An increasing number of US businesses are accepting cryptocurrency as a form of payment, and there are good reasons why. For one thing, it serves to give businesses a competitive advantage. More than ever, customers want to pay for their goods and services their preferred way; to people who are true crypto believers, that means paying using cryptocurrency. Being Accepting Crypto Payments is also an essential part of this trend.
By accepting cryptocurrency payments, your business can tap into new audience demographics and show yourself to be an innovative, future-focused business.
Throw in the fact that fees for accepting cryptocurrencies are lower than those of other payment types, and it’s easy to understand why businesses are increasingly crypto-friendly.
Eager to be a part of the crypto-revolution yourself? In this post, we’ve put together a few handy tips that’ll ensure your venture into the world of cryptocurrency payments is an out-and-out success.
Understanding the importance of Accepting Crypto Payments can help your business stay ahead in the market.
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Choose the Right Payment Platform
One of the reasons why so many businesses now accept cryptocurrency payments is because, well, they can. It’s long been possible to let your customers pay via crypto, but it wasn’t easy to do so in the past—quite the opposite.
Today, several user-friendly crypto payment processors are easy to set up and maintain. Once you have, you’ll effortlessly be able to accept payments. Just note that you’ll need to compare the different payment processor platforms available and decide which one is best for your needs.
Figure Out Which Cryptocurrencies You’ll Accept
Did you know that there are more than 11,000 cryptocurrencies? Of course, you don’t need to accept all of them at your business — in fact, you should probably only take a tiny percentage of them. There’s no need to receive more than five cryptocurrencies, and even that might be too many.
You’ll need to determine which cryptocurrencies to accept before proceeding too far along the journey. We’d recommend accepting Bitcoin, Ethereum, and stablecoins that are tied to fiat currencies (such as USDC or EURC).
That should cover it, though you can always accept a cryptocurrency that you’re personally fond of!
Have a Plan For Converting to Currency When Accepting Crypto Payments
Part of the reason businesses have been hesitant to accept crypto payments is that the value of the crypto might have fallen by the time it’s converted into cash. You might sell a $100 product via cryptocurrency, but if the value of the coin drops and is now only worth $88, you’ll have lost $12.
The best way to avoid this issue is to have a plan for converting the crypto into fiat currency. Many payment processors do this automatically, so you can have peace of mind that your $100 is safe.
Tempted to hold on to a cryptocurrency in case its value increases? As a general rule, it’s best to convert the vast majority of your crypto into fiat currency.
With that said, if you have a high risk tolerance, then it can be worthwhile keeping some of your crypto. Keeping 10% or so can be the sweet spot between taking a gamble that might lead to significant gains while also maintaining your cash flow.
Checking Payments When Accepting Crypto Payments
It’s great to make a sale, not-so-great if the payment doesn’t actually go through. When a customer tries to pay with their credit card, you’ll know immediately whether the payment has been sent to your account.
When a customer pays with cryptocurrency, that’s not always immediately obvious. At the same time, you might take a leap of faith that the customer is honest and allow them to walk away with the product before checking the status of their payment later on.
That approach puts too much trust in the goodness of your customers, and if you’re selling high-value products, that’s a risk you can’t take. Working with a company that offers a block explorer as a service will allow you to verify transactions, which in turn can minimize risk and enhance the customer’s experience.
It’s an easy way to speed up the transaction process and achieve peace of mind.
Talk With Your Tax Professional
Accepting cryptocurrency payments can be a helpful way to drive your business into the modern age. Unfortunately, the world —especially the tax world — hasn’t quite caught up with the complexities of cryptocurrency payments just yet.
As such, it’s generally recommended to speak to a tax professional who specializes in crypto-related tax matters. Cryptocurrencies can be taxed differently depending on the state in which they’re being received, and some cryptocurrencies are taxed differently than others.
It’s best to consult with a professional anyway. Still, it’s doubly recommended if you plan on holding a portion of the cryptocurrencies you acquire through payments, since this can impact capital gains/losses.
Train Your Staff Before Accepting Crypto Payments
Accepting cryptocurrency is easy once you know how to do it, but it’s a little more challenging than accepting card payments. The reason for that is that the majority of us have made countless payments with our cards and thus understand how that works.
But paying for products and services with crypto? That’s a new one. Educating your employees on how to accept payments is key, as is outlining any common issues that customers may experience and how to solve them.
Even people with in-depth knowledge of crypto may struggle with payments, so assume some of your customers will need assistance.
Let Your Customers Know You Are Accepting Crypto Payments
Your business might be accepting cryptocurrency payments, but unless your customers know about it, you can’t expect too many of the benefits to come your way. Informing your customers that you’re now accepting crypto payments is also an easy marketing victory.
Blog posts, press releases, and social media posts outlining the cryptocurrencies you’re not accepting (and why) can be a good way to snag some attention.
If In Doubt, Consult With an Expert
Finally, want to accept crypto payments, but don’t know how? Please consult with an expert; they can assist in getting your cryptocurrency payment systems up and running.
Conclusion: Accepting Crypto Payments For Your Small Business
Accepting crypto payments can expand your reach and make it easier for customers to buy from you. With more people using digital currencies, adding this payment option keeps your business current and can help you stand out from competitors.
Crypto transactions often process faster and carry lower fees than traditional methods, which can help your bottom line. They also provide strong security, reducing the risk of chargebacks.
If you’re ready to take this step, review each provider carefully and consider how crypto fits with your business goals. Trying new payment options shows customers you’re adapting and ready for the future.
