Digitalization and technology are fast taking over the world. These days most people prefer to purchase products and services which offer online payment options. Paying online is secure not just for the customers but for the company involved, too. There is a rising demand for online payments which is why an online merchant account is the best solution for your business.
Merchant and Companies Accepting Bitcoin and Altcoins
The use of cryptocurrencies in commerce is increasing and paying with cryptocurrencies is considered not only quick and instant but also more secure. It also affords anonymity to those who desire it as well as eliminating the possibility of identity theft.
These days, thanks to all the various payment gateways and exchanges, there are a lot of merchants who accept Bitcoin and other cryptocurrencies so there's no shortage of stores where you can spend your cryptocurrency.
Countless companies now accept Bitcoins in a wide range of services which include retail commodities, fashion, software, website content, domain name registries, VPN services, mobile gaming, dating sites, gifts, travel, and accommodation.
List of Companies and Merchants that Accept Bitcoins and Altcoins as Payment Methods
Overstock.com e-retail shop lets you pay for home products, clothing, furniture, electronics, décor, baby items, and accessories using Bitcoins, Ethereum, and over 40 other altcoins through their partnership with ShapeShift.
Microsoft company has been accepting Bitcoin since 2014. You can purchase loads of content in the Xbox and Windows stores. Dell is another company that also accepts Bitcoins.
PayPal announced their partnership with BitPay, GoCoin, and Coinbase in 2014 when they started accepting Bitcoins.
Intuit accepts Bitcoins and other cryptocurrencies such as Litecoin, Ethereum, Monero, Dash, and the new Bitcoin Cash.
Blockchain.info announced in January 2017 that they have started offering their users the ability to buy and sell Bitcoin and were planning to add other currencies in the coming days.
4chan.org and WordPress began accepting Bitcoins back in 2012. And the next year, companies like Namecheap, Reddit, Pirate Bay, EZTV, and OkCupid started accepting Bitcoins.
There are a whole lot more companies and merchants who accept Bitcoins and Altcoins as payment methods including Wikipedia, Bloomberg, PureVPN, Expedia.com, Shopify.com, ExpressVPN.com, Polish Airlines, Poland-based LOT, Lionsgate Films, and Virgin Galactic among others.
Getting a Merchant Account
The entire payment process is automated through a merchant account, from the time the credit card is received, to when it's verified, and the funds are transferred to the company from the customer's account.
It's important to give your customers various payment options by opening a merchant account. However, some businesses such as those that specialize in collectibles or the sale of silver coins and gold coins may not be able to get merchant accounts due to their risky nature.
Not being able to provide your customers with an option for online payments could limit the demand for your products. No matter the reason why you failed to get a merchant account before, we are here to provide you with the service you need.
At GAM Payments, we can help you open a merchant account with our company so that you will be able to give your customers payment options which include credit cards, electronic checks in person, online, or even via email.
Obtaining a Precious Metals Merchant Account
If you are a precious metals vendor, getting a merchant account for selling precious metals is easy when you apply with a high-risk merchant services provider. As an industry, precious metals vendors are considered by credit card processors to be extremely high risk.
This is because of the very nature of the product as well as the large transaction sizes. Another reason they are considered to be high risk is that there is a high potential for accusations of fraud or use of fraudulent materials. Businesses in this industry also experience a ratio of chargebacks that is higher than average.
These reasons and more are why financial institutions like your local bank or other payment aggregators will not render credit card processing services to precious metals businesses. This means that these kinds of businesses have to apply with high-risk merchant account providers like us.
What’s the Difference Between a High-Risk and Low-Risk Merchant Account?
There isn't much difference between the two from the perspective of both the business and the customer. What happens with both types of accounts is that the customer pays with their debit or credit card, the payment is processed by the credit card processor, the money (minus the transaction fees) gets deposited into the company's bank account.
The main differences are in the application, underwriting, and the risk side for the credit card processor. In the first place, a lot of low-risk credit card processors just won't accept payments from vendors of precious metals because they are not allowed by the rules of their bank sponsorship.
Also, there is little underwriting on the front end of the business if it's a low-risk merchant account. Conversely, for high-risk account applications, the processor will conduct a review of the business that is much more extensive.
Even after the application is approved, the risk department of the credit card processor still maintains an active role in monitoring the precious metals business. It's because of that extra involvement and oversight that the high-risk credit card processor charges a fee that is slightly higher than a low-risk provider.
High risk and low-risk merchant accounts are different in those ways, but from the customer's perspective as well as the daily running of the business, both types of accounts are basically the same.
How do I find a High-risk Precious Metals Merchant Account Provider?
Finding a high-risk precious metals merchant account provider is as easy as searching online. You will find a list of service providers who accept precious metals businesses. You can then compile some of the different options and apply online. After you receive quotes, you can then select the best service provider for your needs.
GAM Payments offers precious metals merchant accounts for a wide range of businesses in this industry. To get a high-risk precious metals merchant account, simply apply online and we will promptly review your application. If pre-qualified, a full contract will be provided with pricing and terms for review.
