Established back in 2009, Bitcoin needs very little introduction now. However, one thing a lot of business owners are wondering is whether or not they should accept Bitcoin as a payment form. There are, of course, pros and cons associated with both options. Below, we take a look at these in further detail to help you make up your mind.
It’s straightforward – Bitcoin makes international transactions a lot easier. No complicated reporting requests or currency conversions are needed. This is because there is only one rate of exchange, no matter how many different countries and organisations you do business with.
Trade it – You can use platforms like CMC Markets to trade your Bitcoin and make a greater profit from it.
Customer satisfaction – This one is quite simple: if you provide another payment option, you are going to make more people happy, right? Just think of the delight people experienced when they got to the checkout and PayPal was available. It is the same sort of thing.
It’s cheaper – There are a number of reasons why Bitcoin is cheaper. Firstly, because there is no application procedure, there are no application fees. Moreover, you don’t pay unless you want faster processing. This means Bitcoin will automatically be changed into your currency of choice. However, this is not expensive, costing less than one per cent for every transaction. This makes it cheaper than credit cards and PayPal. Do note, though, there is a transaction-processing fee, which is paid monthly.
Free marketing – You also get a bit of free advertising thrown in because your business will be listed Bitcoin sites and, of course, the exchange.
Chargeback control – For credit card sales, disputes can cause payments to be held up for months. This is not the case for Bitcoin. You are in control regarding whether or not the consumer deserves a refund.
More responsibility – You are going to be responsible for customer service and tax reporting, which is one of the drawbacks of accepting this payment method. This means you need to fix any errors regarding transaction amounts and such like. You do not have intermediaries like banks to fall back on, and this can also make taxes more challenging too.
Volatile value – Bitcoin is subject to wild fluctuations. Calculating the market value is not easy because it changes so regularly. An independent agency does not regulate Bitcoin. You need to make an effort to ensure you are charging the right amount of Bitcoin in regards to your typical currency.
No certainty – Finally, theft and hacking have caused big losses in Bitcoin. Plus, there is always the risk that it could just disappear one day!
As you can see, there are pros and cons associated with accepting Bitcoin. Hopefully, this overview can help you decide what is right for your business.