The notion of cryptocurrency has been around since 2009, but it wasn’t until 2017 that it took off, with bitcoin jumping from $921 to over $13,062 in just a year. However, interest was not as broad as 2020 when they incorporated the currencies into practically every industry.
High-risk payment sectors gained the most from crypto payments out of all the industries that benefited. The guns industry, healthcare, entertainment enterprises, CBD merchants, gaming and gambling, and others dealing with sensitive data and equipment have benefited from high-risk crypto merchant accounts. But do bitcoin products need a Canada high-risk merchant account? Let’s look into it.
Embracing Crypto Payments in High-Risk Industries
Large merchant account providers and payment processors frequently refuse or charge surcharges to high-risk merchants when it refers to debit and credit card transactions. It restricts their options and makes scaling incredibly difficult.
High-risk markets in the United States alone account for nearly $500 billion in annual transactions. Payment processors get more influence and can ‘dictate’ terms as the number of them diminishes. The inherent security of cryptocurrency helps to restore the status quo by providing high-risk businesses with the financial freedom they require to scale their operations.
High-risk sectors swiftly adopted crypto payments and facilitated their payments due to the security and variety offered by crypto merchants to these businesses.
Cryptocurrency’s Advantages for High-Risk Merchants
1. Fraud Risk is Reduced
Cryptocurrency has several advantages for high-risk merchants, one of the most essential and well-known being blockchain-backed transactional security. The infrastructure gives you more financial control and protects you and your consumers.
Chargebacks, fraudulent holds, excessive transaction fees, and placement on the feared Terminated Merchant File (TMF) lists are all threats to high-risk businesses. By minimizing the number of parties related to a single transaction (it’s just you and the other party connected! ), cryptocurrency minimizes all of these risks.
2. Payment Options Are Flexible
Companies can use crypto payment merchant accounts to reach a younger, more tech-savvy audience, but that doesn’t mean they have to ignore their present customers or spend extra to stay relevant.
When you employ high-risk merchant accounts, you can handle crypto payments through the same gateway as you would cards and bank accounts. Although every cryptocurrency payment merchant account can accept credit and debit cards, no card issuer can accept crypto payments through the same gateway.
3. Transactions that are quick and easy
Several high-risk businesses have already adopted crypto payments to eliminate liquidity concerns and fund limits to gain competitive benefits over their competitors. Companies are leveraging blockchain technology’s seamless, borderless, and low-fee transaction capabilities to scale their enterprises, in addition to the greater security it provides.
High-risk companies are always at risk of disrupting their payment processes, whether by the bank, the government, or the customers themselves. The more involved parties, the more complicated a transaction, lowering individual purchasing power.
Different banks may need to be engaged when high-risk industries use fiat for their transactions, especially overseas banks. That raises transaction costs and causes delays in high-risk merchant processing. Governments may also become involved, potentially causing payment acceptance delays.
This means that businesses may be obliged to conduct transactions with cash, which is inconvenient and perhaps risky.
Other advantages
Crypto payments also provide many other advantages to high-risk merchants, including:
- Compared to credit and debit cards, crypto transactions are far more transparent. The transaction cost is fixed because no intermediaries are involved, so your merchants will understand how much they will be charged – down to the last cent!
- Safe communication. Blockchain technology also allows you and your customers to connect on a single block without anyone listening in or reading what you’re saying. That allows for bargaining and other private topics that your clients may wish to discuss with you without running the danger of being defrauded.
- Customer IDs are better integrated.
- There are no geolocation limits for any transaction using decentralized currency, allowing you to reach a far larger audience.
- High-risk enterprises are already charging more for “premium” services. Using specific payment processing services entails decreased profit margins for such enterprises.
- When reviewing bank accounts at the end of the month, the payments are simple to follow. Blockchain can provide “computational trust.”
- Because more people are adopting bitcoin, you may protect yourself from the potential threats that the future may contain due to the economy’s status by setting up crypto payment accounts. The same gateway can handle various payment forms, including cards and cryptocurrency transactions. The more payment options you provide, the more sales you will generate.
Why is a High-Risk Merchant Account Important for Cryptocurrency?
Cryptocurrencies have grown in popularity, with many people interested in the enormous financial benefits that come with them. Because of its excellent reputation, most people are familiar with the cryptocurrency Bitcoin. Given that nearly 2,000 distinct cryptocurrencies are available today, it’s easy to see why merchants would want to accept this payment method.
On the other hand, many firms have difficulty obtaining a merchant account that accepts crypto or virtual payments.
When it comes to bitcoin, debit cards are available for online purchases and ATM withdrawals. Payment processing in this manner is referred to as virtual or crypto payment processing. Digital currencies are growing in popularity around the world. Therefore as a business owner, it’s critical not to miss out on the additional revenue this industry may provide. If a consumer uses cryptocurrencies, it’s a waste not to set up a cryptocurrency merchant account, which will allow you to process the customer’s payment efficiently. For several reasons, most merchant accounts refuse to handle these currencies. That’s why you’ll need a cryptocurrency merchant account provider that can handle high-risk transactions.
Bottom Line
Customers and organizations in the high-risk merchant processing industry can benefit from blockchain technology for safe transactions and communications. Given how many individuals prefer crypto transactions, the potential for crypto merchant accounts is essentially endless.
By providing your business with space and the opportunity to connect with this rapidly expanding market now, you will obtain early access to many clients and avoid any potential economic crises in the near or far future!
