Cryptocurrency Acquiring: What It Is, How It Works, Fees

Cryptocurrency Acquiring: What It Is, How It Works, Fees

A cryptocurrency payment gateway is a digital currency processor, akin to how traditional payment processors and acquiring banks handle credit card transactions. These gateways facilitate accepting digital currencies, instantly converting them into fiat money for the recipient.

As cryptocurrency gains traction in mainstream commerce, more merchants are accepting it as payment. Payment gateways play a pivotal role in this expansion by addressing merchants' concerns and reservations about cryptocurrencies. They simplify the process, offering a seamless payment experience with diverse options.

It's essential to recognize that using a digital currency payment gateway isn't mandatory. Merchants can opt to use their personal wallets to accept cryptocurrency payments. However, gateways streamline the process by handling the complexities of cryptocurrency exchange and wallet management, making it a hassle-free experience for merchants.

Key Points:

Cryptocurrency is increasingly being accepted by numerous merchants, though some are still apprehensive about its security and stability.

Cryptocurrency payment gateways serve as intermediaries in transactions, facilitating the payment process between merchants and customers.

For those less familiar or comfortable with cryptocurrency, payment gateways provide a straightforward solution to accept these digital payments while receiving traditional fiat currency in return.

This integration of digital and traditional payment systems reflects the evolving landscape of commerce, where flexibility and security in payment methods are becoming crucial for businesses to thrive.

What is Cryptocurrency Acquiring?

Cryptocurrency acquiring involves merchants accepting digital currencies like Bitcoin, Ethereum, and others for goods or services. This process requires integrating specific infrastructure, such as payment gateways or processors, ensuring secure and efficient cryptocurrency transactions.

Traditionally, businesses have facilitated payments through credit cards or fiat currencies. However, the increasing popularity and adoption of cryptocurrencies are prompting businesses to evolve their payment systems to accommodate digital currencies.

Unlike traditional fiat banking, cryptocurrency acquiring offers businesses the opportunity to tap into a burgeoning global market of cryptocurrency users. This approach provides several advantages, such as reduced transaction fees, quicker settlement times, enhanced security, and the appeal to a demographic of tech-savvy and cryptocurrency-focused customers.

By adopting cryptocurrency acquisition, businesses not only widen their customer base but also keep pace with emerging payment trends, positioning themselves at the vanguard of the digital economy. This shift is indicative of a broader trend towards digitalization in commerce, reflecting changing consumer preferences and the growing importance of offering diverse and secure payment options in a global marketplace.

How Does a Cryptocurrency Payment Gateway Work?

Payment gateways act as intermediaries in cryptocurrency transactions, assuming the associated risks by using their wallets to facilitate exchanges between merchants and customers.

Payment Procedure:

The transaction process typically unfolds as follows:

  • The customer selects cryptocurrency as their payment method during checkout, whether in-store, online, or via an app.
  • They transfer an amount equivalent to the current market value of the cryptocurrency at the time of the transaction.
  • The payment service instantly converts this cryptocurrency payment into your preferred fiat currency.
  • The funds are credited to your account with the provider and then periodically deposited into your designated bank account as per your service agreement.
  • This process is streamlined for merchants, as they don't need to manage or understand cryptocurrencies directly. The payment service provider handles the conversion and ensures the correct funds are deposited.

However, it's vital to be aware of your country's regulations regarding cryptocurrency before engaging with a payment gateway, as laws are rapidly evolving in this area. Payment gateways, operating globally, need to comply with diverse legal frameworks.

Cost Implications:

The gateway uses a cryptocurrency wallet to facilitate these transfers. Depending on the cryptocurrency's design and payment infrastructure, the service provider might incur fees charged by the network's transaction validators.

These validators are responsible for verifying blocks and transactions on the blockchain. They receive compensation for their energy consumption and computational efforts in the form of small increments of the cryptocurrency they validate.

Service providers typically pass these network fees onto merchants, along with their own service charges. This allows them to sustain their operations and continue providing payment processing services. It's essential for merchants to consider these fees when choosing a payment gateway to ensure cost-effectiveness and alignment with their business model.

