Cryptocurrency Payment Gateway: If you think the payments you make using cryptocurrencies are cleared out of nowhere, perhaps you are thinking the wrong way. It would help if you understood that there is always a payment gateway that works to clear the payments you make using Fiat money or cryptocurrencies.
It is the payment processor and is also related to a few parties. In the case of cryptocurrencies, these parties are the cryptocurrency companies, and the work for clearing your payment is 24 x 7 so that you can make money. In case you face any problems in the cryptocurrencies, perhaps there is a payment gateway failure, or it can be some other issues from the side of the company.
But, a payment gateway is a basis for every cryptocurrency transaction you make; therefore, having a clear understanding of it will be a plus point for you. Also, you may read articles online other popular cryptocurrencies other than BTC.
Today, every digital currency has to make sure that it has a payment gateway to transfer it from one place to another. For example, there are two bitcoin wallet addresses, and to send the cryptocurrencies from one to another, you need to make sure that there is a payment gateway in the middle.
These gateway services are provided by a third party or a cryptocurrency company. Most of the time, the company regulates this action because avoiding the third party is very important to secure cryptocurrency transactions. So, you should know that it is a function performed by the cryptocurrency company only, and you can get a lot of perks because of the high degree of security. So, understanding this is crucial, and we will provide you with details today.
Also Read: What is Bitcoin? How to buy bitcoin in India?
How does it work?
The working of the payment gateway is crucial because cryptocurrency payments are made using the digital wallet. Therefore, to facilitate the transaction, the merchants and the customers have to make sure that there is a payment gateway in the middle, which is why the process followed by the payment flow is given below.
- First, the customer purchasing any service from U has to make the cryptocurrency payment on his part. Then, you can use the in-store application, or he can do so with the help of a web-based application.
- Then, when the partner makes the payment, the equal digital currency amount will be translated by the third party. So, if he is making the payment in cryptocurrencies, the payment gateway will ensure that the Fiat money is transferred into your account.
- The cryptocurrency payment service will be converted into the payment you want. If you choose to get it as Fiat money, it will be credited as Fiat money to your account. On the other hand, if you decide to go with cryptocurrency only, you will get a digital token in your account.
- Then, the money will be added to your account by your bitcoin wallet partner, and you can quickly deposit it into your bank by transferring it to the banking account. The process is straightforward and sophisticated; therefore, there is nothing complicated with the payment gateway process.
The process is very transparent; therefore, you are not supposed to worry about anything when using cryptocurrencies to make a transaction. Also, the service provider will provide you with appropriate funds to make a transaction and still have some balance in your account.
Fee
Every company has a fixed charge for these services, like the payment gateway. Sometimes, this charge is taken by the company from the customers and the users, while sometimes, it is paid by the company which is getting the services. In both cases, you will be the person who will pay this kind of charge. It is a service that is crucial for making transactions; therefore, this kind of fee structure is very crucial.
If you understand the fee structure, you will learn a lot. You should know that the payment gateway will charge a fixed amount from the company which is getting the services. It is the company providing you with the cryptocurrency wallet or the platform through which you can transact the crypto coins.
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