Also called: BTC
What Bitcoin is
Bitcoin is a digital currency, identified by the ticker BTC. When a customer pays with it, the transfer is recorded on the Bitcoin blockchain rather than processed through a card network or traditional bank payment rail.
For your business, accepting Bitcoin means choosing how to receive and manage the funds. A payment service can handle the blockchain steps and convert the payment to dollars, or you can receive Bitcoin directly into a wallet you control.
Bitcoin avoids card-network fees, but conversion, network costs and price exposure still affect what your business keeps.
How a Bitcoin payment works
At checkout, the customer scans a QR code or uses a payment request to send BTC from a wallet to the address for that order. The checkout displays an amount based on an exchange rate, and the Bitcoin network records the transfer as it is confirmed.
Confirmation is not the same as a card authorization. A Bitcoin payment can take 10 to 60 minutes to confirm, so decide when an order is considered paid before releasing goods or services. For a high-value payment, the Bitcoin developer guide recommends waiting for six confirmations, which represents about an hour.
What Bitcoin means for your costs and risk
Bitcoin payments do not use card interchange or card-network assessment fees. That does not make acceptance free: a payment service may charge a merchant fee, the exchange rate may include a spread, and a separate network fee goes to miners. No universal Bitcoin merchant fee amount is established in the available fee information.
If a service converts each payment to dollars, your business avoids holding Bitcoin and taking on later price changes for those converted proceeds. Keeping BTC in your own wallet leaves your business exposed to price gains or losses and adds responsibility for wallet security and access. Record the fair market value when you receive Bitcoin and track any later gain or loss if you hold and sell or convert it.
A confirmed Bitcoin transfer cannot be reversed through a card-network chargeback. You still need a clear refund policy and a reliable way to match each payment to an order. Sending a refund to the wrong address can make funds difficult or impossible to recover.
What you can actually change
You control whether you accept Bitcoin directly or through a service, whether proceeds are converted to dollars, and how your checkout handles confirmation, refunds and records.
- Set a confirmation rule before fulfilling an order, with extra confirmation checks for high-value payments.
- Show the exchange rate, quote expiration and refund terms before the customer sends payment.
- Compare service charges, exchange-rate spread and network fees with your current payment costs.
- Use a separate receiving address for each order and reconcile payment details against sales records.
- Choose your settlement method. Decide whether each Bitcoin payment converts to dollars or stays in a wallet your business controls.
- Set fulfillment rules. Document the confirmation standard for releasing orders, especially when the sale amount is high.
- Track the full cost. Record service charges, exchange rates, network fees and the dollar value of Bitcoin received for each sale.
Frequently asked questions
Does accepting Bitcoin cost less than accepting cards?
Bitcoin acceptance avoids card interchange and card-network assessments, but it does not guarantee a lower total cost. A payment service charge, exchange-rate spread and Bitcoin network fee can still apply. Compare the complete charges and conversion terms with your current card costs.
Can a customer reverse a Bitcoin payment?
A confirmed Bitcoin transfer is irreversible and does not have a card-network chargeback process. Your business remains responsible for refunds under its own policy, so specify how refunds are handled and verify the destination address before sending funds.
How long does a Bitcoin payment take to confirm?
A Bitcoin payment can take 10 to 60 minutes to confirm. The time depends on network conditions and the confirmation standard your checkout uses. For high-value payments, the Bitcoin developer guide recommends waiting for six confirmations, about an hour.