Also called: Crypto, Virtual currency
What cryptocurrency is
Cryptocurrency, often called crypto, is digital value that people send between digital wallets. A blockchain records and verifies these transfers across a shared ledger. Bitcoin and stablecoins are two kinds of cryptocurrency, but their values behave differently.
When a customer pays you in crypto, the transfer moves from the customer's wallet to yours or to a payment provider's wallet. The payment is recorded on a blockchain, not processed as a card transaction through an issuer and card network. That means there is no card interchange on the crypto transfer.
A crypto payment avoids card interchange, but provider costs, conversion terms and price exposure still affect what reaches your business.
How a crypto payment reaches your business
At checkout, the customer selects a cryptocurrency and pays to a wallet address, often through a QR code or payment link. The blockchain verifies the transfer. The confirmation time depends on the cryptocurrency and network, so do not promise customers a universal payment or settlement time.
You can receive crypto directly in a wallet or use a payment provider to process the transfer. A provider can convert the payment to dollars and send fiat to your business account, or you can keep the crypto. Automatic conversion limits your exposure to later price changes, while direct receipt leaves you responsible for wallet access, security and reconciliation.
What crypto means for costs and risk
Crypto has no single standard merchant processing fee. Your provider's fee schedule, blockchain transaction costs, conversion terms and payout charges determine your expense. Compare those items separately with your card-processing costs; claims that crypto is always cheaper do not replace a fee-by-fee comparison.
The amount you receive can change if the crypto's dollar value moves before you convert or spend it. A stablecoin is designed to track a reference currency such as the US dollar, but that does not remove every price or issuer risk. Record the dollar fair market value when you receive crypto, and keep records of later sales or conversions for tax reporting.
A confirmed blockchain transfer cannot be reversed through the network. If you need to refund a customer, you send a separate payment, and the amount in dollars can differ if the crypto value has changed. Crypto payments do not use the card chargeback process, but you still need clear refund terms and transaction records.
What you can actually change
You choose how customers pay, whether you receive dollars or crypto, and how you secure and record the funds.
- Compare provider, blockchain, conversion and payout charges before accepting payments.
- Use automatic conversion if you do not want your sales balance exposed to crypto price changes.
- Restrict wallet access, use multifactor authentication and protect the keys that control your funds.
- Set refund terms and record the dollar value of each crypto payment when received.
- Compare all charges. Get a written breakdown of processing, blockchain, conversion and payout costs before you add crypto at checkout.
- Choose your settlement. Decide whether you want dollars deposited or crypto held in a wallet, then account for the price risk of that choice.
- Document each payment. Save the transaction record and dollar value at receipt so your sales, refunds and tax records reconcile.
Frequently asked questions
Is cryptocurrency cheaper for a business to accept than credit cards?
There is no standard crypto fee that makes it cheaper in every case. Your total depends on provider charges, blockchain costs, conversion terms and payout fees. Compare those charges with your card-processing costs using your own transaction mix.
Can a customer reverse a cryptocurrency payment?
A confirmed blockchain transfer cannot be reversed through the network. To refund a customer, you send a separate payment. The dollar value of that refund can differ from the original sale if the cryptocurrency price has changed.
Should my business accept Bitcoin or a stablecoin?
Bitcoin's dollar value can change, which affects the value you hold if you do not convert promptly. A stablecoin is designed to track a reference currency, such as the US dollar, but it still has risks. Your choice depends on customer demand, settlement preferences and how much price exposure you will accept.