Crealanta Magazine

How do I know how to choose an Crypto Payments Service Provider

Nov 25, 2022

This guide will walk you through the key choices you'll have to make as well as the choices that are available from a variety of solutions. We'll also help you understand the various terms we'll use while we're at it.

The two ways to cryptographic payment

If you are looking to use bitcoin for your site, you have two options:

  1. Cryptolite: If you'd rather using cryptocurrency as a method of payment on your purchases and are a very little interest in the subject, then this program will fit perfectly for the person. It is important to find solutions that will ensure that you receive exactly the right amount of cash in your account as fast and effectively as possible.
  2. More details: This category can be very complex within a brief time. If you want to keep the majority or even all your cryptos as crypto, or even take on a wider range of currency, or even offer NFTs for sale, you'll require more sophisticated strategies.

Choosing between a custodial and cryptocurrency payment firm that is not custodial

If you're contemplating accepting bitcoin on your website The first thing you'll have to deal with is whether to pick the custodial or no-custodial services.

It's a good idea to make a choice of "crypto light" or "something greater."

Service providers of custodial crypto payments

Most merchants select this choice as it offers security and an effortless experience for users. Your support will be in line with the service's terms and conditions as well as you will benefit from other features (such the ability to automate the settlement process of your bank) as the service providers manage your cryptocurrency accounts on your behalf.

If you're trying to get "crypto lighter," Custodial crypto payment options could be the perfect option.

The advantages of a crypto-based payment service that's custodial comprise:

  • A complete extension that is integrated
  • Acceptance of using one or more cryptocurrency from the customers
  • Settlements sent directly to your bank account fiat currency
  • Account access via an email address as well as a password
  • Support Services
  • Reduced transaction cost and a promise against chargebacks and reimbursements

Providers of non-custodial crypto payment solutions

If you have a great deal of experience in cryptocurrency and are looking to gain access to advanced options, you can consider a non-custodial alternative. If you choose a non-custodial solution that you control everything and have the ultimate duty will be to guarantee your security and the management of your accounts in cryptocurrency. This is not something to do with aplomb. If the store's owners possess the appropriate qualifications, they are able to tap the full potential of cryptocurrency.

The benefits of having the custodial cryptocurrency payment provider:

  • It is possible to access and control your crypto currency as soon as it's approved - there's no waiting to be settled by an unrelated entity.
  • There aren't any restrictions to the Terms and Conditions. No person can stop or terminate your account  or product you're using.
  • These actions are not restricted by the laws that are applicable and are the discretion of the individual. You are able to sell whatever you'd like to. It is also possible to manage your money in the method you believe is the best for your needs.
  • Your only responsibility is the security of your account - no attack or breach of data by a third party will affect your account's funds.

Crypto vocab check

Fiat Currency: Currency that is issued by a state (e.g. USD, EUR, GBP).

currency: The currency is protected by digital cryptographic methods (e.g. BTC, ETH, DOGE).

Stablecoin Stablecoin can be described as one of the cryptocurrency types that are linked to fiat currencies. (e.g. USDC (e.g. USDC). USDC is USDC in which 1 USDC equals USDC equals one USD).

Crypto payment provider features

There are a lot of options to consider when the decision between custodial or non-custodial services.

Below, you'll find the complete list of aspects and options to demonstrate what options exist. When using this list It is crucial to understand that it is a summary of the features that are likely to be provided. There are not all providers that offer every feature.

Features Custodial Non-custodial
Contract in conjunction with a third-party You can sign up to the service of a business which is subject to the Terms of Service. Y N
Recovery of accounts If you're unable to login into your account, you may ask for a change in your password or access the service to recover your account by contacting the business. Y N
Support
The user will have access to support and assistance by the company. 		Y N
Automatic exchange to stablecoin or another crypto
You can choose to have your cryptocurrency transformed into a new cryptocurrency, or stablecoin. 		Y Y
Automatic exchange of fiat currencies
You can decide the possibility of converting your cryptocurrency to fiat in a single step. Please note that calculations of rate of exchange and the rates could be different depending on your partner. 		Y N
Automatic Settlement for your Bank
You are able to create an automated transfer of money directly to your account at your bank. 		Y N
Find out the exact value of currency fiat
This can help protect you from fluctuations in costs associated with crypto. Alternatives that do not have custodial status could reduce - but do not eliminate - volatility through allowing only stablecoins. 		Y N
Specific features for merchants
Certain providers offer features that help businesses to save the amount of time and energy. These include things like risk profiling (to make sure that your company does not receive funds from criminals) and also safeguarding against overpayment and underpayment as well as invoices sent via email. 		Y N
Transaction finalization protection
Blockchains are based on blocks that need to be produced for the purpose of making transactions. The higher the amount of blocks that are generated after a certain transactions, the more secure the transaction. Secure transactions help to reduce the possibility of sending out items or having the transaction reversed. 		Y N
Fonds to insure
Custodial and other alternatives that are not custodial are subject to the possibility of being affected. Insurance on money is an alternative for those who prefer custodial. But, the protection offered by the insurance companies differs, and businesses should be aware of the insurance policies of their counterparts and reimbursement requirements. 		Y N
Y Y
Supports subscriptions/recurring payments
Users who pay with cryptocurrency are obliged to sign their signatures each time they make a payment. So recurring payments are not an alternative. But some custodial services allow you to automatically generate invoices according to a specific timeframe. 		N N
Transaction fees that are very low
Non-custodial and custodial payment companies generally have significantly lesser transaction costs (1-1.5 percent) as compared to traditional payment companies (2-3.5 percent). 		Y Y
The potential risk of exposure to cryptocurrency networks (e.g. gas) fees
Direct cryptocurrency transactions incur specific network charges - in the case of Ethereum they are referred to as 'gas' charges. Certain payment processors cover fees, while some transfer them to the user. 		N Y
sole control
The sole person who is able to make transactions outgoing from your account. Anyone else isn't able to authorize transactions, except in the event that they can gain access to the password for private use. 		N Y
Take all cryptocurrency in any network
These processors offer a variety of coins as well as crypto-based networks. When you use custodial options, it is only possible to utilize the currency they allow. Alternative solutions that aren't custodial provide a greater variety of possibilities. 		N Y
integration
It's one thing to get the funds, however, it's a different matter to identify which customer has paid for the transaction, as well as to identify why that it was for a purchase. Our partners offer solid integrations that cover everything from setting up to managing daily. 		Y Y

Explore your options and select the best payment method to run your business.

The options available for cryptocurrency can seem confusing, but it's beneficial to choose the right payment option that meets yours and also your clients' needs. Take the time to look at the pros and cons of the two types of payment options that make use of cryptocurrency. Then, think about which one will best for your firm.

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