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What is the best way to choose a crypto Payments Service Provider

Nov 25, 2022

Let us guide you through the most crucial choices to make, as well as give you an overview of the capabilities that are available from a variety of varieties of solutions. We'll also help you understand some of the jargon we'll employ throughout the process.

The two ways of cryptocurrency transactions

If you are looking to allow cryptocurrency on your site, you generally have two choices:

  1. Crypto lite: If you'd like to take payments using cryptocurrency but aren't interested in that aspect, then this program is for you. Consider options that guarantee that you will receive the right amount of cash into your account as fast and as easily as you can.
  2. More: This category can be complicated in a short time. If you want to keep some or all of your crypto cryptocurrency and accept a wider variety of currencies or sell NFTs, then you'll need more expensive options.

The choice between custodial or non-custodial crypto payment service

If you're contemplating accepting cryptocurrency-based payments on your site The primary decision you'll need to make is to decide if you'd like to go with the custodial or not-custodial service.

It's an excellent idea to make a selection of "crypto mild" or "something different."

Custodial crypto payments providers

For many merchants, this solution provides security in addition to a experience that's well-known to customers. You'll have access to support along with terms of service, and you can benefit from other alternatives (such such as automatic settlements with your bank) because your service provider handles the crypto accounts for you.

If you want to pursue "crypto lightweight," custodial crypto payments service providers are your only alternative.

The advantages of Custodial Crypto Payments provider include:

  • Fully extended and integrated
  • Accepting one or more cryptocurrencies from clients
  • Directly to your bank account Fiat currency
  • Account access via an email and password
  • Support Services
  • The lowest transaction cost as well as the promise against chargebacks and reimbursements

Crypto payment providers that are not custodial services

If you're an expert at crypto but would like to have access to advanced features You may wish to consider a non-custodial solution. Non-custodial options can give you full power and control over the security and management of your accounts in crypto. This isn't something to do without thinking about it. However, for store owners who are qualified it unlocks the full possibility of crypto.

The advantages of an custodial provider of crypto payment:

  • You can access and manage your cryptocurrency as soon as you receive it - there's no need to wait to receive a settlement through a third-party.
  • Less restrictions on the conditions and terms. Nobody can cancel or cancel your account service.
  • These actions are subject to the laws in effect and to your personal capabilities. It is possible to sell whatever you want, and manage your cryptocurrency in the way you'd like.
  • It is the sole obligation of the security of your account - no hacker or data breach from third parties can affect your funds.

Crypto vocab check

Fiat Currency: Currency issued by a state (e.g. USD, EUR, GBP).

The expression "cryptocurrency" is a reference to The currency is secured using the concepts of cryptography (e.g. BTC, ETH, DOGE).

Stablecoin The type of cryptocurrency that's pegged to a fiat currency. (e.g. USDC (where USDC = 1 USDC equals one USD).

Features of a crypto payment service provider

There are plenty of choices to consider when selecting a custodial as well as non-custodial service.

Here is the full list of features and aspects that will help you understand the differences in the various options. If you're using this list, take note that the list is a general overview of what's likely to be provided. Some partners may not have all features.

Features Custodial Non-custodial
Contract in conjunction with a third-party Sign up for the services offered by a business that is subject to the conditions of the service. Y N
Account recovery
If you're unable to log in, you can get a password reset request or access recovery through the service company. 		Y N
Support
The user will have access to and receive support from the provider. 		Y N
Automatic exchange stablecoins or any another crypto
There is the option to convert your cryptocurrency into a stablecoin or another cryptocurrency. 		Y Y
Automatic exchange of fiat currencies
It is possible to opt for having your crypto automatically converted to fiat. Note that the calculation of exchange rates and rates can vary depending on the partner you choose to work with. 		Y N
Automatic settlement to your bank
You may decide to have the funds paid into your account automatically. 		Y N
Find the exact value of currency fiat
This can help avoid being exposed to fluctuation in the prices of cryptocurrency. Non-custodial solutions can reduce - but not eliminate - the volatility of cryptocurrency by permitting stablecoins. 		Y N
Specific characteristics for retailers
Certain providers provide features that make it easier for merchants to save time and effort. This includes things such as risk profiling (to assure that your business won't receive funds from bad actors) and security against payment overpayment or insufficient, along with emails for invoices. 		Y N
Transaction finalization protection
Blocks are generated to finish transactions. The greater the number of blocks generated following a certain process, the more secure the transaction. Protection helps avoid sending out goods and then having a reversed transaction. 		Y N
The insurance of funds
Custodial as well as non-custodial options are susceptible to hacking. The insurance on funds provides security for customers who use a custodial service. The protection is not the same for every client and it's important that merchants research their partner's insurance as well as reimbursement guidelines. 		Y N
Y Y
Supports subscriptions/recurring payments
People who pay using cryptocurrency must sign on every transaction. Therefore, recurring payments aren't an option. However, some custodial companies offer services to create and automatically mail invoices based on a schedule. 		N N
Low transaction costs
Non-custodial and custodial payment businesses typically have significantly lower charges for transactions (1-1.5 percent) than traditional payment companies (2-3.5 percent). 		Y Y
Exposition to crypto networks (e.g. gas) fees
Direct cryptocurrency transactions come with the benefit of their own network costs for use with Ethereum this being known as gas charges. Payment processors may absorb the fees, while others transmit them. 		N Y
Sole control
Only you are the one that can authorize transactions from your account. Nobody else can approve transactions without access to your private account key. 		N Y
Accept all cryptocurrency on any network
Payment processors that process crypto transactions offer a variety of currency and networks for cryptocurrency. Custodial services can only be used in the currency they accept. Other solutions are able to offer greater choices. 		N Y
integration
It's one thing when you receive an amount of money, it's another thing to identify which client is the one who made the purchase and also to determine for which purchase. Our partners offer strong integrations to cover all aspects from setting up to handling daily. 		Y Y

Explore your options, and then select the best cryptocurrency payment provider to run your business

The options for cryptocurrency can be confusing but it's worth it to create solutions that best match to yours and your customers' needs. Make sure you go through the advantages and disadvantages of the two types of cryptocurrency payment services, make note of which is the best fit for your business.

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