Which Crypto Payments Provider to Select? Payments Provider
We'll help you make the most important decisions to take, and provide an overview of the features available from different types of solutions. Plus, we'll demystify some of the jargon we'll use as we go along.
Knowing the two different approaches to cryptocurrency payments
If you wish to take cryptocurrency for your website There are generally two choices:
- Cryptolite: If you'd like to accept cryptocurrency for payments however, you're not interested beyond that, this is the perfect solution. Look for options which will ensure that you receive an appropriate amount of money into your account as quickly and affordably as possible.
- More: This category can be complicated in a short time. If you wish to preserve some or all your cryptocurrency as digital currency, allow a greater variety of currencies, or even sell NFTs, then you'll require higher-end options.
The choice between custodial and non-custodial crypto payments provider
In the event of accepting cryptocurrency payments on your site The most crucial option you'll be faced with is whether you'll choose a custodial or non-custodial payments provider.
It's a good idea to make a option of "crypto lightweight" or "something different."
Custodial crypto payments providers
A lot of merchants choose this choice gives peace of mind and a familiar user experience. The support you receive is available, can rely on terms of service, and can take advantage of more functions (such as automatic settlement to your bank) since the service provider handles your accounts in crypto for you.
If you pursue "crypto light," custodial crypto payments service providers are your only option.
The advantages of custodial crypto payments providers comprise:
- A fully-integrated extension
- Accepting the use of one or more cryptocurrency from customers
- Directly to your bank account in fiat money.
- Access to your account via email and password
- Support Services
- Lower transaction costs and guarantee against chargebacks and refunds
Crypto payment providers that are not custodial
If you're an expert in crypto and are looking to access more sophisticated features, you might want look into a non-custodial service. With non-custodial solutions you'll be in complete authority and control over the security and management of your accounts in cryptocurrency. It's not something you should do lightly. But for qualified store owners you can unlock the maximum potential of cryptocurrency.
Benefits of using a non-custodial crypto payments provider:
- Control and access to your crypto immediately after it's accepted - no waiting for settlement by an outside person.
- Fewer restrictions from the terms and conditions. No anyone can revoke or deactivate your account or service.
- The actions you take are only subject to the laws in force and your own capabilities. You are able to sell anything you'd you'd like and manage your crypto currency however you feel fit.
- Sole responsibility for your account's security . No third-party data breaches or hacks may affect your bank account.
Crypto vocab check
Fiat Currency: Currency issued by the government (e.g. USD, EUR, GBP).
The term "cryptocurrency" refers to The currency is secured with the principles of cryptography (e.g. BTC, ETH, DOGE).
Stablecoin: A type of cryptocurrency that is tied to a fiat currency. (e.g. USDC where 1 USDC equals 1. USD).
Crypto payment provider features
There are many features to take into consideration when picking between custodial and non-custodial services.
Below, you'll find an extensive list of options and considerations to illustrate the difference between options. When using the table, be sure to be aware that this table is an overview of what's feasible. There aren't all providers that provide every option.
| Features | Custodial | Non-custodial |
|
Contract with a third person
Sign up for an offer with a company that is governed by its terms of the service. |
Y | N |
|
Account recovery
If you are unable to access your account, you may get a password reset request or account recovery service through the service provider. |
Y | N |
|
Support
It will be possible to connect and receive support from the provider. |
Y | N |
|
Automatic exchange of stablecoin or other crypto
It is possible to opt to have your crypto transformed into a different cryptocurrency or stablecoin. |
Y | Y |
|
Automatic exchange of fiat currency
You can choose to have crypto automatically converted to fiat. Please note that calculations for exchange rates and rates may differ by the partner. |
Y | N |
|
Automatic settlement of your account to your bank
It is possible to choose to have your funds paid to your bank automatically. |
Y | N |
|
You will receive the exact amount in currency fiat
This helps avoid exposure to volatility in the price of crypto. The non-custodial solution can help reduce however they cannot eliminate volatility by choosing to only accept stablecoins. |
Y | N |
|
Features specific to merchants
A few providers have features to make it easier for merchants to save time and effort. This includes things such as risk profiling (to assist in ensuring that you do not receive money from bad actors) as well as protection from overpayment and underpayment as well as email invoices. |
Y | N |
|
Transaction finalization protection
Blockchains require 'blocks' to be created in order to conclude transactions. The more blocks created following a specific transaction, the safer the transaction. Security helps to avoid the risk of sending products and then seeing a transaction revert. |
Y | N |
|
Funds insurance
Both custodial and non-custodial solutions carry a risk of hacking. Insurance on funds can safeguard users who use a custodial service. But, the protection offered by insurance companies varies and merchants should carefully research partners' insurance and refund policy. |
Y | N |
| Y | Y | |
|
Supports subscriptions/recurring payments
Users who pay with cryptocurrency must authorize each transaction. This means that recurring payments will not be an option, though some custodial solutions offer tools to automatically generate and send invoices on a regular basis. |
N | N |
|
Low transaction fees
Custodial as well as non-custodial companies typically charge significantly less transaction fees (1-1.5 percent) that traditional providers (2-3.5%). |
Y | Y |
|
Exposition to crypto networks (e.g. gas) fees
Direct cryptocurrency transactions have their own network fees - with Ethereum being the most popular, they are referred to as 'gas' charges. Payment processors may absorb these fees; some pass these fees on to the user. |
N | Y |
|
Sole control
Only you are the one with the ability to make transactions outgoing using your account. Nobody else can approve transactions without access to your personal account key. |
N | Y |
|
Accept any cryptocurrency across any network
Payment processors that accept crypto support a different range of crypto networks and coins. With custodial solutions, you're limited to the currency they accept. Alternative solutions that aren't custodial can provide a wider range of options. |
N | Y |
|
integration
It's one thing receiving the payment, but it's a different thing to know which customer made the payment and for the amount of their purchase. Our partners offer comprehensive integrations, ranging from setup to day-to-day management. |
Y | Y |
Review your options and choose the most suitable cryptocurrency payment service to run your business.
Cryptocurrency solutions can seem confusing It's worthwhile to offer solutions that are best suited to the needs of your customers and requirements. Take the time to navigate through the advantages and disadvantages of the two types of payment providers that use crypto, and take note of which one is the right fit for your particular business.