Economy
What’s the Difference Between a Bitcoin Merchant Account and a Payment Gateway
We expect many changes as time passes and various industries develop. Businesses are trying to approach financial management differently, as some are trying to shift from conventional payment systems to blockchain technology and digital assets. Companies are starting to modify their tactics to accept and manage payments made with virtual assets to stay up to date.
This change is not without its difficulties, though. It requires a careful evaluation of numerous variables and a clear comprehension of how they interact. In this article, we aim to draw attention to the important factors that must be taken into account when choosing the best Bitcoin merchant solution.
Essential Concepts in Crypto Merchant Accounts
A merchant account is a special location where companies can hold sales proceeds until they are transferred to their bank accounts in accordance with the conditions stipulated by the merchant service provider.
By creating a link between the business and the client’s bank, these accounts are essential to the efficient processing of card transactions for e-commerce enterprises. These accounts are particularly attractive because there are no processing costs, and cryptocurrency transactions are irreversible, especially in high-risk e-commerce industries.
Crypto payment gateways are connected to merchant accounts, which require thorough identity and business verification in order to conduct transactions. These gateways are essential for facilitating international payments, guaranteeing smooth financial transfers from customers to companies, and discouraging fraudulent activity. By confirming the authenticity of the customer’s card information and approving authorised fund transfers, they verify transactions.
Payment gateways allow companies to accept digital currency by acting as a link between blockchain technology and traditional banking systems. These gateways can use the blockchain network to validate transactions and convert cryptocurrencies into fiat money for an extra fee, which helps to stabilise the market.
The Collaboration of Merchant Accounts and Payment Gateways
When it comes to financial transactions, the procedure usually starts when the customer makes a payment. A processing engine then contacts the customer’s bank to obtain confirmation. The money is kept in the merchant account for a short while after verification and then sent to the company’s main bank account. The client’s information is collected safely and sent to their bank for verification. The bank checks the availability of funds and the validity of the card before approving the transaction.
The payment gateway is obliged to send this data to the bank. Interestingly, merchant accounts—especially those with Bitcoin—have made it much easier for customers and companies to transfer money. The buyer completes the purchase quickly after the payment gateway verifies that it is legitimate.
The Difference
Payment processing companies that accept crypto are essential to guaranteeing safe transactions between clients and companies. After a transaction, money moves from the card issuer to the bank of the merchant and then to the company’s main account.
A merchant account manages transactions made through a business bank, whereas a payment gateway controls the flow of funds during a sale. These elements are essential for handling credit/debit card and cryptocurrency payments, allowing companies to take payments securely and clients to make purchases with confidence.
Integrating Bitcoin Payments into Your Business
Benefits like cost reductions, streamlined transactions, and chargeback protection can be utilised to integrate Bitcoin payments into your business operations easily. Here’s how to get started, step-by-step:
Choosing the Best Crypto Payment Gateway: Make sure the crypto payment gateway you select meets your needs in terms of supported cryptocurrencies, transaction costs, security features, and customer service.
Creating an Online Store: Create a merchant account with the gateway of your choice, making sure it has all the features and capabilities your company needs.
Creating Digital Wallets: To effectively handle various digital assets, set up multi-currency digital wallets to accept Bitcoin payments and make it easier to convert them into fiat money when needed.
Activating BTC Payments: After integration and wallet setup are complete, notify your users that your platform now accepts Bitcoin payments and activate BTC payment options.
Some Additional Things to Consider
Take into account the following elements while choosing the best Bitcoin payment option:
Cost: Choose a payment method that offers fair transaction costs and strikes a balance between affordability and service quality.
Security Procedures: Make sure the payment method you select respects your privacy and has strong security features like encryption, 2FA, and cold storage options.
User-Friendliness: For maximum user convenience, consider a system that provides simple cryptocurrency selection, interoperability with well-known wallets, and smooth integration procedures.
Customer service: Choose suppliers with attentive customer service departments to quickly resolve any problems and guarantee a seamless payment process for your clients.
Supported Cryptocurrencies: Reach a wider audience by leveraging platforms that support a variety of well-known cryptocurrencies, such as ETH and BTC.
Final Thoughts
Payment gateways and merchant accounts are vital parts of any organisation since they make transactions easier and help them stand out from the competition. They are essential in offering effective cryptocurrency payment options.
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, August 28, by N1.58 or 0.1 per cent to N1,535.61 from the N1,537.19/$1 it was traded a day earlier.
However, the local currency depreciated against the Pound Sterling in the official market during the session by N9.67 to trade at N2,076.42/£1 compared with the preceding day’s N2,066.75/£1 and lost N12.58 against the Euro to close at N1,781.93/€1, in contrast to the previous day’s value of N1,781.93/€1.
In the parallel market, the exchange rate of the Naira and the Dollar remained unchanged yesterday at N1,545/$1.
Fresh injection of FX from investors further helped to ease demand pressure on the local currency as the Central Bank of Nigeria (CBN) conducted another open market operation on Wednesday and offered N300 billion in OMO bills that will mature in 83 days for subscription.
After a successful outing earlier on Tuesday, the CBN floated another single-tenor OMO bill for subscription at the primary market. Foreign portfolio investors and local banks played actively again at the auction, which saw about a threefold subscription against the offer size.
