Receiving and accepting bitcoin payments - what and how?

‍Isit safe to accept bitcoin payments?

Accepting and accepting Bitcoin payments is a modern alternative to traditional payment cards. While debit and credit cards are very common, it is not without its drawbacks. Payment card fraud is on the rise. Incidents include the theft of card numbers, security codes and sensitive personal information.

Bitcoin payments are a secure and attractive option. Because of its many benefits, some call crypto transactions the solution to banking problems. Cryptocurrencies are decentralized instruments, and user data is not stored in any database. This makes their direct leakage or indirect theft of account funds virtually impossible.

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Accepting and accepting bitcoin - why is it worth it?

Accepting bitcoin payments in a stationary or online store is a whole range of benefits for the seller and the buyer. As an entrepreneur, you can take advantage of the growing popularity of cryptocurrencies to increase turnover in your business. As a customer, you gain the option to pay with modern coins - quickly and anonymously. See why you should start accepting bitcoin transactions in your business.

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Bitcoin payments - benefits for the seller

• Fast payment. Bitcoin payments are posted to the block in a short time - you can check out in just a few minutes
• No chargeback obligation. An accepted Bitcoin payment cannot be reversed. This means goodbye to hesitant customers - once accepted cryptocurrency belongs to the seller
• Wider customer base. As bitcoin becomes more and more popular, accepting payments in cryptocurrency makes the company's offering attractive to a wider range of customers
• Free and effective advertising. A stationary or online store accepting Bitcoin, can be marked on a special map. As the crypto sector continues to grow, businesses accepting Bitcoin stand out from the competition. So you gain free advertising that will reach members of the active cryptocurrency community

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Bitcoin payments - benefits for the customer

• Full security. Bitcoin transactions are anonymous and decentralized, so there is no risk of leaking personal information. This is a particularly important point in the financial sphere. Crypto transactions provide anonymity - a value that is highly desirable in the age of the Internet
• Speed and simplicity. Paying with Bitcoin is as fast and convenient as using a payment card or BLIK code
• Opportunity to realize profits. Consumers who invest in cryptocurrencies gain the opportunity to realize the profits earned - they can exchange coins for tangible benefits, goods and services 

If, after reading these benefits, you want to accept BTC transactions, take a look at the detailed guide on how to start accepting bitcoin transactions.

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What does a bitcoin transaction look like for the customer?

From the point of view of a customer visiting your store, payment in Bitcoins is intuitive and fast. In essence, it is no different to a transaction using a payment card, bank transfer or BLIK code. After adding products to the shopping cart, the shopper selects Bitcoin as the payment option, completes the transaction in the app he or she uses, and that's it! The store automatically receives a confirmation back, and in the admin panel you see the details of the transfer. Some plugins automatically convert some or all of the BTC to traditional currency, which further streamlines the process of accepting Bitcoin payments.

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Get your store ready for bitcoin payments

If you want to accept and accept bitcoin payments in your store, you need to prepare accordingly. Fortunately, implementing support for popular cryptocurrencies is very simple and does not require specialized knowledge. There are various solutions on the market. Some Bitcoin payment intermediaries charge a small commission, while other plug-ins are completely free. With our tips, get your stationary or online store ready for Bitcoin transactions today.

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3 ways to accept bitcoin payments in an online store

BitPay

BitPay is a Bitcoin payment processor that operates in more than 200 countries. It was created by computer scientists with extensive experience in blockchain technology. BitPay quickly processes cryptocurrency transactions, and the accepted payment can be converted into local currency. The module charges a small transaction fee. Funds are transferred to the designated bank account the very next day.

(Making online payments with BitPay's online store module;
graphic source: https://bitpay.com/online-payments)

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(generating email billing with BTC payment option via BitPay;
graphic source: https://bitpay.com/billing)

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(Admin panel for business customers using BitPay;
graphic source: https://bitpay.com/business/) 

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On the other hand, if you want to learn how to start accepting bitcoin payments in your own business, take a look at the guide on the subject.

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Advantages of Bitpay

• Plugin ready to integrate into your online store interface 
• Cooperation with the most important e-commerce platforms (Shopify, WooCommerce, PrestaShop, Magento)
• Option to accept and accept bitcoin payments in email settlements
• Dedicated app for Android and iOS, which can also be used in stationary stores (BitPay Checkout)
• 1% commission on each transaction

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Coinbase Commerce

One of the largest cryptocurrency exchanges in the world has prepared its own payment processor that you can integrate into your e-commerce. Coinbase Commerce is an applet for receiving and accepting bitcoin transactions directly on your store's website. An intuitive dashboard allows you to quickly manage the transactions being processed. Although Coinbase Commerce charges a commission, in return it offers seamless transfers and additional features, such as analytical accounting reports. 

