If you have a merchant account with one of the leading electronic payment processing companies such as Neteller, WorldPay, Paydotcom or PayPal then you know how convenient and fast money transfers are when using their services. In fact, they are bitcoin payment processor revolutionizing the way people pay for items and goods online. You will always get a quicker transaction and more security when you choose to do business with them. However, what if you want to make a bigger investment? Well, there’s always the option of getting in touch with a professional currency trading software provider to help expand your business and take it to the next level.
Top 7 Bitcoin Payment Processors The top 7 best bitcoin payment processors available are: CoinPayments, Paydotcom, WorldPay, PayPal, Webayi and Xoom. All of these offer numerous pre-built merchant applications and plugins that you are able to use for your online store. They also provide many pre-built shopping cart plugins which you are able to use either for your own merchant store or for other customers who would like to purchase products from your online store. However, before getting any further about the different plugins available for these wallets, you need to know about the different types of transactions that are possible through the software.
Conventional Commercial Transactions One of the most common types of transactions is to receive payments in a conventional format such as in the form of wire transfers or credit card payments. However, many merchants nowadays are using the latest techniques of bitcoins payments, which is known as micropayment. Micropayment involves your service provider transferring the amount that you’ve ordered to your account minus the transaction fee. This is much more convenient compared to making a wire transfer, because you do not have to pay any extra fees for it. Furthermore, using bitcoins for this type of payments have become increasingly more popular among many merchants.
Private Label Distribution You can also use bitcoins for private label distribution. This involves selling some part of your business for instance your own personalized t-shirts and other promotional items. However, since this method is still new, there are not many people who are willing to risk their money for it. As an alternative, there are now several companies offering the service of private labeling using alfacoins. These companies usually take care of the process of private labeling and alfacoins as well, so that they can make payments for the goods that they sell without having to rely on traditional payment processors.
Free Transactions There are also some disadvantages associated with using alfacoins as a form of payment processor though. Since you’re only allowed to transact with these alfacoins after spending some real money, you’re limited in the number of transactions that you could perform each day. This is because you have to pay a transaction fee every time that you conduct a payment. This transaction fee eats up a portion of your potential income and force you to consider these kinds of offers. If you’re going to go for the free transactions though, you’ll be charged a transaction fee.
Limited Options One of the most important drawback that you encounter when you choose the bitcoin payment gateway route is the limitation of currency pairs that you could trade. With a typical payment processor like PayPal or WorldPay, which allows you to transact in numerous currencies, you have the liberty to choose which currencies you want to transact. With bitcoins, you’re not so free to do so. You can’t trade in three of the four major currencies. It’s because these particular currencies are considered to be high risk investments by the main distributors of these coins.
Another problem that you will encounter is that there aren’t enough merchant accounts that provide service with these types of gateways. Usually, it’s not easy to find a good gateway service that will allow you to transact in this one type of currency. There are lots of solutions that offer this service but they all charge a fee for their service. If you go with the popular bitcoin exchange platform coinage, then this is not a problem since they are the ones who will facilitate your transactions in the two other major currencies as well.
Limited Solutions There are also problems that may arise when using the bitcoinpayments. Since they charge a fee for the service that they render, there is no way that they can accommodate lots of merchant requests. Also, if you think about other electronic payments, like the credit cards that many merchants use today, they too have limitations on the number of card account that they can maintain. However, with the bitcoinpay gateway, you are confined to only a couple of choices.