Bitcoin Merchant Account for Crypto Exchanges.
The demand for purchasing cryptocurrency by using a credit card is growing fast. If you run a cryptocurrency exchange and don’t allow your customers to make payments by credit or debit cards, then you will lose your competitive advantage. QuadraPay offers Bitcoin merchant accounts that allow cryptocurrency exchanges to accept credit card payments. With a bitcoin merchant account, your customers can easily buy crypto currencies with credit cards.
What is a Bitcoin Merchant Account?
A Bitcoin merchant account is a cryptocurrency payment gateway that allows cryptocurrency exchanges to collect credit card payments for the sale of crypto coins and NFTs.
Benefits of Bitcoin Merchant Accounts
With a Bitcoin merchant account, exchanges can tap customers from multiple nations. It offers a convenient way for its users to purchase crypto currencies. The instantaneous transaction reduces the risk of volatility and financial loss for customers and the exchange. Crypto exchanges that accept credit cards can do a lot better than those that are still using traditional methods of payment acceptance.
Document Requirements for a Cryptocurrency Exchange Merchant Account
Providing accurate personal and business information is essential for identity verification and legal compliance. You will have to share valid IDs for all company directors and owners, a certificate of incorporation, and a cryptocurrency exchange licence. Verifying business documents ensures legal compliance and authenticity, contributing to the underwriting decision.
FAQ: Bitcoin Merchant Account
Why are Bitcoin merchant services high-risk for banks?
It is a well-known fact that most acquiring banks consider cryptocurrency exchanges to be of a high-risk nature. There are multiple reasons why an acquiring bank would consider such a large industry as potentially risk-oriented.
The main reason why an acquiring bank would like to stay away from exchanges is the product itself. Cryptocurrencies are volatile, and this can be a credit risk for the merchant, the acquiring bank, and also the user. The price of cryptocurrency goes up and down, and this can create a sense of distrust in the mind of the user, which can result in chargebacks.
Another reason is the risk of illegal activities. As we all know, cryptocurrency offers a degree of anonymity; unfortunately, this is of massive benefit to criminals, and that is why cryptocurrency exchanges are always at high risk. To prevent misuse by criminals and fraudsters, cryptocurrency exchanges must adhere to strict KYC and AML compliance.
With quadrapay, you do not have to worry about these challenges. We work with experienced payment service providers that have been assisting crypto exchanges in multiple nations. The knowledge they have gathered by supporting multiple crypto exchanges will become the foundation for stable credit card processing on your exchange.
Why do banks ask for processing history?
Acquiring banks review the processing history to check the merchant’s transaction volumes, chargeback ratios, and overall financial performance. You are expected to share six months of payment processing statements. If your company is a startup, then you can skip this.
Keep in mind that, for merchants, not sharing their previous processing statements and falsely claiming that they are new and have never accepted credit card transactions is a very bad idea. Payment processors can easily identify if the company or its sister corporations have ever processed. We suggest you be 100% transparent and not hide previous details. Even if your previous merchant accounts have been terminated, don’t hide those details. You never know that the new processors may appreciate your honest approach. But if you hide it and they find out, then, as per our experience, we can confirm it will be 100% declined.
Why are there very few banks supporting crypto exchanges?
The industry, potential for high chargebacks, and fraud all contribute to many banks standpoints on this industry.Another factor is that a lot of banks are still learning about how to support crypto exchanges. It is new territory for them. Because of the complexity involved in onboarding crypto exchanges, many banks simply say no.
Why must cryptocurrency exchanges have a clear refund policy?
To be successful in getting approved for a bitcoin merchant account, your exchange must have a clear refund policy. It must be written in simple language so that your customers can easily understand it. Remember, a transparent refund policy will help build trust between you and the customer.
You may be surprised to know that acquiring banks checks how you handle customer service. It is important for you to develop a clear channel of communication with your customer that is easy to access.
Why do credit card processors ask for a demo login to the exchange?
The demo login helps the underwriters understand how transaction flow works on the crypto exchange. It also gives them an experience, like a user. After experiencing the demo, unwriters feel more confident about the security infrastructure of the crypto exchange.
