Bitcoin Mining Merchant Accounts: Must-Know Facts and Benefits

Oct 11, 2018
Bitcoin is perhaps one of the most widely discussed financial news in the last decade. It is a digital, P2P currency that was founded by Satoshi Nakamoto. Unlike our tangible assets, this digital currency is mined by solving an abstract, mathematical algorithm. If you own a bitcoin, you can easily store and send it using e-wallets. Since bitcoins are incredibly popular and extremely hyped about, several bitcoin mining merchant account providers have come on stage.

But what exactly do these providers offer and how do they work? Well, the idea behind a merchant account provider is quite simple. All he does is help every merchant get a merchant account that allows using Bitcoin as just another currency. Merchant account providers aim for simplicity in the customer journey. That is why all you need to do to get started with bitcoin payment processing is drop a line that you need their assistance and undergo a simple onboarding process.

Merchant account providers not only offer you their help with processing bitcoin as well as other credit card payments but also organize transaction information in a simple, traceable way. The latter allows you to prevent fraud and chargebacks.

At this point, you probably need more information on how bitcoin merchant platforms work, read through the next couple of sections for a better understanding.

How To Access Bitcoin Merchant Accounts?
In order to access bitcoin merchant accounts, you first need to browse through the different merchant account providers and find the one that best meets your needs. Once you find it, visit their official website and fill out an application form to get started.

If you own a company and are willing to be a bitcoin merchant, you will need at least six months of your payments processing history. The thing is that most merchant account providers require your payment history along with the chargeback rates, an average sales amount, returns and refunds. You must also show the banking statements of your business for the last six months. Once you have this ready, send it in details to the payment service provider of your choice, and it is likely to be approved within ten to fourteen days.

How Long Does It Take To Approve Bitcoin Merchant Accounts?
Though many of us assume bitcoin merchant accounts are approved within an instant, this might not be the case for all accounts. This is even more relevant for the offshore accounts. Almost every PSP takes five to fourteen days to analyze and approve these accounts. In some cases, even quicker. However, that is entirely dependent on certain factors like the type of industry you’re in and your current payment processing history.

And don’t forget about the approval from a bank that might take from 24 hours till several days or even weeks.

However, that quick merchant account approval is not only in your best interest but also in that of your chosen PSP. That is why be sure they’ll do their best to set up an account for your business as soon as possible.

Moreover, they will guide you at every step during the onboarding process. They will also continue to provide you with quality legal consulting for as long as you plan to avail their services. You can feel free to contact them whenever you have a transaction-related issue.

Will the Bitcoin Merchant Account Come With A payment gateway?
Almost every leading platform that offers a merchant account feature, offers you a payment gateway. This bitcoin payment gateway is “software that enables the transfer of transaction data from the merchant to the acquiring bank. This software serves as an interface between the payment form on the merchant’s website and an acquiring bank.”

The platforms that help you work with these accounts, will directly connect the partner bank’s API to your company’s website, right after your request is approved. Make sure to opt for a merchant account provider with the highest security level. Fraud is not your friend so do everything you can to protect your company from fraudulent activity and chargebacks.

What Companies Accept Bitcoin?
There are several companies that accept bitcoin and due to the overwhelming hype around it, the numbers seem to be increasing every week. This very fact also proves that this virtual currency is here not only to stay but also to rule. As of now, both big and small businesses across the globe start accepting bitcoin., a Utah-based organization was the pioneer in this.

Soon after it, a couple of other companies followed its lead. Some of them are big names like Tiger Direct, Dish Network, Sacramento Kings and CVS. Others are Amazon, OkCupid, Paypal, Dish Network, K-Mart, Chicago Sun Rimes, and others.

What Fees Are Charged for a Bitcoin Merchant Account?
The fees you are charged for the bitcoin merchant account form depending on several factors:

  • your type of business;
  • processing history of a merchant;
  • current average sales volume.
Since every account is different, the fees might vary.

Bitcoin Mining Hardware Accounts
With all the hype around the topic, no wonder that there are still bitcoin and cryptocurrency enthusiasts striving to mine them. The mining is carried out with specific software that is designed to solve abstract mathematical problems. They say that there are only 21 million bitcoins available. And since only about a half of that amount has been mined and is circulating at the moment, people strive to get a few of them for themselves with cutting-edge bitcoin mining software. And if you’re a merchant aiming to accept bitcoins, you definitely need to use the assistance of a bitcoin merchant account provider.