What are the Advantages and Disadvantages of Accepting Cryptocurrencies in Business?
Cryptocurrency allows for direct transactions with no third-party processors. The government doesn’t regulate or back cryptocurrencies. Cryptocurrency can be used to pay for your business, but it may also lower transaction fees.
This article was written for entrepreneurs and small-business owners who are interested in cryptocurrency payment.
With wild price fluctuations almost every day, cryptocurrency is everywhere. This medium of exchange has been around for more than 10 years and is finally making its way into the mainstream. Cryptocurrency can now be traded 24/7. According to data from Skynova, more than 30% of small businesses in the United States now accept it.
Is cryptocurrency the right choice for your small business? Before accepting cryptocurrency, there are many important considerations that you should consider. We will discuss all aspects of cryptocurrency small businesses should take into consideration and examine how blockchain startups are pushing the space forward.
What is cryptocurrency?
Cryptocurrency, a digital currency that uses peer-to-peer Blockchain technology to exchange money, is decentralized. This means that crypto is not regulated by any central bank or government. Without the need for third parties to process payments, buyers can transfer funds directly to sellers.
“Cryptocurrencies cut the middleman in transactions,” stated Chris Poelma the CEO and board director at PCS Software Inc.You don’t want to store your money in a place that is dependent on you or an organization to protect it. Instead, you keep it safe through encryption which only you have the key. We hear more stories about hackers and data breaches. Consumers looking for a safer way of doing business will find cryptocurrencies more appealing.
Many reasons might lead small businesses to accept cryptocurrency. It is at the forefront of technology, can be attractive to customers who use it, and eliminates fraud. Is it the right choice for you?
Advantages of accepting cryptocurrency
Cryptocurrencies offer many primary benefits over the traditional point of sale (POS) systems.
Fewer transaction fees
Without a central intermediary, transaction fees are dramatically reduced. Accepting credit card payments through credit card processing companies can often charge small businesses fees of between 25c and 4% for each swipe. These fees add up quickly, so smaller shops often require credit card minimum purchases on their POS systems. These costs can be reduced to less than 1% by accepting crypto.
Crypto’s decentralized structure also protects merchants against fraudulent chargebacks. Transactions are like cash and cannot be reversed by third parties. To protect your business from fraudulent chargebacks, learn more about credit cards receipt signatures.
Originally published on The Tech Trend