How to Pick a Reliable Crypto Acquiring Service

In selecting a cryptocurrency payment processor for your business, it's vital to consider various aspects to ensure a partnership with a competent and trustworthy provider. Key considerations include:

  • Security and Compliance: Given the high value of digital assets involved in cryptocurrency transactions, prioritizing security and compliance is essential. Look for a processor with robust security protocols like encryption, multi-factor authentication, and secure fund storage. Ensure they comply with relevant regulatory standards to safeguard your business and customers.

  • Cryptocurrency Range: Different processors support various cryptocurrencies. Identify which digital currencies are favored by your target market and opt for a provider that supports these specific currencies.

  • Integration and User Experience: The processor should easily integrate with your existing systems. Look for providers offering comprehensive integration tools like APIs, plugins, and SDKs. The user interface should be straightforward and friendly for both your team and your customers.

  • Fee Structure and Settlement Time: Evaluate the fees charged by various processors, balancing cost with service quality and features. Additionally, consider the settlement period - how quickly the processed funds become available to you.

  • Additional Features and Services: Some providers offer extra services like auto-conversion to fiat currency, recurring billing options, customizable checkout experiences, and detailed analytics. Assess these features in light of your business needs to enhance your crypto payment processing.

When choosing a cryptocurrency payment processor, it's crucial to weigh factors like security, user experience, cryptocurrency support, fee structure, and additional services. A well-chosen provider will not only ensure secure and efficient transactions but also support the growth and adaptation of your business in the evolving digital currency landscape.

Advantages and Disadvantages of Payment Gateways

Cryptocurrency, by its design, is decentralized and offers a level of anonymity. This system simplifies exchanges between two parties. Yet, some merchants may hesitate to accept digital currency due to a lack of understanding or skepticism about its functionality.

Understanding the pros and cons of payment gateways is crucial for deciding how to handle digital currency payments.


  • Payment gateways mitigate the anonymity issue, ensuring you know who you're transacting with while preserving your customer's preference for privacy.

  • They provide a point of contact for any payment-related issues.

  • Gateways enable global payments in various cryptocurrencies accepted by your provider.

  • Funds are securely held in an account with your provider before being transferred to you.

  • They eliminate the need for merchants to delve into the complexities of cryptocurrency.

  • Gateways reduce volatility risks by guaranteeing the market rate for the cryptocurrency at the time of transaction, protecting you from value fluctuations during transaction verification.


  • Payment gateways introduce a third party, contrary to the original cryptocurrency ethos of bypassing intermediaries.

  • Dependence on the provider's reliability is crucial, especially for receiving global payments across different time zones.

  • Gateways, as service providers, may market their services as essential, although direct cryptocurrency transactions are possible without them.

  • Transaction fees are typically higher with gateways compared to using a personal cryptocurrency wallet.

  • There is a risk of losing funds in your provider's account in the event of a security breach or hacking incident.

It's important for businesses to weigh these factors to make an informed decision about integrating cryptocurrency payments. By understanding both the advantages and disadvantages, merchants can select a payment method that aligns with their business needs and customer preferences, navigating the dynamic world of digital currency transactions with confidence.


The core idea of cryptocurrency is to eliminate intermediaries in financial transactions, which aligns well with those who are comfortable with technological change and understand its implications. However, for many, especially in a world long reliant on tangible assets for value, cryptocurrency remains a complex and novel concept. The transition to a predominantly credit and debit-based transaction system in developed countries is still a recent shift, and the idea of not using physical money can be challenging to grasp.

Skepticism towards new financial technologies, especially those involving money, is common. While using cryptocurrency payment gateways is not a necessity for conducting digital currency transactions, they play a vital role in alleviating concerns such as confusion, misinformation, and the risks associated with a decentralized, unregulated value system.

For business owners who are well-versed in cryptocurrency, accepting it directly might not pose any issues. However, considering that small businesses form a significant portion of the U.S. economy, not all business owners may be familiar or comfortable with cryptocurrency. For those who have reservations, a crypto payment gateway can be invaluable. It bridges the gap by facilitating immediate conversion to fiat currency, allowing business owners to manage their finances traditionally while offering their customers the flexibility of digital currency payments. This approach helps in integrating the new with the familiar, ensuring businesses can cater to diverse customer preferences without venturing outside their financial comfort zone.

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