Over the past 20 years, online commerce has been the main way to do business thanks to the availability and expansion of the Internet around the world. However, it is worth noting that the standard business structure controlled by banking institutions has not changed for more than a century.
According to the report of the World Economic Forum, decentralized payment systems based on blockchain technology can change this practice and show the world more reliable and secure Internet transaction formats.
As practice shows, the blockchain is able to get ahead and update these outdated systems and create a more open, fast and low commission flow of global payments.
These factors have led to the development of a new direction in the structure of the company and since 2018, after several years of intensive development, we are happy to provide you with a new service – opening a merchant account for accepting payments in cryptocurrencies. Both customers on the websites of our merchants and partners of the WELLCOINEX company have already managed to evaluate this innovation.
What is a merchant account
A merchant account is a special account that receives money from various payment systems for goods or services sold. Payment systems may include bank cards (Master Card, Visa, American express, etc.), electronic money (Qiwi, Yandex money, Web money, PayPal, etc.).
Now the company WELLCOINEX offers a merchant account for receiving cryptocurrencies.
The process of Internet payment using a merchant account is as follows:
- The buyer clicks on the Buy button (or a similar one in meaning) and gets to a page where he can choose the method of payment most convenient for him and clicks on the corresponding button.
- He gets to the secure payment page, where he enters the necessary details. Depending on the chosen method, they are different, as well as different identification methods – to pay by card you will need to enter a one-time password, which will be sent to SMS. For Yandex money and Qiwi, you will first need to enter a password to access your electronic wallet, and then enter the password from SMS to make a payment.
- If the payment is successfully completed, the buyer sees a notification. In case of refusal, the reason will be indicated.
To work under this scheme, in addition to the buyer and the seller, an acquirer bank is included in it, which provides the seller with a merchant account and a processing center that provides secure communication between the seller, the buyer, the acquirer bank and the issuing bank or electronic payment system.
Having a merchant account greatly simplifies online trading, thanks to the following advantages:
- Versatility – the buyer can pay for the product / service in a convenient way for him – from a bank card, from his electronic wallet, cryptocurrency.
- Reliability – all operations are reliably protected by special software.
- Convenience for seller and buyer.
Together, these qualities of a merchant account allows you to increase trading volume and get more profit.
What problems can I forget about using a cryptocurrency merchant account?
- Complex and lengthy integration;
- Rolling reserve from 10% for 180-360 days;
- Difficult withdrawal of funds from a merchant account;
- Frequent failures in accepting payments and, as a result, loss of a client;
- Dependence on conditions and commissions of issuing banks and acquiring banks;
- Blocking the account by the acquirer for an arbitrary period without the ability to affect the outcome;
- High risk of return and chargebacks;
- A lot of intermediaries and long feedback.
Earlier, to connect merchant accounts, one had to overcome a number of bureaucratic obstacles, waiting for the favor of banks and receiving disappointment instead of the promised solution, but fortunately – this is history.
Progress does not stand still and cryptocurrency has come as a substitute for fiat currency – a digital currency based on blockchain technology.
Thanks to an improved payment system, it is possible to make online payments without leakage of information without third-party payment partners.
In the WELLCOINEX merchant system, only proven, promising cryptocurrencies are available, such as BITCOIN, ETHEREUM, IOTA, DASH, BITCOIN CASH, LITECOIN, RIPPLE, EOC, WAVES, ZCASH, NEO.
The main reason for opening a merchant account in cryptocurrency is the desire to reduce costs, as a result, arrange customer loyalty due to low fees when paying for your goods or services.
Also, do not miss the main advantage of connecting such an account by simply installing a payment button on your website, thanks to which, already 24 hours after the appeal, your website is ready to receive funds from your customers using electronic cards.
Regardless of the factor that will affect the decision-making, in the person of our partner you will receive a number of undeniable advantages.
The main benefits of a cryptocurrency merchant account:
- No longer need lengthy negotiations between your company and the acquaire bank, which can slow down or dispute the payments of your customers.
- 24 hours a day and 7 days a week, you enjoy an uninterrupted system that includes, merchant account, exchange of cryptocurrency and transfer of funds to your merchant account.
- Compared with the bank commissions we are used to, you can significantly save on all transactions. Use the usual credit and debit card service that has a shell of Blockchain technology.
- The new geography of your business. Now your customers will be able to pay for goods or services with a wider geography, which was closed to you by the client’s IP or BIN card.
- There is no oversupply of operations, as the necessary data is in the public domain and thereby eradicate the likelihood of fraud. All changes to client data are instantly distributed among blockchain members.
- Transactions carried out with the help of cryptocurrency merchant accounts do not provide for the probability of a payment being returned, in comparison with transactions made with a credit card. Now the chargeback procedure for your dishonest client will be difficult to implement.
Of course, such a decentralized system implies that any entrepreneur on the Internet will be able to accept payments using this innovation of the currency system and the necessary minimum for this is the website of your company.
However, our team carefully selects merchants and activates accounts. We do not cooperate with companies that violate the law. Due to the simple system of approval of merchant accounts, we will be forced to constantly monitor changes in the privacy policy and the website.