Details from the auction results revealed that aggregate demand was robust, as reflected in a bid-to-offer ratio of over 290 per cent. Investment bankers said aggregate subscriptions reached N860 billion.
As for the cryptocurrency market, it was in red as traders carried out profit taking, turning to gold, which has found a boost over lower interest rates and weaker US Dollar.
Gold had neared its record high of $3,534 hit earlier this month on fears (now allayed) that Swiss gold bars would fall under punitive White House tariffs against Switzerland.
During the trading day, Ripple (XRP) slumped by 3.0 per cent to $2.90, Cardano (ADA) declined by 2.7 per cent to $0.8442, Ethereum (ETH) fell by 1.9 per cent to $4,472.12, Bitcoin (BTC) crumbled by 1.5 per cent to $111,198.46, Dogecoin (DOGE) depreciated by 1.4 per cent to $0.2201, and Litecoin (LTC) dipped by 0.7 per cent to $112.66.
Inversely, Solana (SOL) gained 2.2 per cent to sell at $215.01, and Binance Coin (BNB) expanded by 0.2 per cent to $870.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Dipo Olowookere
The Nigerian bourse further depreciated by 0.49 per cent on Thursday in the absence of a positive market trigger as selling pressure deepened.
Data from the Nigerian Exchange (NGX) Limited showed that apart from the insurance space, which improved by 0.44 per cent and the commodity index, which closed flat, every other sector was in red.
The banking industry was down by 1.41 per cent, the consumer goods sector declined by 0.92 per cent, the industrial goods counter slumped by 0.45 per cent, and the energy counter lost 0.02 per cent.
Consequently, the All-Share Index (ASI) slipped by 691.52 points to 140,557.24 points from 141,248.76 points and the market capitalisation contracted by N438 billion to N88.935 trillion from N89.373 trillion.
International Energy Insurance was the worst-performing stock after it fell by 9.62 per cent to N3.29, Omatek lost 8.97 per cent to trade at N1.32, Ellah Lakes depreciated by 8.49 per cent to N13.68, Royal Exchange moderated by 6.98 per cent to N2.00, and Sunu Assurances crashed by 6.42 per cent to N5.54.
Conversely, SCOA Nigeria appreciated by 10.00 per cent to close at N6.05, RT Briscoe jumped by 9.80 per cent to N3.36, NEM Insurance grew by 7.96 per cent to N31.20, NGX Group expanded by 7.94 per cent to N57.80, and McNichols increased by 7.04 per cent to N3.80.
Business Post reports that there were 19 price gainers and 39 price losers at Customs Street yesterday, indicating a negative market breadth index and weak investor sentiment.
During the session, investors traded 885.0 million shares worth N28.3 billion in 26,163 deals versus the 682.9 million shares valued at N22.2 billion traded in 28,695 deals on Wednesday, representing a shortfall in the number of deals by 8.82 per cent and a leap in the trading volume and value by 29.59 per cent and 27.48 per cent apiece.
The busiest equity for the day was Champion Breweries with 201.1 million units sold for N3.5 billion, Access Holdings exchanged 102.2 million units worth N2.8 billion, GTCO traded 96.5 million units valued at N8.9 billion, Sterling Holdings sold 90.8 million units for N726.6 million, and First Holdco transacted 46.3 million units worth N1.5 billion.
By Adedapo Adesanya
Oil prices settled higher on Thursday as Russia attacked Ukraine with missiles and drones overnight, a development that has angered US President Donald Trump.
The price of Brent crude was up by 57 cents or 0.8 per cent to $68.62 per barrel during the session and the US West Texas Intermediate crude jumped by 45 cents or 0.7 per cent to $64.60 a barrel.
According to Reuters, Russia hit Ukraine with deadly missiles and drone strikes early on Thursday, killing at least 21 people in Kyiv. Meanwhile, the Ukrainian military said it used drones to hit two Russian oil refineries overnight.
There are expectations that President Trump will intensify pressure on both countries to finally reach a deal after he met with both leaders this month to avoid further attacks.
Traders are also watching for India’s response to pressure from the US to stop buying Russian oil, after Mr Trump doubled tariffs on imports from India to as much as 50 per cent on Wednesday.
Regardless, Russian oil exports to India are set to rise in September, defying the pressure from the US.
The biggest Indian state-owned refiners, including IndianOil and BPCL, had recently pulled out of spot purchases of Russian crude for cargoes loading in October, after the US announced an additional 25 per cent tariff on India over its imports of crude from Russia.
The overall 50 per cent tariff on Indian goods took effect on August 27.
Despite the hiked tariff, due to India’s continued purchases of Russian oil, Indian refiners are set to raise their imports by between 150,000 barrels per day and 300,000 barrels per day in September, or up by 10-20 per cent compared to August volumes.
Crude oil supply is also set to rise due to a plan by the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ to raise September output by 547,000 barrels per day.
Further pressuring oil prices, Russian crude supplies to Hungary and Slovakia through the Druzhba pipeline have restarted after an outage caused by a Ukrainian attack in Russia last week.
Market analysts noted that weaker demand and higher supply will cause oil inventories to rise in the coming weeks as traders braced for lower fuel demand after the US Labor Day long weekend.
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