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Author: Admin | 2025-04-27
And added to the blockchain. This process secures the transaction and makes it immutable.Once the transaction is confirmed on the blockchain, the cryptocurrency processor verifies the payment and notifies the merchant that the transaction is complete.According to the merchant’s preferences, the processor either converts the cryptocurrency into the merchant’s chosen fiat currency and transfers it to their bank account or credits the cryptocurrency to the merchant’s digital wallet. This process involves leveraging the processor’s liquidity pools or external exchanges to facilitate the conversion.5. Reporting and ReconciliationImportantly, merchants are provided with detailed transaction reports, enabling them to reconcile payments received with orders placed, manage their accounting, and track their cryptocurrency holdings if they choose to retain some payments in digital form.While this is a typical flow for a merchant looking to accept crypto payments, things can get more complicated depending on the case. For example, with play-to-earn gaming, channels would likely need to be set up as a payment method to handle a very large number of quick-fire transactions occurring over a short period of time, especially for currencies such as Bitcoin.Types of Crypto ProcessingThere are more ways to process crypto transfers than you might think. Let’s take a look at the three main methods.Cryptocurrency Payment Gateways: These platforms act as intermediaries between merchants and customers, enabling businesses to accept cryptocurrency payments for goods and services. Payment gateways convert received cryptocurrencies into fiat currency or allow merchants to keep them as digital assets.The most common payment method observed in this case is where users make payments directly from their digital wallets by scanning a QR code or entering the recipient’s address. Wallets can be software-based (mobile or desktop applications) or hardware-based (physical devices).Should they wish, merchants can generate payment links through their cryptocurrency payment gateway service, which can be sent to customers via email, SMS, or messaging apps. Clicking the link directs the customer to a payment portal where they can complete the transaction.Also, for online merchants, integrating a “Pay with Crypto” button on their checkout page with the help of their crypto payment system allows customers to easily select their preferred cryptocurrency as a payment method, enhancing the user experience for crypto-savvy shoppers.Crypto Point of Sale (PoS) Systems: Designed for physical retail environments, crypto PoS systems allow merchants to accept cryptocurrency payments in-person using dedicated hardware or software solutions. Customers can pay by scanning a QR code using their mobile
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