Our KYC / AML processes are reduced to a simple automated verification and we possess the necessary knowledge base in the field of security to prevent the execution of transactions or the attempt to purchase / exchange cryptocurrencies of persons who are blacklisted.
Merchant account for an online store – what are the benefits
The presence of a merchant account and a cryptocurrency merchant account expands the possible payment methods for the buyer. This covers a wider audience of potential buyers.
For online stores associated with high-risk business (medicines, precious metals, narcotic drugs, industry 18+, etc.), the presence of a cryptocurrency merchant account can significantly expand the audience of customers (it is known that in such a business, cryptocurrency for its anonymity is especially in demand).
Plus, the lack of chargeback, which, again, is very important for such a business.
To these benefits are added already mentioned earlier:
- minimum commission;
- the absence in the scheme of the acquirer bank, whose actions may interfere with the activities of the online store;
- a significant reduction in the likelihood of fraud.
We emphasize again. You can open a merchant account and a cryptocurrency merchant account at WELLCOINEX.
How does the cryptocurrency payment technology work on the site?
It’s time to study the words that are still difficult to understand: blockchain, decentralization, cryptocurrencies, merchant account, transactions, emission bank, acquiring.
Because making a decision today and using such an innovative payment method will significantly save your time and money – the main resources your business needs.
Blockchain – a continuous chain of blocks, built according to certain rules with selected keys, each of which encrypts the key from the previous block and connects everything into one network. The main advantage is that it is impossible to replace the data of the past.
Decentralization – the lack of a single server for storing data. The database is stored on all PCs that are part of the blockchain structure.
Cryptocurrencies – digital currency creation and control of which are based on cryptographic methods.
Merchant account – a technological solution that allows you to accept bank cards for payment of goods or services. Such a trading account is designed for many transactions per minute.
Transactions are a meaningful and fully completed operation, usually this term is used in the world of payments and or on a financial exchange.
Issuing bank (or issuing bank) – a bank that issues banknotes or bank cards and checks.
Cryptocurrency acquiring how does it work?
Thanks to our group of companies, Merchant can fully close its needs for receiving payments, regardless of whether it is a resident of the Offshore jurisdiction.
Does he have a license (for cryptocurrency activities, gambling, betting, forex) or not. The merchant enters into a SaaS contract for the rental of our software solution and installs a payment button on his resource.
After that, the Merchant can accept payment with cryptocurrency under our license.
WELLCOINEX service acts as a kind of coinbase analogue – a secure infrastructure that stores cryptocurrency, all analytics and the history of operations. From there, the Merchant has the ability to transfer cryptocurrency to other users or receive money in the cryptocurrency Merchant to his wallet or to his “account”.
If the Merchant accepts payments in cryptocurrencies other than what the User has, then the user is immediately offered the opportunity to make an exchange through our crypto-exchange service when paying through the widget. These options will be mutually integrated and automated.
This functionality is accompanied by a fiat part, which allows a user who does not have a cryptocurrency or who wants to pay a service with a card to automatically purchase the necessary cryptocurrency directly in the widget through our crypto-exchanger.
The user is shown the cryptocurrency purchase rate online. The merchant can receive funds from the User either in cryptocurrency or in fiat currency. In this case, we perform the reverse conversion from digital currency to fiat and pay the Merchant to his current account.
For the user, this card payment transaction will go through MCC 6051 instead of 6211/7995, etc., and will pass unhindered and legal both at the issuing bank and at the acquiring bank.
As an additional option, the User and the Merchant will be offered to use our crypto-exchanger .. This will allow both the Merchant and the User to more quickly dispose, exchange, send, receive fiat and crypto, as this wallet will soon be integrated into all services and companies described above.
In addition, this is an additional guarantee of security for all participants in the transaction and an accelerated method of connection and, as a result, simplified access to funds.
The WELLCOINEX team believes that every client of the company will be able to evaluate all the benefits of payment on their website in cryptocurrency.
Our goal is to be a long-term partner and a leading provider of payment services for various organizations, providing all participants with the opportunity to compete and progress successfully in today’s market.
Ways to connect a merchant account
A merchant account can only be opened on a legal entity. If you want to have a merchant account in the bank, you must meet certain, fairly stringent criteria and pass a complex and lengthy test.
Standard requirements include:
- Provide the necessary documents – a list of the types of entrepreneurial activities, information about the beneficiaries of the company, including tax returns, contracts with contractors, suppliers and show which model is used for the KYC and AML procedures for the entrepreneur.
- Post on the website information about the company’s policy on working with clients, about the privacy policy, how the company fights the financing of terrorism and money laundering.
According to the experience of our company, we can say that when a seller company contactes a bank about opening a merchant account, the latter begins a long KYB check.
To expedite the process, we recommend contacting our company WELLCOINEX, which deals with this issue every day. You can submit an application through our representatives on the site.
Our specialists will help reduce and simplify the process of obtaining a merchant account for your company. This is especially true for legal entities wishing to work in foreign markets. In this case, they need to:
- Bank account in a foreign bank. And for this you need to find a bank that wants to work with you. This can be a long process, especially if your business is at high risk.
- Connect your site to international payment systems.
With the help of WELLCOINEX, all these problems will be solved much easier.