Digital currencies were primarily claimed to replace fiat money as a payment option more convenient and beneficial for both sides. In 2020-21, the industry of crypto payments undergoes explosive growth due to a set of reasons. Some merchants understand the true potential of such an industry, while others just want to follow the trend. Nevertheless, digital currencies are about to be widely used by companies worldwide, and it’s high time to outline their profits for a business owner.
Crypto payments don’t need third parties to be involved. Meanwhile, merchants themselves want the procedure to be straightforward, easy-to-use, and legal. Businesses apply to crypto gateways that process all the inflows of digital currencies. Of course, providers don’t offer services just for a thank you. Processing commissions take place.
Is a crypto payment solution still beneficial for a merchant? Let’s compare traditional payments and the solution of the new generation.
Fees charged by debit/credit cards
MasterCard and VISA are the two world’s largest payment processing systems used worldwide. Which fees are suggested for buyers and sellers?
While speaking of average fees, those vary from 1.29% (+$0.05) to 2.54% (+$0.10) for both systems, but let’s dive into specifications.
When a buyer sends money through MasterCard or VISA cards, a 1% fee is charged – such a commission is entirely reasonable. Meanwhile, when two currencies do not correspond to each other (e.g., you send USDs, purchasing a good, priced in EUR), the interchange fee takes place (0.18% – 1.80%). Furthermore, a merchant may either withdraw funds or transfer them as well. He (she) is charged at least a 1% fee as well.
To sum up the commissions, the overall fee may reach 3.80%, and that is huge enough for money transferring.
What is the situation in the crypto market? Top-rated payment providers charge a 0.50% fee, implementing no additional commissions.
Limits for debit/credit card transfers
While transferring money through credit and debit cards, buyers cannot send unlimited amounts. Limits depend on a certain country and usually vary from $10 000 to $50 000. As such, every transaction tranche is charged all the fees independently.
As for the crypto market, no limits take place. Commissions are minimum, especially when huge transactions are done. For instance, when merchants accept Bitcoin payment, the average fee paid by a buyer is equivalent to $2.37, while the average transaction value is 3.80 BTC (equivalent to $215 763. As such, the commission is just 0.001%.
Since the maximum fees charged for a traditional transfer reach 3.80%, crypto payments imply commissions of up to %0.501 (about 8 times lower).
The importance of a reliable payment provider
The pros of cryptocurrency payments are evident, and crowds of new businesses have been joining the trend; meanwhile, business owners need a reliable provider of payments to move all the troubles and headaches aside.
B2BinPay matches this role perfectly. An industry-changing solution recognized as the best payment gateway for digital assets in 2021 – that sounds promising for merchants. More than 450 business owners have already got the opportunity to accept 800+ digital currencies. Furthermore, the gateway includes the possibility to receive fiat currencies automatically (converted and sent to bank accounts).
The choices we make today create the future we are dreaming of, and B2BinPay is ready to become your assistance in building the firm grounds for your ongoing success!