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(Making BTC payments using Coinbase Commerce in an online store;
graphic source: https://ecommerce-platforms.com/finance/coinbase-commerce-review)

(BTC payment via Coinbase Commerce directly from the shopping cart in the online store;
graphic source: https://commerce.coinbase.com)

(Coinbase Commerce Dashboard, which is a dashboard and transaction control for the merchant; source of the graphic: https://commerce.coinbase.com)

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Advantages of Coinbase Commerce

• Fast processor integration with Shopify and WooCommerce platforms
• Access to a dedicated wallet (hot wallet) where you can store your customers' deposited coins
• Possibility of withdrawal of received funds to a designated bank account maintained in traditional currency
• Extensive graphic customization options for Bitcoin payment buttons on your e-commerce store
• 1% commission on each transaction

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CoinGate

The third proposition is CoinGate, an advanced processor that allows you to accept and accept Bitcoin payments. It offers fast non-reversible transactions and a fair amount of automation of activities. Using CoinGate, you can issue one-time or recurring bills, send them to your customers and receive funds in Bitcoins.

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(BTC payment via CoinGate e-commerce store;
graphic source: https://www.drupal.org/project/coingate)

(Vendor panel in CoinGate module;
graphic source: https://www.drupal.org/project/coingate)

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Advantages of CoinGate

• Option to connect the plugin to the interface of a store set up on Magento, PrestaShop, WooCommerce and other platforms
• User-friendly, easy-to-read navigation interface
• Accepting Bitcoin and 50 other cryptocurrencies payments and withdrawing funds in the traditional or crypto currency of your choice
• Custom configuration options for billing and payout splitting
• 1% commission on each transaction

Want to learn more, take a look at the guide to Accepting Bitcoin Payments.

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Accepting bitcoin transactions online without commission

If you still don't know what to choose, you can try a module for accepting bitcoin payments that doesn't charge any commission. Although such solutions offer only the simplest functionality, they will be completely sufficient for small e-commerce entrepreneurs. They will be good at least for a start. We recommend two processors for accepting Bitcoin with 0% commission - Bloconomics and BTCPay.

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Bloconomics

Bloconomics is a free module for stores built on WordPress or other popular engines. The plugin generates a personalized QR code for the customer. Once the transaction is approved in the block, the payment is automatically accepted. Bloconomics is distinguished by its simplicity and lack of intermediaries - the customer does not leave the store, and the cryptocurrency goes straight to the merchant's BTC wallet.

(Bloconomics functionality without commission - module for e-commerce and email billing;
graphic source: https://www.blockonomics.co)

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BTCPay

BTCPay is a cryptocurrency payment server, developed under an OpenSource license. It is therefore 100% free. As with its predecessor, the crypto goes straight to the merchant's wallet. BTCPay can be easily integrated with an online store built on Magento, Presta, Drupal, WooCommerce and other platforms.

(Online transaction in Bitcoin with BTCPay's commission-free processor; graphic source: https://btcpayserver.org/pl/)

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Accepting bitcoin transactions at a stationary store

The easiest way to accept Bitcoin transactions in a stationary store is to provide customers with a special QR code. The shopper scans the QR code with the camera on his device, and this way his app reads the address of the seller's Bitcoin wallet. In essence, the QR code can be printed on an ordinary piece of paper, but a much more convenient way is to use a dedicated POS app or XPOS cryptocurrency terminal.

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POS applications for in-store bitcoin payments

Special POS apps are installed on a smartphone or tablet. Once activated, they generate a QR code, which the merchant makes available to the customer. After scanning the code, the buyer makes payment at the current Bitcoin exchange rate. Importantly, almost all of the apps available on the market have an automatic conversion function built in. This means that the customer pays in BTC and you receive the funds in the store's currency, such as PLN, EUR or USD. The most popular POS apps for Bitcoin are BitPay Checkout and CoinGate. There are also modules that offer 0% commission, such as AnyPay.

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XPOS terminals for bitcoin transactions

Cryptocurrency terminals are a fast-growing industry. The devices look like traditional payment terminals, but have a different functionality - they accept Bitcoins. Three stable and smoothly operating XPOS solutions are noteworthy:

• Salamantex is an Austrian incumbent brand that provides terminals for cryptocurrencies
• PundiX, Venezuela's famous provider of crypto terminals that accept bitcoins and a wide variety of altcoins
• EletroPay is a unique terminal with a built-in printer for payment acceptance confirmations Its screen resembles an ebook reader. Interestingly, the EletroPay device provider does not charge any transaction fee. The only cost to the vendor is the purchase of the device

(Various models of XPOS terminals for BTC payments at stationary stores;
graphic source: https://www.salamantex.com/, https://www.pundix.com, https://eletropay.com)

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You've received a new bitcoin payment - what's next?

