- Bitcoin Merchant Services
- Managing Bitcoin payments yourself
- Merchant payment protocol
Bitcoin Merchant services
- The simplest way to accept Bitcoin is to use a merchant service that converts Bitcoin to local currency and deposits it into a bank account.
- Accepting Bitcoin is similar to accepting PayPal
- Once carts are configured to accept Bitcoin there is generally no ongoing maintenance.
- Since transactions are irreversible funds can be deposited the next day and there are no chargebacks!
Managing Bitcoin payments yourself
- Bitcoin can be accepted yourself by simply opening up a Bitcoin wallet and getting a Bitcoin address.
- By using a Bitcoin wallet software wallet running on your computer there are no requirements, such as identity verification or even having a bank account.
- This requires the user to be responsible for security and backups!
- Offline “cold wallets” should be used for online transactions which means the secret “private keys” needed to spend the funds are always kept on an offline computer.
- Bitcoin addresses can be generated offline and assigned to customers as they pay.
Merchant payment protocol
- A new merchant payment protocol (BIP70) allows a user to connect directly to a merchant’s web site and process a Bitcoin transaction using an invoice.
- Micropayment are problematic since the transaction fee system is still in a state of flux and ‘spam” transactions could disrupt the system.
- Services offer “off-Blockchain” or private ledger transactions that are settled after many microtransactions.
References and Links
- Coinbase – Bitcoin Merchant services
- Bitcoin QR code generator
- Bitpay – Bitcoin Merchant services
- BitMonet.com – Paywall services
- Payment Protocols for Wallets