Is It Time to Accept Cryptocurrencies in Your Business?
Is it appropriate for your small business to take a similar approach? The answer is
highly dependent on your customer base, business model, and level of interest in cryptocurrency.
We will explain how to determine whether cryptocurrency is appropriate for your business.
Customers can pay with Bitcoin at Overstock, Dish Network, and AT&T. PayPal launched a
"check out with cryptocurrency" option in March, allowing users to pay with Bitcoin,
Litecoin, Ethereum, and Bitcoin Cash at merchants that accept PayPal Checkout.
The New York-based company Roadway Moving began accepting bitcoin payments in 2017.
The initial objective was to raise cryptocurrency awareness. Roadway's founder and president,
Ross Sapir, is a crypto enthusiast who began investing in the cryptocurrency in 2017.
Evaluate your educational trajectory
"I am a crypto enthusiast," Sapir explains. "Crypto adheres to my fundamental values."
Sapir was already knowledgeable about cryptocurrency prior to introducing it
as a payment method. However, many small business owners will need to
educate themselves about cryptocurrency before they can begin accepting payments.
A good starting point is to read a cryptocurrency guide.
Additionally, you should consult an accountant to ensure that you understand the tax
implications and reporting requirements associated with accepting digital currencies.
"For tax purposes, cryptocurrency is treated as property. As a result, each time cryptocurrency is
used, a tax realisation event occurs, potentially imposing administrative burdens on both the sender
and the recipient," Sung Choi, vice president of business development at Coinme, a digital
currency exchange, explained via email. "To avoid unnecessary complexity, it may be prudent
to restrict the use of crypto for payments to higher-value transactions, such as car purchases."
By definition, cryptocurrency is a form of electronic cash. While it is well-suited for
e-commerce businesses, Choi notes that it is less well-suited for traditional retail environments.
Take your business model into consideration.
"It's difficult to scale accepting cryptocurrency payments in a brick-and-mortar setting with
multiple employees and a large number of point-of-sale (POS) devices," Choi explained.
Accepting cryptocurrency made business sense for Roadway Moving because the
company handles international moves and jobs worth five or six figures on occasion.
"It's a straightforward process. It is a quick procedure. This is a safe transaction.
Additionally, the fees are negligible," Sapir notes.
Bitcoin payments clear in minutes rather than days when they are made internationally, he explains.
"I am not concerned with funds being frozen or transactions being rejected."
Consider both sides of the argument.
Several advantages of cryptocurrency over traditional payment methods include the following:
No chargebacks: Payment disputes are a significant source of frustration for small businesses,
as they are responsible for both the refund and any chargeback fees incurred when a customer's
bank reverses a payment. Chargeback fees can range between $20 and $50 — and in some cases,
even more — depending on the payment processor.
Reduced fees: Cryptocurrency transactions typically incur a processing fee of less than 1%.
Businesses pay an interchange fee of between 1% and 3% per transaction on credit card
transactions, in addition to processing fees and other fees set by the merchant services provider.
Accepting cryptocurrency payments has a number of disadvantages, which include the following:
Cryptocurrencies do not allow chargebacks.
Customer transactions are not reversible, and only the retailer can issue refunds.
We hope you enjoyed watching and listening to this video,
Please let us know your opinion in the comments area below. If you found our content useful,
please like it and share it with your friends. Also don't forget to subscribe
to our channel and hit the notification bell for more crypto related contents...