Businesses around the world are finding that designing and using a Bitcoin strategy pays off — just ask Overstock and TigerDirect.
Second, Bitcoin is user-friendly; it offers easy transactions with lower rates than credit cards and other advantages. The simple announcement of “Bitcoin accepted here” carries media attention with it. Users of Bitcoin will also go out of their way to help a Bitcoin company.
But how can a family restaurant or a small online retailer start processing Bitcoin payments and get a good seat on this bandwagon, actually?
Step 1a: Creating Your Bitcoin Address
First, you’re going to need a Bitcoin wallet. This is the address where customers send their money and the mechanism works like email: enter your address (or, more likely, scan your QR code with your smartphones), enter the requested amount, and press “Send.”
Like a cash register, at the end of the workday, you’ll just need to take the money out and put it somewhere safe. In general, keeping tiny quantities of bitcoins on your computer, tablet, or server for regular use is good to practice. Maybe you want to store the bulk of your money in a safer place.
On the Internet, tutorials on exactly how to set up the Bitcoin wallet can be easily found. Also, don’t forget to use some good practices to protect your wallet.
Step 1b: Using a Payment Processor
If your sales process for direct Bitcoin payments into a wallet is a little too complex, or if you manage multiple transactions during your business hours, then consider using a payment processor.
Payment processors will charge their services either a percentage or a monthly fee, but their rates are still much cheaper than what credit card firms or PayPal charges.
In addition, payment processors can provide some of their technology applications: you can send email invoices, set up a POS (useful while running a restaurant or cafe, for example), or add a shopping cart plug-in to your online store.
Finally, if you don’t want to hang on to your Bitcoin (say your suppliers and landlord want fiat cash), then these kinds of processors will immediately turn your bitcoins into fiat.
Step 2: Advertise Bitcoin Acceptance
It helps a lot in telling the customers you are actually accepting Bitcoin. If you have an online shop, grab this “Bitcoin Approved Here” button and put it on your screen, preferably next to wherever you already have your PayPal, MasterCard, Visa, and any buttons.
Get identical stickers for your door or cash register here if you have a brick-and-mortar store.
How your business start working with Bitcoin
Businesses around the world are discovering that it pays to develop and employ a Bitcoin strategy — just ask Overstock and TigerDirect.
Firstly, Bitcoin is easy to use; it provides fast transactions with lower costs than credit cards, as well as other benefits. Simply announcing “Bitcoin accepted here” brings with it news media attention. Bitcoin users will also go out of their way to support a Bitcoin business.
But how can a family restaurant or a small online retailer actually begin processing Bitcoin payments and get a good seat on this bandwagon?
Step 1a: Creating Your Bitcoin Address
First, you will need a Bitcoin wallet. This is the address where customers will spend their money, and that process works a lot like email: they input your address (or, more likely, scan your QR code with their smartphones), enter the desired amount, and hit “Send.”
Like with a cash register, you will probably need to take the money out at the end of the business day and store it somewhere safe. In general, it is good practice to keep only small amounts of bitcoins on your computer, mobile, or server for everyday use. You may want to store the bulk of your funds in a safer environment.
On the Internet, you can easily find tutorials on how exactly to set up the Bitcoin wallet. Don’t forget to use some best practices for securing that wallet, too.
Step 1b: Using a Payment Processor
If your sales process is a little too complicated for direct Bitcoin payments into a wallet, or if you handle many transactions during your business hours, then consider using a payment processor.
Payment processors will charge either a percentage or a monthly fee for their services, but their prices are still far cheaper than what credit card companies or PayPal charges.
Furthermore, payment processors will offer a few applications of their technology: you can send email invoices, set up a POS (useful if you are running a restaurant or cafe, for example), or add a shopping cart plugin to your online shop.
Finally, if you don’t want to hold onto your Bitcoin (say your suppliers and landlord want to cash in fiat), these kinds of processors can convert your money into fiat instantly.
Step 2: Advertise Bitcoin Acceptance
It helps a lot to indicate to your customers that you do, in fact, accept Bitcoin. If you have an online storefront, grab the “Bitcoin Accepted Here” button and paste it conspicuously on your site, ideally beside wherever your PayPal, MasterCard, Visa, and whatever buttons you already have are.
If you have a brick-and-mortar establishment, grab similar stickers for your door or cash register here.
Step 3: Bookkeeping and Taxes
Some accountancy firms which specialize in Bitcoin and other cryptocurrencies are beginning to emerge. One example of that is bitcountant.
Tax Ninja is another company in San Francisco that can manage tax issues related to bitcoin. Compliance with tax obligations under the IRS guidelines is fairly straightforward for American Bitcoin companies, Tax Ninja founder Matthew Whatley told Businessweek in March.
