Can My Business use Bitcoin?
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Bitcoin functions as an electronic currency. Merchants at both Brick-&-Morter and Online stores, who currently using PayPal or credit cards, will find Bitcoin an easy addition to their payment mechanisms.
Did you know, unlike other merchant services, Bitcoin has no charge backs and zero merchant fees? |
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Bitcoin payments are as easy as debit or credit card purchases, and can be received without a normal merchant account. Payments are made from a wallet application, either on your computer or smartphone; simply scan the recipient's address, the payment amount, and press send.
While the underlying mechanics of Bitcoin transactions will function fully without the need of a traditional third party, most merchants will find it beneficial to utilize some type of Point of Sale (POS) third party system to bride the gap between traditional retail and Bitcoin payments. |
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Bitcoin is a payment system that does not include cash transactions. All interaction takes place online, with wallets, through the blockchain. To make it easier to enter a recipient's address, many wallets obtain the address by scanning a QR code or touching two phones together with NFC technology.
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To start accepting bitcoin payments as currency, first decide whether to handle the bitcoin directly, or utilize a third-party POS application. Utilizing a direct wallet provides ultimate control of the bitcoin as well learning opportunities around the functionality of Bitcoin, but this opens the business up to price volatility and risk of human technological shortcomings.
In recent years many companies have come along to help the merchant get started fast and to help take some or all of the burden of dealing with the blockchain and bitcoin volatility.
In recent years many companies have come along to help the merchant get started fast and to help take some or all of the burden of dealing with the blockchain and bitcoin volatility.
Direct Payments
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Difficulty - Simplest Option
Hardware - Device with Internet Cost - Cheap (Smartphone with camera) Choose a bitcoin wallet app and utilize it for all sales. While the app will record the time and amount transferred, nothing else is provided. (recipes, tax, tip, etc) Therefore this method is not recommended for major stores and merchants. |
Third Party Processors
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Difficulty - Easy
Hardware - POS and online integration available Cost - Cheap to moderate (Depending on hardware needed)
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Caution should still be used when utilizing a third party processor. While great for providing a service to exchange bitcoins for dollars, it is not recommended to store bitcoin in a payment processor for extended time frames as they are not regulated and insured by the FDIC, as is expected for traditional banking. With Bitcoin, the owner is ultimately responsible for knowing where their bitcoins are and how they are controlled.
This is a fast pace and growing industry. Every month an exchange or payment processor is coming out with new technology and new applications to assist merchants and consumers in the bitcoin ecosystem.
Coinbase
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Bitstamp
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BitPay
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Coinkite
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Learn More
Is Bitcoin Legal? |
Bitcoin Security |
Bitcoin Startups |
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