What Bitcoin Payment Checkout Should You Use?

With more and more companies like Tesla, Microsoft, Whole Foods and Starbucks announcing they will begin to accept Bitcoin, others are wanting to join in before it is too late. But new companies entering the space can be confused about what type of Bitcoin Payment Checkouts to use.

This article will seek to break down Bitcoin Payment Checkouts into 3 types:

• Take your money and hold it. Fees on withdrawing. KYC required.
• You keep your money. Fees on transactions. No KYC required.
• You keep your money. Set it all up yourself.

All Bitcoin Payment Infrastructures can fall into one of those three categories. This article will break them down, and examine what exactly each one means, so that you can make the right choice for your ecommerce store.

1.Traditional Payment Checkouts — They take your money and hold it. Fees on withdrawing. KYC required.

This is the first type of processor. It is one of the most common, and is built much in the same way fiat processors are built, like PayPal. Any transactions performed on your store will be sent to their accounts. They will hold onto the Bitcoin for you. This can be really useful because it decreases complications. You can do minor things with that Bitcoin, however you do not control it yet, because you do not own the keys. These services charge you a fee when you withdraw the Bitcoin into your own wallet. Sometimes this is on top of a transaction fee as well.

This is useful for those used to companies like PayPal, and if you like that system. It is similar to your fiat payment checkouts, so you don’t have to worry about changing your routine. They also require KYC, or the requirement to provide personal information, before they will allow you to use the service. If you’re big on privacy, that’s a huge problem. However, you do get the added peace of mind of security and stability over on the long term. Plus these act more like a “traditional” company, so more standard business contracts are more possible.

Companies with this model: BitPay, PayPal, CoinBase Commerce, Coingape, Coin Payments

2.Direct Payment Checkouts — You keep your money. Fees on transactions. No KYC required.

This is the second type of payment infrastructure. These payment infrastructures never touch your Bitcoin. It goes Direct to Wallet, you control your Bitcoin at all times. Transactions are the only fees required, because the company can’t control when and how you use your Bitcoin.

These types of payment checkouts give more power to the merchant. You control the sales, the transfer of Bitcoin, etc. the payment checkout just facilitates the transaction. That means the company can’t close your account and keep your money, like PayPal has been known to do. Additionally there is no KYC required, giving you more privacy.

Companies with the model: Blockonomics, Bittery.io, PayScript

3.Self-Hosted Payment Checkouts — You keep your money. Set it all up yourself.

This is the third and final type. These payment infrastructures can be very powerful, and provide a lot of flexibility to the merchant. The merchant controls how it is set up, what it looks like, the transactions, etc. If you have the coding capability, this is the gateway for you. Because of the increased work that has to be done, it isn’t for everyone. However, if you do have the time and tools, it can do a number of things the first two can’t.

Companies with the model: BTCPay Server, Electrum Merchants, BTCPayment, BitcartCC

In conclusion, if you’re looking for a Bitcoin payment checkout, there are a lot of options. However, most fall into these three categories. Finding the right type of company for your store is important. If you’re happy with less control of your Bitcoin, in exchange for ease, the first type might be best. If you want a powerful solution and have the time, energy, and knowledge to set it up, payment checkouts that fall under the third type are for you. If you want a bit of a mix of the best of both, the second type of company, like Blockonomics, might be best. It let’s you retain your funds with the least amount of setup.

Good luck choosing your type, and have fun getting paid in Bitcoin!