Proven effective payment processing accounts for crypto merchants including cryptocurrency exchanges, blockchain technologies, and initial coin offerings.
Accept credit / cards for US and international buyers. Easily accept bank payments from US buyers accounts with same day ACH debits. Issue fast payouts to US customers with same day ACH credits.
Robust reporting to track all transactions in real time. Get instant confirmation of payments with API-enabled notifications.
Great for one-time and recurring payments. Compliant, secure processing protects against fraud and reduces financial risks.
Card Processing for Crypto Merchants
Debt and credit card merchant accounts let you quickly and easily accept payments from buyers located in the US and world-wide. Card payments are especially popular for American consumers. And there is an increasing use of card payments internationally. Therefore, accepting card payments is important for cryptocurrency merchants.
Debit Cards are Harder to Chargeback than Credit Cards
Although both debit and credit cards can be charged back, it is more difficult to chargeback a debit card transaction than a credit card payment.
Charging back a credit card transaction simply takes a call to the card issuing bank. Banks often side with their customers over merchants so you may not win a dispute. And a credit card transaction can be charged back for up to 180 days from the time the payment was processed.
Debit cards can still be charged back. But it is a lot harder to get the dispute settled in favor of the consumer.
Funds from a debit card are withdrawn immediately from the consumer’s bank account when a purchase is made. Whereas money from credit card transactions are taken from the line of credit the cardholder has with the issuing bank.
As a result, banks have less incentive to settle a chargeback in favor of the debit card holder since the bank has no money at risk. The money was already paid out the merchant from the consumer’s bank account.
Since buyers have already had the money taken out of their accounts, there is more motivation for a debit card holder to contact a merchant directly to resolve the dispute. Resulting in fewer actual chargebacks. Saving you money on chargeback fees. And protecting your card processing merchant account.
Debit cards also have shorter contingent liability periods. Card holders are liable for $50 if a charge is disputed as unauthorized within 2 days. After that, the liability increases to $500. And after 60 days, cardholders must pay the full amount, even if they claim a transaction was not correctly authorized.
Additionally, interchange rates for debit cards are lower than those for credit cards. As a result, accepting debit cards rather than credit cards saves you money on processing fees.
Money Saving Same Day ACH Processing
ACH is great for crypto merchants with US customers since the ACH network is connected to nearly all American banks. ACH is used both for debits and credits transactions. And is used by crypto merchants for both payins and payouts.
ACH debits electronically deduct the payment from the consumer’s bank account and settles the funds to the crypto merchant’s bank account. ACH credits electronically deposits payments from the crypto merchant into the customer’s bank account.
ACH is a low-cost method of payment. There is no interchange involved with the ACH network. Therefore, ACH payments save crypto merchants 50-80% in processing fees compared with card processing.
ACH transactions are also extremely difficult to chargeback compared to card payments. Consumers are required to visit their bank, sign an affidavit that a transaction was not authorized, and submit supporting documents to prove their case. Far fewer buyers will exert the time and effort required to dispute a transaction. And even if they do, the bank may still decline to issue the buyer a refund on the transaction.
The ACH network has also gotten faster. Same day ACH debits and credits are now part of the network. While the payments are still not “real time”, they are significantly faster than in the past.
Same day ACH credits can be deposited the same day since credits are taken from cleared funds in held in reserve for the crypto merchants for payouts.
Same day ACH debits are applied to the buyer’s bank the same day the transaction is made, depending on the time the file is submitted for processing. Crypto merchants can see when the debits are drawn through the back office reporting dashboard. Still, settlements of funds from ACH debits take a few days since the network is not yet real time.
For more information on cryptocurrency merchant accounts, contact info@paynetsecure.net. Or call 888-5-PAYNET.