After you've signed the application, it will be submitted to the underwriting team at the credit card processor. Once your application is approved, you will be provided with all the hardware, payment gateway, and other setups you may require. And just like that, you're ready to accept credit cards and debit cards.
How do I get a High Ticket Approval?
High ticket simply means that you're likely to sell products that total in the hundreds or thousands of dollars regularly. Precious metals businesses typically fall into this category. Most high-risk merchant accounts and even low-risk ones limit the amount that you can accept from one single customer. If that limit is exceeded the transaction will decline.
So, in order to ensure that your precious metals business functions properly, you need to inform your high-risk merchant services provider when you apply that you will be selling 'high ticket' products with a high average transaction size so that you get approval for that range.
Look for the amount listed in the application as 'high ticket' and check if it meets your business's needs to ensure that you can accept payments from your customers for all your product packages.
How to Accept Bitcoin, for Small Businesses
Bitcoin is receiving a lot of acclaim as a way of conducting business transactions quickly and securely online. Small business owners who want to accept Bitcoin as payment for goods and services can do so easily by getting a coins merchant account.
Many governments and authorities have formally recognized Bitcoin as a currency, and when it comes to accepting payment, Bitcoin isn't any different than other forms of payment like cash, gift cards, gold, or foreign currency. When you start to accept Bitcoin in your business, use whichever manner keeps the accounting simple. This may vary according to the type of business you operate.
If you own a physical store, your customers can make payments via hardware terminals or screen apps. However, for your online store, accepting payment in Bitcoin is something that a skilled programmer should implement.
For smartphones or tablets, you can use a dedicated app that generates QR Codes including the amount. A lot of wallets support scanning of QR codes for payment. If your business sells gift cards, it could be easier to accept Bitcoin only for purchasing the gift cards or gift certificates. The gift cards can then be used for purchasing your goods or services.
This makes the process easier for you and puts to use the accounting processes that you already have in place for the gift cards. By doing this you would minimize the accounting for the Bitcoins to just tracking sales of a single SKU. This is a method that is also ideal for convenience stores and retail establishments where paying for small things might prove disruptive especially when there are other customers waiting to be served.
In such cases, Bitcoin might best be used for reloading prepaid cards. If your business already accepts credit cards through a swipe terminal but doesn't accept gift cards, then you may want to consider using your merchant API to add a gift card system via the same swipe terminal that you're already using.
Bitcoin Income Taxes
Tax compliance is a very important topic for all small businesses. While it's impossible to give the proper accounting or legal advice here, it makes sense that you will have to pay taxes on your Bitcoin income the same way you do any other income.
Bitcoin transactions are like cash in that they are widely used, anonymous, and leave no paper trails and the rules that apply for cash transactions when it comes to tax should apply to Bitcoin transactions as well.
Bitcoin Companies Allowing Merchants to Accept Payments in Cryptocurrency
Here are examples of companies that provide simple and efficient ways for customers and merchants to perform secure, over-the-counter Bitcoin transactions:
Coinify is a company is a digital payment platform providing payment processing as well as trading services to consumers and merchants. They have a mobile platform which allows users to buy, sell, and accept Bitcoin payments in stores all over the world.
CoinKitehas a Web wallet system which empowers merchants and customers in buying, selling, accepting, and storing Bitcoins and other cryptocurrencies online and in the real world.
Coinbase provides Bitcoin wallet services for consumers and merchants to transact with Bitcoin.
BitPay allows customers to make transactions using Bitcoins which are then converted to cash. This company provides services for both online stores and physical stores.
Blockchain Merchant is a great POS (point-of-sale) solution for bars, restaurants, and all retail merchants who accept Bitcoin.
Revel Systems is an ideal POS solution for self-service kiosks, quick-service restaurants, retail outlets, and grocery stores in addition to other merchants.
BitXatm is a Germany-based startup that offers two-way ATMs that have POS functions. It's ideal for merchants who seek to accept digital currency payments from customers quickly and easily.
PayStand provides payment and e-commerce checkout services. It allows organizations to accept credit, e-checks, and Bitcoin without any fees.
Coin of Sale is a Bitcoin point-of-sale payment processing platform for retail merchants.
XBTerminal is a simple and cost-effective solution for merchants looking to start accepting Bitcoin immediately. The company provides a Bitcoin point-of-sale terminal allowing the merchant to accept payment from mobile bitcoin wallets by QR or NFC code.
Bitcoinpay.com provides worldwide instant payment solutions for Bitcoin. It's fast becoming one of the biggest companies when it comes to Bitcoin commerce.
A coin merchant account is a value-added service which helps you stand out from among all your competitors and create a vast network of satisfied customers. Considering the increasing popularity of online payments, and the security offered by blockchain technology, sooner or later these accounts will become a necessity for all businesses.
Whether you're selling food or buying bogla gold, you can't deny the benefits of being able to pay online. Now it's time to get started. When it comes to technology, it's better to be an early adopter than a laggard.
Act today! Invest in your business's future by opening a merchant account. GAM Payments will help you cater to all your customers' payment needs and make payment processing hassle free.