Choosing between a custodial and non-custodial crypto-payments services

If you're considering accepting cryptocurrency for your website, the most important choice that you'll be required to make is whether you'll select a custodial or non-custodial payment service.

This goes hand-in-hand with your choice of "crypto lite" or "something greater."

Custodial cryptocurrency payment providers

Many merchants opt for this choice because it provides assurance and a pleasant user experience. You'll have access to support and the Terms of Service and be able to benefit from additional choices (such such as automated settlements to your bank) as your service provider handles your accounts in crypto for you.

If you pursue "crypto light," custodial crypto payments providers are your best option.

The advantages of custodial cryptocurrency companies for payments are:

  • Fully integrated extension
  • Accept any cryptocurrency or cryptocurrencies that are offered by customers
  • Settlements sent directly to your bank account in fiat currency.
  • Your account can be accessed via your email address and password
  • Support Services
  • Reduced transaction costs, and a guarantee against chargebacks and refunds

Crypto payment providers that are not custodial solutions

If you're well-versed in cryptocurrency and are looking to access more advanced features, you might want to consider a non-custodial solution. By using non-custodial options, you'll have total authority and control of your security and management of your cryptocurrency accounts. This is not something to take lightly, but when you're a qualified store owner, you will be able to unlock the full opportunities of cryptocurrency.

Benefits of using a non-custodial Crypto payment service:

  • You'll be able to manage and access your currency as soon you get it. There's no requirement to wait for the payment from an outside party.
  • Fewer restrictions from the conditions and terms. There is no way to revoke or terminate your account services.
  • The actions you take are only subject to the laws in force as well as the abilities of your individual. You can sell whatever you'd wish, and you can manage your crypto currency however you're comfortable with it.
  • Your sole accountability lies with your account's security - no hacking or data breach by a third party may cause harm to your bank account.

Crypto vocab check

Fiat Currency: Currency that is issued by the official government (e.g. USD, EUR, GBP).

The term "cryptocurrency" is a reference to currency that is secured with the use of digital encryption (e.g. BTC, ETH, DOGE).

Stablecoin The type of crypto that is tied to a fiat currency. (e.g. USDC (where 1 USDC = one USD).

The advantages of cryptocurrency payment providers

There are a variety of aspects to take into consideration when picking between custodial and non-custodial services.

Below, you'll find a complete list of features and features to highlight the differences between the options. In the event that you're employing this list you should know that it's a general guide to what's likely to be available. Certain partners might not offer each option.

The Feature Custodial Non-custodial
A contract signed with the third party. You sign up to the services of a company governed by conditions of service. Y N
Reset of accounts
If you have lost access to your account, it is possible to request a password reset or account recovery through the provider of service. 		Y N
Support
The user will have access to and receive support by the company. 		Y N
Automatic exchange of stablecoin or other crypto
You can choose to have the crypto changed automatically to another crypto or stablecoin. 		Y Y
Automatic exchange to fiat
You can choose to have the cryptocurrency converted to fiat automatically. Please note that calculations for exchange rates and rates can differ depending on the company that you partner with. 		Y N
Automatic Settlement to your Bank
You can choose to have the money transferred directly to your bank. 		Y N
Learn the exact amount of fiat currency
This helps avoid exposure to volatility in the price of crypto. Solutions that are not custodial will reduce, but not completely eliminate volatility, through the use of only stablecoins. 		Y N
Features specific to merchants
A few providers have features that help merchants save time and energy. These include things like risk profiling (to ensure that there is no money from criminals) and protection against overpayment or underpayment, and invoices via email. 		Y N
Transaction finalization protection
Blockchains are based on blocks that are created to conclude transactions. The greater the number of blocks created following a specific transaction, the safer that transaction can be. It helps avoid sending out products and then having a transaction reverse. 		Y N
Insurance for funds
All custodial or non-custodial solutions have the potential of being hacked. Insurance on money is a protection for those using a custodial solution. This protection may not be identical for all clients and companies should be aware of partner's insurance and refund policy. 		Y N
Y Y
Supports subscriptions/recurring payments
Customers paying with cryptocurrency must be able to authorize every payment. Therefore, recurring payments aren't possible, but certain custodial platforms offer the ability to generate and automatically send invoices according to a set date. 		N N
Costs of transactions are very low
Both custodial and non-custodial service providers usually offer considerably lower transaction fees (1-1.5 percent) than traditional service services (2-3.5%). 		Y Y
Exposition to crypto networks (e.g. gas) fees
Direct cryptocurrency transactions come with their own network fees - for Ethereum it being referred to as 'gas' fees. Some payment processors absorb these costs, while some transfer them on. 		N Y
Control solely
Only you are the one who has the power to authorize the transactions that go out of your account. Nobody else can approve transactions without access to the private key. 		N Y
Accept any cryptocurrency across any network
The payment processors that process crypto transactions provide a range of currencies and crypto-based networks. When you use custodial options, you're restricted by their support for the currencies that they accept. Alternative solutions can give you more options. 		N Y
integration
Receiving the money, however it's another thing entirely to know who has made the payment, as well as to find out the amount of their order. Our partners offer comprehensive integrations that cover everything from the initial setup all the way to day-to-day administration. 		Y Y

Explore your options, and then select the best cryptocurrency payment provider for your store

It can be difficult to understand the various options available for cryptocurrency It's worthwhile to offer the best solutions to the requirements of your clients and their requirements. Take the time to navigate through the pros and cons of two distinct options for payment via cryptocurrency, and then choose the best one for your business.

This post was first seen on here