Should Business Owners Accept Cryptocurrencies as a Payment Method?

Filed under: Credit Card Processing

Tagged with: · · ·

Cryptocurrencies have been a hot topic in the financial headlines, especially with the recent volatility in the Bitcoin value. Even though many people are investing in cryptocurrency, there are important reasons why business owners should hold off on accepting these forms of payment for products or services.

Some business owners think that they need to “follow the money.” But, you need to be sure that the money you are accepting will hold up in value to protect your business interests.

Cryptocurrency: Unproven Payment Techniques

Cryptocurrencies, such as Bitcoin, are digital forms of payment that can be received and sent on peer-to-peer networks. The problem is that these forms of currency aren’t backed by a solid monetary basis. This digital idea is growing, and some people are loving the gains in their investments. But, unlike the US dollar that is backed by financial institutions, cryptocurrencies aren’t routed through centralized financial systems such as banks, government agencies, or exchanges.

Another risk to cryptocurrency is that the sender and receiver can stay anonymous. It isn’t necessary for the users to provide names, locations, or what was received for the payment. The anonymity naturally increases the risk that cryptocurrencies will be used for illegal transactions.

A Passing Fad or a Real Payment Technique?

This new payment method is young enough that it is hard to say if it will be a passing fad or something that sticks around for a while. But, many people are choosing to wait to use this form of currency because they are hesitant about the drastic changes in the value of the currency. If the investment seems “too good to be true,” then it is probably a warning sign that you are taking a risk by using it.

Instead of risking the stability of your business, it is best to stick with long-standing payment methods that have been used over the years. Cash, credit cards, and debit transactions are based on real currency, and you don’t have to take the risk of the currency suddenly changing in value.

If you have questions about setting up a solid payment system for your business, then Rick Johnson is available to help. He is an expert in the merchant services industry and can assist with setting up your business payment system. Contact Rick at National Merchant Services: 888-891-0811