Have you ever thought about what are the advantages of paying in cryptocurrency online? Why should everyone consider crypto as a proven payment method? First of all, it’s essential to understand that cryptocurrency is getting more and more mainstream
Cryptocurrencies are digital and virtual currencies that have been secured by cryptography. Therefore it makes it almost impossible to double-spend or counterfeit.
Numerous cryptocurrencies are decentralized networks that are based on blockchain technology. For those who aren’t familiar with the definition of it, it’s a distributed ledger enforced by a network of computers.
The main feature of cryptocurrencies is that they aren’t issued by any central authority. It makes them theoretically immune to manipulation or government interference.
A great number of experts are convinced that related technology and blockchain will be able to disrupt numerous industries, including law and finance.
So, what are the main advantages of cryptocurrencies as an online payment method? Let’s get straight from reason number one.
Since pandemic has led to a surge in credit card fraud. In April 2020, the dollar volume of attempts of fraudulent transactions rose 35% in comparison to April 2019.
It’s no surprise that the majority of fraud reports as payment methods in 2020 were debit and credit cards. Most usually small businesses were the main target of this type of fraud.
For instance, you can use crypto as a payment method on Coingate to purchase eBay Gift Card to get any goods or services from all over the world and be assured that your payments will be secure. Cryptocurrencies are way much more secure than debit and credit payments.
The reason for that is that cryptocurrencies don’t need any kind of third-party verification. Imagine a situation where one customer is paying with cryptocurrency.
Their data is not stored in a centralized hub where data occurs most commonly. Instead of that their information is stored in their crypto wallet.
Since the blockchain general ledger is mostly used to record and verify each transaction making it is almost impossible to steal someone’s identity.
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Keep in mind that cryptocurrency payment is through, it’s permanent for sure. It may be a double-edged sword for businesses that are relatively small.
There’s been a saying that transactions are able to be refunded only by the party which is receiving the funds. Each business that accepts Bitcoin should be prepared for the possibility of any customer that is requesting refunds. It should also keep track of the amount of money that each customer has managed to pay.
On the contrary, the irreversibility of cryptocurrency is helping business owners to better manage their cash flow.
In case someone’s requiring a refund, the retail is the one who’s responsible for manually paying them back and there are no chargebacks to worry about. This situation forces your team to keep immaculate records.
Nonetheless, this particular process is able to also create inefficiency in each of your business operations and a great number of additional work for your employees.
In case you’re having a lot of refunds during the holiday season, the team of yours will have to divert attention and time for returning payments individually.
Also read: Top 5 Automation Tools to Streamline Workflows for Busy IT Teams
Did you know that merchants are those who are responsible for setting up fees for numerous payment processors, as well as paying for transaction fees? Cryptocurrencies are charging extremely low fees if any. There are some Bitcoin exchanges that are offering fees under 1%.
It’s the same if your business is serving customers overseas. Cryptocurrencies are there to help you avoid any kind of international currency payment fees.
The reason for that is that cryptocurrencies are not tied to any kind of national bank or country of origin. In conclusion, businesses are not waiting for payments to pay the costs or to clear foreign banks.
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