Many зущзду are familiar with the concept of banking processing. In simple words, this is the processing of non-cash payments that the buyer makes in favor of the seller using a bank card. The payment, before reaching the seller, undergoes verification, which involves several links: bank issuer, bank acquirer, and processing center.
Cryptoprocessing works in a similar way, except for the fact that there are no banks in this chain. When the buyer wants to pay for the purchase, the processing platform that processes the transactions accepts the payment request, debits the buyer’s crypto wallet, and transfers the funds to the seller.
There are pros and cons of cryptoprocessing that every business should consider before deciding to accept crypto payments from customers.
Main cryptoprocessing pros:
- Simplification of cross-border payments and access of small and medium-sized businesses to international markets. International transactions become almost instantaneous. More often, sellers and buyers do not even need to agree on the currency of settlement because most cryptocurrencies can be converted into any of them.
- No limits. Virtual currencies are stored in an e-wallet. You can have as many e-wallets as you want, the number and size of which are not limited.
- Security. Crypto is based on blockchain technology, which guarantees the storage of information about every single transaction. So, it is very difficult to hack your virtual funds in the crypto wallet.
Main cryptoprocessing cons:
- Lack of clear legal framework. In many countries, virtual currencies are still not regulated at the legislative level. In case of disputes, it will be complicated to resolve them because there is no legal basis on which you can rely.
- Processor dependency. If something happens to the crypto processor (technical failure, fraud, hacking, etc.), the money may freeze in the system, and it will be difficult to return it.
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