Cryptocurrencies come in many different forms, each with their own names and stories, from Bitcoin to Litecoin, Ripple, Ethereum, and more. And the ways in which cryptocurrencies work can appear quite complex from the outside, but they’re essentially made up of nothing but binary computer data that can be used for secure and anonymous transactions in the digital world.
In recent years, more and more people have been investing in cryptocurrencies and wanting to use crypto to make payments online. This has led to a rise in demand for crypto merchant accounts and crypto merchant services for businesses all over the globe, and this guide will explain what crypto merchant accounts are and how they work.
Before we look into how crypto merchant accounts and services actually work, it’s important to understand the impact and significance of the crypto industry as we know it. It’s a young industry, with the biggest and most successful form of crypto – Bitcoin – only being released in 2009. However, it’s a rapidly-growing industry, with many forms of crypto seeing huge surges in valuation from one year to the next.
The history of cryptocurrency actually goes back to the 1980s, with American cryptographer, David Chaum, creating the world’s first form of electronic money known as ecash. Other cryptographers experimented with the concept in the years that followed, but it was only in 2009, with the release of Bitcoin, that the general public began to become aware of crypto and take more of an active interest in it.
Since then, countless more cryptocurrencies have been released and crypto markets have grown exponentially, with crypto gradually becoming a more widely-accepted form of payment and many business getting ahead of the game by setting up crypto merchant services and platforms to accept crypto payments from their customers.
So what do we mean when we talk about crypto merchant accounts? Well, in general, a merchant account is a business account that is designed to allow a business to receive electronic card payments. So, a crypto merchant account can make it possible for your customers and clients to pay you online with their credit or debit cards.
There are also other crypto merchant services out there that exist to make it possible for a business to directly receive and process crypto payments. So, if you’re running a business and want to make it possible for people to pay you in crypto, like Bitcoin, you’ll need to acquire the correct accounts and services to make this happen.
It’s important to note that cryptocurrencies are gaining a lot of popularity in today’s world, with more and more people investing in the likes of Bitcoin and Ethereum, among other forms of crypto, and wanting to use it more regularly in their day to day lives. So, for any business owner, having the right crypto merchant accounts and services is really essential.
So, if you want to set up a crypto-oriented business of some kind or accept crypto payments online, it’s clear to see that you’ll need to have the right crypto merchant accounts in place before you start. These accounts and services will make it easier for you to get paid and grow your business. Unfortunately, getting one of these accounts isn’t as easy as you might expect.
In fact, if you try to get a crypto merchant account or any kind of crypto merchant services at your usual local banks or financial institutions, you may get rejected over and over again. This is because many banks see the crypto world as being too “high risk” for them to work with, so they prefer to not offer any kind of crypto merchant accounts or services, at all.
Part of the reasoning behind this is the fact that cryptocurrencies are still relatively new, and many of them are highly volatile and unpredictable, too. While Bitcoin and Ethereum are examples of success stories in the world of cryptocurrencies, there are many other currencies out there that have infinitely smaller values and fail to attract big crowds of investors.
All of this can cause problems for banks and payment processors, as there’s a lot of risk of certain crypto businesses failing or the values of their cryptocurrencies changing drastically in short spans of time. This can lead to a lot of issues for the banks involved. There’s also a risk of chargebacks with crypto merchant accounts if customers are unsatisfied with the cryptocurrencies they invest in and want to back out.
It’s clear to see that having crypto merchant accounts is key for crypto-focused businesses, but, as explained in the previous point, many banks will flat-out refuse to work with crypto companies, due to the various perceived risks. We can expect this to change in the future as crypto becomes more of a part of regular society, but what can you do in the meantime if you need a crypto merchant account for high risk credit card processing?
Well, Shark Processing is here to help you. We specialize in high risk merchant accounts and high risk payment processing, and we work exclusively with high risk businesses like yours to help you find the merchant accounts and services you need. In short, we can assist you in finding the best possible crypto merchant account, with the right rates and finest levels of customer service.
We work with a large network of trusted banks and payment partners around the world to provide the right solutions for our clients, and our team of experienced financial experts is standing by, ready to help. Get in touch with Shark Processing today to find out more about how we can help you find and open your own crypto merchant account.