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Which Crypto Payments Provider to Choose? Payments Service Provider

Nov 25, 2022

We'll help you make the crucial decisions you'll need to take and provide you with details of the choices available in the various kinds of options. Additionally, we'll assist you in understanding the terminology while we're at it.

Two distinct ways to make payment with cryptocurrency

If you want to accept cryptocurrency on your website , typically are two choices:

  1. cryptolite When you find that you'd love to take crypto payments but have any reason for you to consider it more than that, this is an ideal solution. You'll look for solutions which will allow you to get the appropriate amount of money to your bank account as fast and as easily as you can.
  2. Further information: This category can be complicated in a short time. If you're looking to store the bulk or even all your cryptocurrency in cryptocurrency, or accept a larger variety of currencies, or even sell NFTs in the future, then you'll require more sophisticated options.

The choice between custodial and non-custodial crypto-payment

When you decide to accept cryptocurrency on your site first thing to take is to decide if you want to use the custodial, or not-custodial service.

It's good to decide on "crypto gentle" or "something distinct."

Payments providers that use custodial crypto

A lot of merchants have discovered that this option gives security and a simple user experience. Support is available along with the Conditions of Service and will benefit from additional features (such the ability to automate the settlement process of accounts with banks) because the service company manages your crypto accounts on your behalf.

If you are looking to "crypto lightweight," custodial crypto payments solutions can be the right choice.

The advantages that are associated with Custodial Crypto Payments provider include:

  • A complete extension that runs seamlessly and seamlessly
  • Take one or more currencies from your customers
  • Directly into your bank account, fiat money.
  • Your account can be accessed via your email address along with a username and password
  • Support Services
  • The lowest transaction fee and the security from chargebacks and refunds

Service providers of crypto-payments that don't provide custodial service

If you're experienced with cryptocurrency and would like to gain access to advanced features you can think about a non-custodial approach. With non-custodial alternatives, they provide you with complete control , and the only obligation to your security and the management of your crypto accounts. It's definitely not something you should take lightly. If you're an owner of a firm that is licensed, an active license, you can unlock all the potential that cryptocurrency has.

Benefits that come with using custodial cryptocurrency payment provider

  • It is possible to access and manage your cryptocurrency as soon as you're accepted. You don't have to wait until you receive a settlement from the third-party entity.
  • There are fewer restrictions on these Terms and Conditions. It is not possible to stop or cancel your account service.
  • The laws you are subject to depend on the law applicable as well as your personal abilities. You are able to offer whatever you want to anyone you'd like. It is also possible to handle your money as you believe is most appropriate.
  • The account you have is your sole responsibility for security. There is no way that hacking or data leak through a third party could impact the bank account of your.

Crypto vocab check

Fiat money: Currency issued by an official state (e.g. USD, EUR, GBP).

Money: It is secure with cryptographic principles (e.g. BTC, ETH, DOGE).

Stablecoin A type of cryptocurrency that is tied to fiat currency. (e.g. USDC (where 1 USDC is equivalent to one USD).

The Crypto Payment provider offers

There are many features that you should consider before deciding between custodial and non-custodial services.

Here is a comprehensive list of choices and a set of considerations that illustrate the different options that are available. If you're considering this list, it's important to keep in mind that this table offers an overall overview of the services expected to be provided. There aren't all partners that will offer every feature.

This is the Feature Custodial Non-custodial
A contract with a 3rd person Join the business's service that are subject to conditions of service. Y N
Account recovery If you're not able to log in, you may ask for the reset of your password or access recovery from the service company. Y N
Support
It will be possible to connect and receive support from the provider of service. 		Y N
Automatic exchange of stablecoin or other crypto
You can choose to transform the cryptocurrency into another cryptocurrency or stablecoin. 		Y Y
Automatic exchange for fiat currencies
You may choose to have your crypto transformed automatically into fiat. Be aware that the calculation of exchange rates and rates may depend on the particular partner. 		Y N
Automatic payment of the account of your bank
It is possible to choose to transfer the funds directly at your financial institution. 		Y N
Get the exact amount of currency in fiat.
This helps to prevent yourself from becoming the subject to the risk of volatility in crypto. Options that aren't custodial will reduce, however, they will not completely eliminate the volatility of cryptos through the use of stablecoins. 		Y N
Specific attributes that sellers can use
Certain companies offer features which help businesses to reduce time and effort. It includes features like risk profiling (to ensure your business doesn't be a victim of criminals who want to cash in) security against under and overpayments and email invoices. 		Y N
Transaction finalization protection
Blockchains need blocks constructed to conclude transactions. The greater the number of blocks created following a specific transactions, the better the transaction. Secure transactions help to minimize the risk that comes with sending goods and being able to reverse the transaction. 		Y N
Funds insurance
Non-custodial and custodial alternatives are at risk of getting hacked. The insurance on money can protect those who utilize custodial solutions. The same isn't true for each customer. Businesses should be aware of suppliers' policies on refunds and insurance. 		Y N
Y Y
Supports subscriptions/recurring payments
Customers who make payments using cryptocurrency must approve for each transaction. So, recurring transactions will not be possible. But, certain custodial companies offer tools to automatically generate invoices and then forward them to clients in accordance with the time frame they have set. 		N N
Transaction fees that aren't excessive
Payment service providers that are not custodial or non-custodial providers typically offer smaller cost of transactions (1-1.5 percent) as compared to traditional payment service payment service providers (2-3.5 percentage). 		Y Y
The potential exposure to crypto network (e.g. gas) fees
Direct cryptocurrency transactions come with their own network fees - in the case of Ethereum being the most popular and widely used, these are known as gas costs. The payment processor could pay these fees, and others charge the customer. 		N Y
Control solely
The sole person with authority to approve transactions outgoing through your account. The only other individual or organization that can authorise transactions, except if they have access to your password. 		N Y
Accept all currencies , on any network
The payment processors that process crypto transactions have a wide range of crypto networks and currencies. If you're using custodial services, they are restricted by their currency acceptance. Other solutions that don't require custodial authorization might offer different options. 		N Y
integration
Although it's one thing make the payment, it's a different thing to identify who paid for the purchase, and to know what purchase was made. Our partners offer solid integrations which cover every aspect from setting up to managing every day. 		Y Y

Consider your options and then select the right cryptocurrency payments service for your business.

There are a lot of options for cryptocurrency, but they're not all that clear. However, it's worth offering the right payment option that's compatible with the needs of your customers. Take the time to look through the benefits and drawbacks of two different payment options, and then decide the one that is best suited to your company.

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