Cryptocurrency Payment Gateway & Processor – Crypto Merchant Account

Fees that PurePay will charge on Cryptocurrency Processing depends on factors like Processing history, method of sales, Countries, Volume of sales, and products. In addition, all merchant accounts are unique but included terms stays the same for most

• Merchant Discount Rate
• Transaction fees
• Monthly gateway fee
• Zero – Six-month rolling reserve (Depending on bank and risk exposure)
• Chargeback fee
• Refund fee

Applying for a cryptocurrency merchant account requires a slightly different process compared to traditional merchant accounts. And in fact, applying for a cryptocurrency merchant account also has a slightly different process compared to other high-risk merchant accounts like the forex merchant account, dating merchant account, adult merchant account, or CBD merchant account.

With a cryptocurrency merchant account, you will overcome the buzz of the industry being labeled high-risk. Of course, there isn’t any taboo or bad reputation with crypto, but there are lots of uncertainties. Several factors were considered before the cryptocurrency industry was labeled high risk, including lack of industry knowledge, money laundering fears, volatility in pricing, and CNP transactions. Let’s take a deep look at each of these factors, one after the other.

Lack of Cryptocurrency Knowledge

If you have always been up to date with happenings in the fintech space, you will agree that cryptocurrency and blockchain sprung up in 2009, which makes it a relatively new industry. While on the one hand, most acquiring banks and payment processing companies are skeptical of what they should charge; on the other hand, they need a full grasp of the likely expectations. More importantly, the fact that digital payment is significantly different from traditional payment is also a huge challenge.

Whereas the whole intent of cryptocurrency is to shift power away from traditional banks and regulatory authorities, thus wielding individuals with increased strength and control. The nature of cryptocurrency generally is genuinely troubling for banks. It is only time that can prove the biggest ally of cryptocurrency, provided it can show enough stability and strength.

Volatility in Pricing

Undeniably, cryptocurrency is a highly volatile digital currency with the potential for sudden downward and upward movements in value over a short period. Compared to other traditional markets, volatility is a significant factor in measuring risks in the cryptocurrency market. And this is due to their digital nature, low level of regulation, and small market size. However, the volatility can either be a healthy one or an extreme one. In healthy volatility, the price increases steadily and decreases within a broad range, but in extreme volatility, the market witnesses sudden price movements in either direction.

Even during the time of surges, it still witnessed significant dips in its value. For instance, the most volatile cryptocurrency is bitcoin. Reports revealed that it climbed $60,000 in the last couple of months from a mere $30,000. During this surge, it would experience frequent sudden dips by thousands of dollars just overnight.

It may also interest you to note that other coins aside from bitcoin in the cryptocurrency world also experience significant sudden dips. That said, millennials have continued to promote the worldwide acceptance and adoption of bitcoin and other cryptocurrencies as means of payment.

With more emphasis on privacy and security, including wallets and other digital money institutions, and increased exchangeability, more consumers will build confidence within the next couple of years. Supply and demand, investor and user sentiments, government regulations, and media hype influence volatility. It is believed that the price volatility in cryptocurrency will decrease with increased trust from consumers and users.

Cryptocurrency Money Laundering

Money laundering and other criminal activities in cryptocurrency are a huge concern for many banks and credit card processing companies. In recent times, cryptocurrency exchanges are often used to facilitate money laundering. Money launderers use crypto to their advantage, moving funds for illicit activities through different wallets before depositing them and cashing out at a crypto exchange. This could include trade in drugs and other services on the dark web, cybercrime, kidnapping, payment of ransom, and more.

According to the United Nations, nearly 2 trillion dollars is being laundered worldwide annually. Unfortunately, it is more worrisome that 90% of all these money laundering cases go undetected, thus making it a matter of genuine concern for cryptocurrencies. A simple example is a corrupt government official who received a bribe and found ways to conceal the source of the money by transferring in and out of various cryptocurrencies and fiat currencies. In fact, RenBridge was used to launder a whopping $540 million in crime-related activities using crypto in 2020.

Cryptocurrency and other high-risk industries like gambling, e-cigarettes & vape, and Nutraceuticals are vulnerable to money laundering and other criminal activities. However, the way crypto is used due to its anonymous nature is different and at the advanced level.

Should a bank or credit card processing company face legal action due to money laundering? Remember, this could damage their reputation.

CNP Transactions

The cryptocurrency model employs the card-not-present transaction (CNP). As you engage in cryptocurrency-based transactions, you do not use a debit or credit card, a model often seen with high-risk merchants.

Card-not-present transactions are highly vulnerable to chargebacks. This is due to the difficulty in establishing the true purpose of the transaction – whether or not the individual intends to purchase a product or service. With a chargeback alert system, you can significantly reduce the frequency of chargebacks that result from friendly fraud.

When you accept bitcoin and other cryptocurrencies as payment, you stand a chance to enjoy some significant benefits, especially with cryptocurrency exchanges. However, merchants need to be wary of the kind of legitimate forms of payment they accept. It could lead to the loss of potential customers or clients, negatively impacting your revenue.

From all indications, bitcoin and cryptocurrencies are here to stay. Therefore, accepting bitcoin transactions is in your best interest to be part of digital payment and the future. When you accept bitcoin and other cryptocurrencies as payment, you won’t likely experience frequent chargebacks. Of course, you know chargebacks are friendly fraud that most merchants deal with, and it’s usually costly – one of the reasons why the industry is concerned about high risk.

Now, we’ll examine some of the reasons you should consider accepting bitcoin as a means of payment. But before then, it is important to mention that bitcoin and other cryptocurrencies can serve the purpose of investment provided it is in line with the company’s policy. Although, it is a risky investment due to its price volatility, you should only venture into it if you have a high-risk tolerance. Interestingly, businesses can also convert bitcoin and other cryptos to fiat currency on the same day, depending on their specific purposes and desires.

On the flip side, businesses may also decide to store bitcoin for as long as possible. If there’s an increase in the value of the stored bitcoin over that period from the amount initially received, it will be stored based on the new value until it is sold, or the market drops again.

Depend on us at PurePayPayments to provide you with the best and cheapest Bitcoin Merchant Service Solutions.