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How can I best to pick a Crypto Payments Provider

Nov 25, 2022

This article will guide you through the key decisions you'll need to make and will describe the options available to you from various solutions. We'll also help you understand some of the terms as we go along.

The two ways to cryptographic payment

If you wish to take bitcoin on your website, you have two options:

  1. Cryptolite: If you'd prefer to use cryptocurrency to pay for your purchases and have little curiosity in it, then this program will be perfect for you. You'll look for solutions which will ensure that you receive the correct amount of money in your account as fast and efficiently as you can.
  2. More details: This category can be complex in a relatively short duration. If you want to keep any or all of your crypto as cryptocurrency, or accept a larger variety of currencies, or even sell NFTs, you'll need higher-end strategies.

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

If you're considering accepting bitcoin on your website, your primary choice confronted with is whether or not to pick the custodial or no-custodial service.

It's a good idea to make a choice of "crypto lightweight" or "something more."

Providers of custodial crypto payment

Most merchants select this choice because it provides security and effortless experience for users. The support you receive will be in line with and the conditions of service, and you can benefit from other features (such the automatic settlement of your bank) since the service provider manages your crypto accounts on your behalf.

If you're looking to go "crypto light," custodial crypto payments services can be the ideal choice.

The benefits of a cryptocurrency-based payment provider that is custodial comprise:

  • A complete extension integrated
  • Acceptance of the use for one, or more crypto from customers
  • Settlements sent directly to your bank account in fiat money
  • Account access via an email address and password
  • Support Services
  • Lower transaction costs and guarantee against chargebacks and reimbursements

Providers of non-custodial crypto payment services

If you've got a lot of experience in cryptocurrency and are looking to gain access to more advanced features, it's possible to consider a non-custodial alternative. With non-custodial solutions, you'll have complete control  and have the ultimate duty will be to ensure your security and the management of your cryptocurrency accounts. This is not something to do with aplomb. If store owners have the right qualifications, you will be able to unlock the full potential of cryptocurrency.

The advantages of a custodial crypto payments provider:

  • You can access and manage your cryptocurrency as soon as it's accepted - no waiting to be settled by a third entity.
  • There are no restrictions on Terms and Conditions - No person can cancel or suspend your account , or the service you are using.
  • These actions are not subject to the laws in force and the capabilities of your individual. You are able to sell anything you'd you'd like. You can also manage your money in the manner you feel is best for you.
  • Your sole accountability lies with the security of your account - no attack or breach of data by a third party could affect your account funds.

Crypto vocab check

Fiat Currency: Currency issued by a government (e.g. USD, EUR, GBP).

Currency: The currency is secured with digital cryptographic techniques (e.g. BTC, ETH, DOGE).

Stablecoin Stablecoin is a kind of cryptocurrency linked to fiat currencies. (e.g. USDC where USDC = USDC where 1 USDC equals USDC = 1 USD).

Crypto payment provider features

There are a lot of alternatives to think about in deciding between custodial and non-custodial services.

Below, you'll find the entire list of features and considerations to illustrate how different options are. While using this listing, it is important to understand that it is a summary of the features that are likely to be provided. Not all services offer every feature.

Features Custodial Non-custodial
Contract with a third entity Sign up for the service of a business that is governed by the terms of service. Y N
Recovery of accounts
If you're not able to log into your account, you can seek a change of your password or access the account recovery service through contacting the business. 		Y N
Support
The user will have access to and receive support from the company. 		Y N
Automatic exchange to stablecoin/other crypto
You may choose to have your crypto transformed to a new cryptocurrency, or stablecoin. 		Y Y
Automatic exchange of fiat currencies
There is a possibility to select to convert your cryptocurrency into fiat automatically. Please note that calculations for exchange rates and rates might differ by your partner. 		Y N
Automatic Settlement to your Bank
It is possible to set up an automatic transfer of the money transferred directly to your bank. 		Y N
Find the exact value of currency fiat
This can help avoid being exposed to volatility when it comes to the cost of crypto. Solutions that are not custodial could reduce - but do not eliminate - volatility by selecting to allow only stablecoins. 		Y N
Specific features for merchants
A few providers have features that help businesses to reduce time and energy. This includes things such as risk profiling (to ensure that your business doesn't get funds from criminals) as well as protection from overpayment and underpayment and invoices via emails. 		Y N
Transaction finalization protection
Blockchains depend on blocks to be produced for the purpose of completing transactions. The greater the number of blocks generated following a particular transactions, the more secure the transaction. Security helps to avoid the risk of sending items and having the transaction be reversed. 		Y N
Funds for insurance
Custodial as well as alternatives that are not custodial have the possibility of being compromised. The insurance on funds is an option for people who use the custodial option. But, the protection offered by insurance firms differs and merchants should carefully research their partners' insurance and reimbursement guidelines. 		Y N
Y Y
Supports subscriptions/recurring payments
Customers paying with cryptocurrency are required to sign off on every payment. So recurring payments are not an option. However, some custodial providers allow you to automatically generate invoices based on a specified timeframe. 		N N
Transaction fees that are low
Non-custodial and custodial payment companies generally charge considerably lower transaction costs (1-1.5%) than traditional payment providers (2-3.5%). 		Y Y
The risk of exposure to crypto networks (e.g. gas) fees
Direct cryptocurrency transactions come with particular network fees - in the case of Ethereum it being referred to as 'gas' fees. Some payment processors pay for the charges, while other transfer them to the user. 		N Y
sole control
The only one who is able to make transactions outgoing through your account. Any other person or entity can't authorize transactions, only if they are able to access the private password. 		N Y
Accept all crypto, on any network
The processors for crypto payments offer a variety of coins and crypto-based networks. With custodial solutions, you're only able to use the currencies they support. Alternative solutions that aren't custodial offer a wider range of options. 		N Y
integration
It's one thing to receive the money, however it's quite another to determine which customer has made the payment, and also to determine the reason for the it was a purchase. Our partners have solid integrations that cover everything from setting up to managing daily. 		Y Y

Review your options and pick the most suitable cryptocurrency payment service to manage your business.

The choices for cryptocurrency could be confusing however it's well beneficial to choose the right payment option that meets yours as well as your clients' needs. Take the time to look through the advantages and disadvantages of the two types of payment services that utilize cryptocurrency, then think about which one will best for your company.

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