If you have provided your customers with the option to pay for goods or services in Bitcoins, you are growing your business and have several options for moving forward. Once the transaction is confirmed and the cryptocurrency is in your wallet, you can:

• Treat bitcoins as an investment and store them. Then price fluctuations and market liquidity don't matter. You simply accumulate specific coins and wait for their value to rise. This way you make money not only by selling, but also by investing in the cryptocurrency
• Select a plug-in that automatically converts completed transactions in Bitcoins to the currency of your store. The money in this form (e.g. PLN or EUR) is paid to the designated bank account in a short time, usually within 1-2 days
• Opt for the split option, that is, keep part of the proceeds in Bitcoins in your crypto wallet, and exchange the rest for traditional currency and transfer it to your company account

(Processing of new bitcoin payment by payment processor - 3 methods)

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Who accepts Bitcoin payments?

Before you introduce Bitcoin to your business, you're probably wondering what other corporations have already accepted cryptocurrencies? Check it out in the article Who accepts Bitcoin payments in 2022.

Accepting Bitcoin payments in the long run

Enabling a plug-in for paying with Bitcoin is one thing, accepting such transactions in the long run is another. As an entrepreneur, examine some additional issues. Prepare for an increase in interest in cryptocurrency payments and plan in advance for ways to accept and store BTC securely. We've prepared some hints so you can use Bitcoin payments to grow your e-commerce.

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Bitcoin payment confirmation

Remember that accepting payments in BTC requires the time necessary to confirm the transaction. Instant Bitcoin transfers are generally less secure. Of course, after just a few seconds, the client's application shows that the payment has been made and this proves its authenticity. However, until the coins appear in the block, the transaction is reversible. That's why safely accepting BTC payments always includes waiting for confirmation - usually up to 10 minutes. 

If you don't want to wait, you can use double spending detection systems. Some plugins need 2 confirmations to consider a transaction as accepted. For large amounts, it's worth waiting for 6 or more confirmations. Each additional confirmation theoretically reduces the possibility of withdrawing the transaction. You gain complete certainty when the coins appear in the block - then the client has no possibility to undo the transfer. 

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How do you safely store BTC after accepting it?

When accepting Bitcoins, take care to store them safely. For this purpose, you can use two types of external cryptocurrency wallets - hot wallet (remain online) and cold wal let (offline only). The role of a hot wallet can be performed by one of the popular applications. Unfortunately, by storing your earned coins this way, you run a risk, as the device is connected to the network all the time. For entrepreneurs who are implementing accepting Bitcoin payments in their store, we recommend offline wallets.

Hardware wallets, or advanced and secure cold wal lets, are slightly more expensive, but work without an internet connection. In appearance, they resemble ordinary flash drives, but thanks to unique encryption methods, the keys to read your bitcoins are safe on them. 

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Bitcoin payments vs. tax

Will bitcoin payments be taxed?

The current tax law in Poland stipulates that the mere acquisition and possession of cryptocurrencies is not taxable. Only the entrepreneur or individual who earns income from cryptocurrency trading has to pay the taxpayer. If you accept and accept payments in Bitcoins for your goods or services, these transactions are not additionally taxed. Of course, you must remember that the income you earn from your business must be reported on the appropriate US tax return for your industry. 

Should I settle any tax after accepting bitcoin payments?

Accepting Bitcoin payments you do not have to account for any tax, except for the rules for taxing income from your business. The obligation to pay tax on Bitcoin rests solely with individuals or entrepreneurs who earn income from cryptocurrency trading. If you acquired Bitcoins and after some time exchanged them for traditional currency at a more favorable rate, this would lead to your enrichment. The income you received would have to be reported on your PIT-38 return, and thus a 19% income tax liability would arise.

Adopted Bitcoin - selling in Bitcoin ATM

Accepting and accepting bitcoin payments in stationary or online stores is the solution of the future. More and more people are looking to purchase goods or services using cryptocurrencies. Some intuitive modules automatically convert the received Bitcoins into traditional currency. Of course, you can also decide to keep coins in your wallet and start the adventure of investing. Either way, you will be helped in realizing profits by Bitcoin ATM. With BTC ATM from Shitcoins you will quickly withdraw Bitcoin in PLN, EUR or other popular currency without registration.

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For more on this article, visit the Bitcoin Payments page.