How do crypto payments work?

If you've ever wondered about the buzz around crypto payments and how to integrate them into your business, you're in the right place. Today, we're diving into the world of cryptocurrency payment gateways and how they differ from traditional payment gateways.

What is a crypto payment gateway?

First things first, what in the world is a cryptocurrency payment gateway? Just like a normal payment gateway, it verifies and facilitates transactions involving cryptocurrencies like Bitcoin and Ethereum. It's the bridge connecting buyers, sellers and the blockchain (the database in which all cryptocurrency transactions are recorded).

How do crypto payment gateways work?

Now, let's unravel the mystery of how these gateways operate. When a purchase is made using digital currencies, the payment gateway for cryptocurrency plays a vital part. Here's a basic rundown:

1. Initiate the sale: Your customer decides to make a purchase using crypto. They choose the crypto payment option during the checkout.
2. Processing the transaction: The payment gateway kicks into action, converting the purchase amount into the equivalent crypto value. It checks if your customer has enough crypto in their wallet to cover the cost.
3. Verification on the blockchain: Once the payment is processed, the gateway verifies the transaction on the blockchain—no middlemen are involved. This decentralised process enhances security and transparency.
4. Sale completion: Voila! The transaction is complete, and your customer walks away with their purchase. You, as the merchant, receive the payment in crypto—fast, secure and hassle-free.

Crypto payment gateway vs traditional payment gateway

Now, you might be wondering, "How is this different from traditional payment gateways?" Well, looking at the bigger picture, it isn’t, but there are a few details that stand them apart. let's break it down:

• Decentralisation: Unlike traditional gateways, crypto payment gateways operate on decentralised blockchain networks. No central authority is overseeing the process, enhancing security and reducing the risk of fraud.
• Global transactions: Crypto payments don't discriminate based on borders. With traditional gateways, you might encounter currency conversion issues and high fees when making international transactions. However, global crypto payments can be accepted quickly and with ease.
• Transaction speed: Crypto transactions are known for their speed. No more waiting for days for your payment to clear; with crypto, it's often a matter of minutes.

Your crypto payment gateway solution

So, are you ready to dive into the world of crypto payments? Here are a few tips for finding the right gateway for you:

• Compatibility: Ensure that the gateway supports the cryptocurrencies you want to use. Some gateways are exclusive to specific coins.
• Security: Look for a gateway with robust security features. The decentralised nature of blockchain adds an extra layer of protection, but it's always good to double-check.
• User-friendly interface: Nobody wants to deal with a confusing interface. Opt for a gateway that's user-friendly and makes the entire process a breeze.
• Transaction fees: While crypto transactions are often cheaper than traditional methods, there can still be fees involved. Compare the fees of different gateways to find one that suits your budget.

How Total Processing can help you accept crypto payments

To accept crypto as a payment, integrating a payment gateway that can facilitate these digital currencies is crucial. At Total Processing, we have partnered with Rocketfuel, a dedicated crypto payments processor that enables merchants to accept Bitcoin payments and other cryptos on their website.

By collaborating with Rocketfuel, our merchants can easily accept cryptocurrencies with our scalable payment gateway and gain access to more than 120 digital coins.

“Despite having a whole host of benefits, accepting crypto payments doesn’t come without its risks. That’s why we chose to partner with Rocketfuel; the advanced payment system helps us offer our merchants low fees, protection from price volatility and no chargebacks.”- Head of Specialist Sectors, Martin Brindley

So there you have it—a beginner's guide to understanding how crypto payments work. It's like having your own digital wallet, and with the right gateway, you can unlock a world of seamless, secure and borderless transactions. Get in touch with one of our specialists today and see how you can integrate cryptocurrency payments into your offering.