How to Choose a Crypto Payments Service Provider
This article can help you make the best decision and provide the features available from different kinds of options. Also, we'll assist you in understanding some jargon as we progress.
The two methods of cryptocurrency payments
If you are looking to allow crypto on your site, you generally have two options:
- Crypto lite: If you'd like to take cryptocurrency payments but you're not looking more than that, this option is the right option for you. Find options that will guarantee you an appropriate amount of money into your account as quickly and efficiently as you can.
- More details: This category can be very complex. If you'd like to protect most or all of your cryptocurrency, or accept an increased number of currencies, or even sell NFTs or other NFTs, you'll need sophisticated options.
There is a choice of custodial or non-custodial crypto payments service
When it comes to accepting cryptocurrency payments on your website The most crucial decision you'll have to make is whether you'll choose the custodial or not-custodial service.
It's best to choose between "crypto gentle" or "something greater."
Custodial crypto payments providers
Many merchants opt for this choice offers security and comfortable user experience. The support you receive is available as well as conditions of service, and you can benefit from additional capabilities (such like automated settlements for your bank) because the service provider manages your crypto accounts on your behalf.
If you're trying to go with "crypto lighter," custodial crypto payments service providers are your only choice.
The advantages of using a cryptocurrency payment provider which is custodial are:
- Fully integrated extension
- Accepting any cryptocurrency, or any cryptocurrencies that are offered by customers
- Directly into your account at the bank Fiat currency
- Account access with an email address and password
- Support Services
- Low transaction fees and guarantee against chargebacks and reimbursements
Providers of non-custodial crypto payment services
If you're proficient in cryptocurrency but are seeking to access more sophisticated features it is possible to look into a non-custodial service. These solutions will give you complete authority and control over your security as well as the administration of your crypto accounts. It's definitely not something you want to be hesitant about, however to proprietors of stores who have been trained they can unlock the entire possibility of cryptocurrency.
Advantages of using a not-custodial Bitcoin payment services:
- You can access and manage your cryptocurrency as soon as it's accepted - no waiting for the settlement of the third party.
- There are no restrictions on the terms and conditions. There is no way to remove or terminate your account or services.
- Every action is dependent on the laws in force as well as your own personal abilities. You are free to sell what want to. It is also possible to handle your money in the way you think fit.
- Your sole accountability lies with the security of your account - no security breaches or hackers by third party sources could affect the funds you have.
Crypto vocab check
Fiat cash: Currency issued by an official state (e.g. USD, EUR, GBP).
The term "cryptocurrency" refers to currency that is secured with digital cryptography (e.g. BTC, ETH, DOGE).
Stablecoin The term refers to a type of cryptocurrency tied to fiat currency. (e.g. USDC where USDC = 1 USDC equals 1 USD).
Features of a crypto payment service provider
There are many options to take into consideration when picking between custodial and other non-custodial service.
Below is the complete list of features as well as a list of considerations that illustrate how different options are. In using the listing, it is important to know that this list provides a summary of features that are feasible. Some partners may not be able to provide every feature.
| The Feature | Custodial | Non-custodial |
| A contract with an unrelated third party If you sign up to the service offered by an entity that is governed by the these terms and conditions. | Y | N |
|
Recovery of Account
If you have lost access to the account you have created, then you may ask for a reset of your password or recover access to your account through contacting the business. |
Y | N |
|
Support
You will be able to connect and receive support from the company. |
Y | N |
|
Automatic exchange for stablecoins and another crypto
You can choose to have the crypto transformed into a different cryptocurrency or stablecoin. |
Y | Y |
|
Automatic exchange to fiat
It is possible to opt for a crypto that is automatically converted into fiat. Note that the calculations of rates and exchange rates may differ by the provider. |
Y | N |
|
Automatic settlement of your account to your bank
You may decide to have the money transfered into your account automatically. |
Y | N |
|
You will be able to receive the exact amount in currency fiat
It also reduces the chance of being affected by crypto price fluctuations. The non-custodial solution can help reduce, however, they cannot completely eliminate the volatility associated with cryptos through choosing to permit stablecoins. |
Y | N |
|
Merchant-specific features
Certain providers provide features that make it easier for merchants to save time and effort. These include features such as risk profiling (to aid in making sure that you do not receive money from criminals) and also safeguards against underpayment and overpayment along with emails for invoices. |
Y | N |
|
Transaction finalization protection
Blockchains rely on blocks being created in order to complete transactions. The more blocks that are generated after a specific transaction, the more secure that transaction is. The protection helps prevent sending out products and then experiencing a reversed transaction. |
Y | N |
|
Funds insurance
Custodial as well as non-custodial options come with the risk of hacking. Insuring funds is a way to protect those who utilize custodial solutions. It's not the same to every customer, and the merchants need to be aware of their suppliers the guidelines for reimbursement and insurance. |
Y | N |
| Y | Y | |
|
Supports subscriptions/recurring payments
Paying with cryptocurrency requires customers to authorize each payment. So, recurring payments aren't an option. However, certain custodial platforms offer the ability that automatically create and mail invoices on a regular basis. |
N | N |
|
Low transaction fees
Non-custodial and custodial payment companies typically have significantly lower transaction fees (1-1.5 percent) as compared to traditional payment providers (2-3.5 percent). |
Y | Y |
|
Exposition to crypto networks (e.g. gas) fees
Direct cryptocurrency transactions have the network's own fees. In the case of Ethereum this is also known as gas charges. Processing companies for payments may take on these fees while other transmit them. |
N | Y |
|
Control solely
The only one who can make outgoing transactions through your account. No other entity/person can authorise transactions without having access to your password. |
N | Y |
|
Accept all crypto currencies across any network
Paying processors who accept cryptocurrency support different types of currencies as well as crypto-based networks. When you use custodial options, you're limited to the currency they will accept. Alternative solutions that aren't custodial can provide an array of options. |
N | Y |
|
integration
It's one thing receiving the payment. It's a different thing to identify which client paid for the transaction, and to know for the value of their purchase. Our partners offer a variety of integrations, from setting up to managing every day. |
Y | Y |
Review your options and choose the best cryptocurrency payment provider to run your business.
It can be difficult to comprehend the different choices available to you for crypto however it is important to offer the best choice that is suited to your as well as your customers' requirements. You should be sure to study the advantages and disadvantages of the two types of crypto payments providers, determine which one is the ideal option for your specific business.
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