Sometimes people will arrive at your checkout but not be able to use their usual payment method. This might be because the country they’re in doesn’t have great coverage with your card processor or they want to use a digital wallet. You’ll need a way to accept cryptocurrency online and know which order it relates to.
A crypto payment platform can help you accept crypto payments without having to build anything from scratch. Depending on the service you choose, you’ll be able to generate payment requests, track transactions on the blockchain, currency convert payments and log completed orders.
It’s not trying to replace other payment methods, but offer an alternative that works for those customers who want to use it.
Table of Contents
Start with the issue you want to solve
Look at your checkout data. Are customers from outside of the country leaving because they don’t have access to their preferred payment method? Are clients asking to pay invoices from their wallets? Are you selling digital products and need fast payment confirmations?
Write a payment use case that explains why you need to accept cryptocurrency on your website. Perhaps you have an overseas client base so would like to receive payments in crypto and convert to your working currency. Or perhaps you sell software and want customers to be able to pay using a payment link meaning each transaction can be related back to a subscription or order number.
This will help you understand which features you should look out for. Crypto payment platforms used by businesses for large transfers might not be suitable if you’re taking lots of small payments.
Know what happens after payment
For payment to be smooth for your customers you need to know whether they’ve sent the correct asset on the correct network.
A typical payment flow would be:
- An order is created in your store with a price and order reference
- The service shows what currency, network and how to pay
- Customer approves sending from a compatible wallet
- The service identifies the payment and waits for confirmation
- Your order system shows the order as paid and ready to fulfill.
What happens if the payment is made late, incomplete or incorrect? You don’t want customers thinking they have paid but your system shows them as unpaid.
Decide what you want to receive
Some services will send the asset to a wallet you have control over, while others will convert the payment for you. Depending on the crypto service provider you choose and your location, you’ll have various options.
If you pay your suppliers/staff in local currency then converting might be preferable. This means you’re receiving less fluctuation in price between when you make the sale and when you pay. Check what rate you’re getting, what the conversion fee is and when you’ll get paid.
If you want to keep your digital assets then check who has control of the wallet keys. Also check which networks your crypto payment solution supports. Sometimes there will be two assets with similar names but they are on separate networks.
Work out the total cost
Just because there is a transaction fee advertised doesn’t mean it’s the only cost. Look at the difference between what the customer is paying and what you’re receiving. If there are any conversion spreads, network fees, payout fees and minimum payouts then take these into consideration.
Take the same example for all services. The customer is paying for an invoice worth $200. Record the quoted payment fee, the conversion rate and the final amount credited to your account. Repeat the calculation for a $20. Fixed costs can impact lower value payments.
Check who is paying the blockchain network fees. These can vary depending on how busy the network is. A service that looks cheaper for one payment amount could be more expensive.
Keep it simple
You should be able to explain how your payment provider crypto integration works in a couple of sentences. Customers should know how much to send, what network is supported and how long it will take to confirm their order. If it’s complicated then you may get more orders failing and support requests.
If you want to accept payments in cryptocurrency on your website then check there is a working plugin available for your ecommerce system. Check how regularly it’s updated and try the payment on mobile. If you have a small business then a hosted payment page might be easier, or if you want more control then an API.
If you just want to accept crypto payments online then you may just need an invoice/payment link. Ensure it has the correct customer reference and that you have an accurate record.
Security and controls
Don’t just look at the checkout. Find out if the crypto service holds customer/merchant funds. What security measures are in place? Who can change payout addresses and do they have to have extra approval?
- Look at what tools you’ll have to use daily.
- Payment updates that won’t cause duplicates
- Exports so you can use for accounting and reconciliations.
- Easy to follow processes for failed, late and incomplete payments.
- Controls for your staff to process refunds/settlements.
- Support options for any payment issues.
Crypto payments generally can’t be reversed like card payments. Refunds are often a separate transaction. Check with your provider what their refund process is. Also ensure you have a clear policy and include it in your checkout terms. Check if there are any legal, tax or verification requirements in your location.
Try a small test
Try going through the whole process with a low value order. Open your checkout on your phone and select one of the supported wallets. Complete the payment. Check that the order status doesn’t update until the service has identified it as a successful payment.
Try using an expired payment request and cancelled order. Check what the customer sees and what is shown on your dashboard. If you’re using auto fulfillment then check that you can’t send the product until the payment has been verified.
Download the transaction report. Check that it matches with your order list in your store. If they can’t be matched without manually checking then you may have issues as your volumes increase.
Ensure the crypto payment provider has clear guidance on how to fix any integration issues. Check the documentation and that you can get support if payments get stuck.
Choose what works for you
Ensure the set-up works for your customers, order volumes and accounting. Don’t go for the provider with the most features.
Start with 1 or a few currencies. See how many payments you’re getting, any questions from customers, how much you’re receiving and how long it takes to reconcile. This will show you if it’s helping you.
FAQs
Do I need to hold crypto?
Not always. Some providers will convert the customer’s payment into a supported currency. Check if this is an option for your business.
Can customers pay without having to create an account?
Depending on the payment flow some allow customers to pay using an existing wallet. Requirements will vary depending on the provider, payment method and location.
How do I compare a crypto payment provider with a normal gateway?
Look at who can use it, what the real costs are, when you’ll receive the money, how refunds are handled and what accounting information you have. Decide based on what payment issues you need to solve.
