Eternity Law International — News — Future belongs to cryptoprocessing: what it is and how it works

Future belongs to cryptoprocessing: what it is and how it works

Published:
November 24, 2020

Cryptocurrency is replacing payments made in dollars and in other currencies slowly but stable. For this reason, conventional payment services are becoming less popular and are being replaced by crypto-processing.

How does crypto payments work?

In order to make a transaction in cryptocurrency, the sender must:

  • firstly, know the address of the blockchain wallet of the person who will receive the transfer;
  • and, secondly, to drive the address into the required field of your wallet, indicate the amount of funds to be sent and confirm the operation (if you use a QR code, then the procedure takes less time and becomes much easier).

In some cases, you need to pay a commission, the size and availability of which depends on the blockchain itself, and, in addition, on the urgency of the transaction. For example, if you make a transfer in Bitcoin, then if you need a non-urgent transfer and you can wait 1 hour, you will be charged a commission of 13 cents, but if the transfer is urgent, then 25.

Many people point out that cryptopayments are especially attractive because they are irreversible. However, there is one caveat here. The operation will become irreversible only when the required number of miners approve it. Each specific company that works with transactions in cryptocurrencies sets itself how many times the transaction must be confirmed.

What is the role of crypto processing?

Processing is a service used by merchants to receive payments through various channels. Processing is, so to speak, an intermediary, and performs six main functions:

  • registration of the payer’s data;
  • conversion of the amount in accordance with the established exchange rate;
  • verification;
  • receiving money from the buyer;
  • transfer of funds to the seller;
  • provision of confirmation of transaction processing from one and the other party.

Crypto processing has a similar scheme of work, but adds a few more key steps:

  • sending information on the transaction to the blockchain;
  • registration of confirmation nodes;
  • converting coins, if the merchant so desires, into fiat.

Why do not merchants accept payment transactions?

Payment processing always contains a fraction of the risk of data interception by various fraudulent organizations or individuals. Operations with bankcards are especially dangerous, because the buyer must indicate all information from the card, including the CVV code. With the help of processing, an appropriate level of security can be ensured, which allows data transfer under reliable protection. Merchants themselves do not have this opportunity.

Speaking of payments in cryptocurrency, a few following points should be added to the security issue:

  • most merchants do not want to keep cryptocurrency on their balance sheets, as this will create some problems with accounting and tax payments;
  • each specific coin requires an individual infrastructure;
  • for a particular operation, it is necessary to calculate the rate that is current at the time of the transaction;
  • it is rather difficult to determine which client made the payment, and some others.

Engaging crypto processing will help to get off all these difficulties.

Why should you start using cryptocurrency today?

Cryptocurrency is becoming more and more popular and in demand every day. The number of people using crypto around the world is skyrocketing every minute. Over the past 3 years, the number of blockchain wallets has increased from 6 million to 40. Very soon, payment with cryptocurrency will become as common as transferring money through conventional payment services.

Moreover, if it seems to you that making transactions in crypto is too difficult and tricky, we assure you that you are mistaken. The processing integration procedure will take only 2-3 days, while the costs will be minimal. The recipient only needs to decide in what currency he will receive the money.

According to forecasts, in some developed countries, crypto payments will very soon be able to replace fiat completely. That is why those companies that start connecting cryptocurrencies to their activities will become one-step higher than their competitors will. Accordingly, the more you will benefit from the impending crypto-integration of your business, the sooner you start using cryptocurrency payments on your website.

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