Was bringt es mir als Händler, wenn ich Bitcoin akzeptiere? Dieser Artikel zeigt die Vorteile von Bitcoin und wie man es in seinem eigenen Online-Shop nutzen kann. Ein Grund für Shopbesitzer, Bitcoin anzubieten, ist das persönliche Engagement für das Thema.Read More
How does accepting Bitcoin benefit me as a merchant? This article shows the benefits of Bitcoin and how you can use it in your own online store. One reason for store owners to offer Bitcoin is to make a personal commitment to it. The best way to get Bitcoin is to offer goods and services in exchange for Bitcoin. As a Bitcoin supporter, you can have Bitcoin integrated into your store out of conviction. However, there are numerous additional reasons why you should accept Bitcoin as a merchant. More and more businesses are accumulating BTC.
Why Bitcoin can be an attractive option for merchants?
Accepting Bitcoin vs using other payment methods. When running an online store, the most common payment methods are PayPal, credit card and online bank transfer. However, there are others that are very common in certain regions and countries or specialized for certain business models. All payment methods, including standard options such as PayPal, credit card and online bank transfers, require online store owners to go through an elaborate process for registration, legitimation and verification of their company and business model. After successful completion, the selected payment method can be technically integrated into the merchant’s own online store.
After successfully making the first payments, an online store merchant may find that the customer has paid, but the money is not immediately available. As a merchant, one is at the mercy of the rules and conditions of credit card acquirers, banks or payment providers such as PayPal and online money transfers, which act as intermediaries and regulate the process. The payment method provider acts as a middleman between the customer and the merchant. The merchant is informed that the payment has been successfully processed, but the final transfer of the amount may take between a week (PayPal) and a month (credit card) due to the rules of the payment service provider.
In addition, the merchant bears the risk of a chargeback by the customer. If the end customer subsequently refuses to pay, the amount will be reversed by the payment method provider and credited to the customer. The merchant can still claim payment, but this involves additional costs and risks. None of the popular payment methods offer a payment guarantee for the merchant. Although there is PayPal buyer protection, there are numerous exceptions, so that one cannot speak of a 100% payment guarantee for the merchant.
Costs related to the execution of payments
Payment method providers charge a fee for processing payments, consisting of a fixed transaction fee and a percentage share (disagio). Merchants who accept PayPal pay 0.35 euros per transaction plus 2.49% of the purchase amount. Credit card payments incur a 2-4% disagio plus a transaction fee of approximately 0.20 euros for the merchant. These amounts depend on sales and business model. An online merchant must expect costs of about 2.5% of sales plus about 0.20 euros per transaction for payment processing. Sales must be pre-financed for up to one month, as credit notes are delayed. In addition, there is no payment guarantee and chargeback risk.
If you accept Bitcoin, you can benefit from the following advantages
- The costs for Bitcoin payment processing are between 0.5% and 1% of the turnover with most providers. With a BTCPay server, there are even no fees.
- Bitcoin turnovers are immediately credited to the wallet and are instantly available.
- With Bitcoin, there are no specifications for permitted business models or locations.
No risk of chargebacks
Merchants who accept Bitcoin have no chargeback risk. The dominant online payment methods are credit cards and PayPal, both of which are “pull transactions.” The merchant initiates the payment with the credit card company or PayPal, which then makes a charge to the customer. This contrasts with “push transactions” initiated by the customer, such as SEPA credit transfers, Giropay, and purchase on account.
With all these payment methods, the customer must provide the merchant with his personal data so that the payment can be made. However, this transfer of data carries a data protection risk, as it can be stolen by hackers, as has often happened in the past. Merchants require extensive data to protect themselves against chargebacks by customers.
Here is an example from the merchant’s point of view
Suppose you run an online store and sell a product to a customer. The customer pays with his credit card and keeps the product. Some time later, the customer files a chargeback, claiming that the product was defective and demanding a refund. The bank reviews the case and decides in favor of the customer, whereupon the purchase price is deducted from your account. In this scenario, the merchant is left with the loss.
He does not receive any money and can try to get the product back. It is important to carefully record and be able to prove that the product was sold to the customer in good condition. This way you can argue against an incorrect chargeback decision if needed. A merchant cannot be sure that a customer who initially appears reputable will not later file a chargeback or pay with stolen credit card information.
There are two main reasons for chargebacks from a merchant’s perspective
- Stolen credit card fraud: These are cases where a criminal uses stolen credit card information to place an order without the actual credit card holder knowing.
- Customer complaints: These are cases where a customer is unhappy with a purchase and requests a chargeback to get a refund.
It is important for merchants to prepare for both types of chargebacks by monitoring and improving their business practices to prevent fraud and providing good customer services to satisfy dissatisfied customers.
During a purchase, the customer and the seller exchange goods for money. In a retail store, the customer pays directly and receives the goods from the seller. In online commerce, however, the buyer and seller are at a distance in terms of space and time. This is where financial institutions, such as banks, credit card companies or PayPal, come into action as intermediaries or brokers. These intermediaries require customer data from the merchant as proof of payment authorization. When a customer objects to a purchase and refuses to pay, they contact the intermediary and request a reversal of the payment. This is called a chargeback. The banks do not check whether the chargeback is justified or whether the customer has returned the goods.
In a “pull transaction,” banks, credit card institutions and PayPal refund the amount to the customer without objection. In return, this amount is reclaimed from the merchant, regardless of whether the service was provided. The merchant must decide whether to accept the loss or take legal action to reclaim the money or goods. In any case, the merchant bears the risk, since the intermediaries always reward the customer with the amount of money and charge it to the merchant.
To protect against chargebacks or fraudulent orders as a merchant, it is necessary to minimize the risks in advance. For this reason, extensive data is collected about the customer, on the basis of which a risk analysis is carried out. This data is not only required for the risk analysis, but also to document and successfully file any claims. In essence, the merchant must protect itself against customers who pursue fraudulent intentions and wish to order from it using illegally obtained data and stolen identities.
When a payment is made by credit card or PayPal, it is a “pull transaction” where a merchant is always exposed to a high risk of chargebacks. To minimize this risk, it is necessary to thoroughly analyze the customer data. This inevitably places the merchant in a data collection role and in turn exposes him to the risk of fraudsters stealing this data to use it to place fraudulent orders elsewhere. This can lead to a downward spiral of data collection and hacker attacks, to the disadvantage of the merchant.
“Push payment” methods, such as bank transfer and Bitcoin, offer the merchant protection from the risks of fraudulent orders. With a Bitcoin payment, the merchant has a 100% payment guarantee, without the risk of an objection from the customer. This means that the merchant does not have to take precautions against possible fraudulent orders.
By accepting Bitcoin as a payment method, merchants have no obligation to collect unnecessary data about their customers or their customers’ orders, except for that which is required exclusively for the order and delivery process.
Anyone can accept payments in Bitcoin
Any merchant, regardless of size or location, has the ability to offer Bitcoin as a payment method without having to rely on approvals or verification.
The processing costs for a payment using Bitcoin depend on the way it is handled. If you handle it yourself, you can do so without any costs. However, if one uses a payment provider, fees of up to 1% of the turnover may be incurred. The end customer is responsible for bearing the cost of sending a payment in the form of a transaction fee, which is calculated according to transmission speed.
With Bitcoin payments, there is no risk of chargeback for the merchant as such payment is final. Bitcoin is a global payment method, which allows the merchant to sell goods and services worldwide. Tracking a payment on the blockchain is easy and fast, with a credit to the merchant’s wallet within an hour. The cost of payment processing can vary depending on the choice of payment provider, but an in-house technical implementation can reduce it to zero. The cost of transmission is paid by the customer in the form of a transaction fee, which is based on speed.
The merchant has the freedom of choice in its product and business model whether to provide the service immediately or wait until the credit of Bitcoin is fully credited to its wallet.
Who is my potential target group if I accept Bitcoin?
Does it make sense to offer Bitcoin as a payment method if the target group has no interest in Bitcoin? Integrating Bitcoin into your own store requires time and resources, so you should make sure that your target group is willing to pay with Bitcoin in the first place before going down this path. This effort can only be justified if the target group of a store overlaps with Bitcoin owners.
According to a survey of over 2000 people conducted by Paysafe in October 2021, the distribution of Bitcoin owners is as follows
According to the survey, the two largest demographic groups are between 25 to 44 years old. The survey was conducted in the US and UK, and women made up 44% of the crypto community at the time.
However, it is known that Bitcoin owners often hesitate to get rid of their Bitcoins. They tend to keep them and say goodbye to their euro and dollar amounts instead.
Using bitcoin in marketing to increase popularity
By offering Bitcoin in the store, you signal technology innovation and a sprit of the time. If the store’s target audience is also interested in Bitcoin, you are sure to get their attention. Merchants who accept Bitcoin should clearly highlight this on their website, be it on the home page or among the accepted payment methods. In addition, one should point out the acceptance of Bitcoin in other marketing efforts (flyers, social media). It is also advisable to register your store in Bitcoin directories.
Benefits for merchants accepting Bitcoin
- Increasing visibility: by offering Bitcoin as a payment method, you can attract the attention of people interested in cryptocurrencies.
- Technology innovation: by offering Bitcoin, you signal that you are technologically up-to-date.
- International payments: Bitcoin allows merchants to accept payments from customers all over the world without having to worry about currency rates and transfer fees.
- Less dependence on banks: Bitcoin allows merchants to be less dependent on banks and traditional financial service providers.
- More secure payments: Bitcoin transactions are secure and transparent due to blockchain technology.
- No chargebacks: Bitcoin payments are final and cannot be reversed, giving merchants more control and security.
Benefits for the customer
- Anonymity: Customers can protect their personal information and finances by using Bitcoin instead of traditional payment methods.
- Faster transfers: Bitcoin transactions are typically processed faster than traditional bank transfers.
- International payments: Customers can use Bitcoin to make international payments without worrying about currency exchange rates and transfer fees.
- No credit card details required: customers do not have to reveal their credit card details to pay with Bitcoin.
- No chargebacks: Bitcoin payments are final and cannot be reversed, giving customers more control and security.
- Lower transfer costs: Compared to traditional money transfers, Bitcoin transfers can be cheaper.
Bitcoin owners prefer this payment option as they find it convenient and secure. The transmission of personal and confidential data when making a purchase by credit card is not felt to be comfortable by many customers. Particularly in online activities such as watching a video, reading an article or paying for a membership, customers are cautious about disclosing their personal address or credit card information. These questions such as “What happens to my data?” or “Is it a subscription trap?” can lead to uncertainty. The tech-savvy target group greatly appreciates the advantages of quick, easy and anonymized payment via Bitcoin. So there are many strong arguments in favor of adopting Bitcoin or at least considering it.Read More