Many businesses now know the potential of cryptocurrency payments. That’s why this payment method is expanding. The same has been noticed on Coinremitter. Day-by-day increments in registrations are evident. However, this popularity comes with a challenge. The challenge of making the wrong choice.
Choosing the right crypto payment gateway is quite important. A wrong platform choice can bring many disadvantages. Setting those disadvantages aside, let’s discuss the hidden costs of choosing the wrong payment gateway.
Unwanted and Undeclared Transaction Costs
Every payment platform charges fees, be it a crypto payment gateway or a traditional gateway. These fees cut down your profit margins. The higher the fees, the lower the profits. A platform with higher fees can eat a big part of your profits. As a result, you either have to compromise your profits or inflate your pricing.
Hidden costs are another headache. Fees that are not mentioned on the platform may appear during settlements out of nowhere. In this case, a business may have to bear a loss and be prepared for the next transactions.
What to Do?
- Look for Transparency: Go with the platform that clearly mentions all the fees.
- Prefer Cryptocurrency Payments: Crypto transaction fees are lower than traditional transaction fees, especially for international payments. You can accept crypto payments to pay lower fees.
- Compare Transaction Costs: Check transaction and platform fees of the gateways you are going to use. Go with the lowest one, but keep reliability and transparency in mind.
Complex Integration May Increase Costs
Developing online payments on your platform consumes too much time. So, businesses rely on integration. Most businesses perform integration to accept crypto payments. However, it hurts when the integration process turns out to be complex.
Integration options with many cryptocurrency payment gateways may not be easy for everyone. This may consume your time. You may also have to hire a dedicated developer for crypto payment integration if the process is complex. That also adds some cost.
What to Do?
- Multiple Integration Options: A payment gateway should have multiple integration options. So, businesses can choose according to their convenience.
- Plugins/Installation Files: A platform should offer plugins for easy integration. For example, our crypto payment gateway has plugins. They may not support every single platform, but they cover major ones. So, integration on supported platforms can be done just by installing some files.
- No-Code Solutions: The platform should offer integration options without manual coding. For example, our crypto gateway has widgets. Here, you can set your preferences and get auto-generated code or a URL to integrate it into your website.
Chargeback Costs
A chargeback occurs when a customer disputes a purchase. This cost comes as a surprise, especially when the purchase is legitimate. In this case, you may lose both the product and the payment. Chargebacks have become a nightmare for many business owners.
The story doesn’t end here. The chargeback fee increases your costs. This means you lose your payment and pay your service provider for the chargeback. If you have to face this even if there is no mistake in order processing, then it may hurt.
What to Do?
- Go with a Lower Chargeback Fee: You can choose a platform that charges a minimal chargeback fee. This won’t prevent chargebacks, but it will at least minimize your costs.
- Accept Payment in Crypto: This is the best way to avoid chargebacks, as cryptocurrency payments are final once made. No one can dispute a transaction made in crypto.
Some Other Key Considerations
- Gateway outages may also slow down your platform’s checkout. So, a customer may switch to your competitor. This can be minimized with a platform that has low downtime. Coinremitter has 99%+ uptime. If you accept crypto payments, you can check out our platform to offer a stable checkout experience.
- A well-documented API can also cut down integration costs. You can check our crypto API docs. We offer high API rate limits. Low rate limits may be slow for growing businesses. Higher limits can support your business well.
- A vulnerable platform can cause a big fund loss. Our cryptocurrency payment gateway has dedicated security features, so your account and funds can be safe from cyberattacks.
Final Words
Transaction costs can never be avoided. It is a must for any traditional or crypto payment gateway provider to keep the platform running smoothly. But hidden costs in the name of transaction fees aren’t acceptable. On the other hand, complex integration and chargebacks can also increase your costs.
When it comes to transaction costs, you can not eliminate them. However, you can minimize them with our low-fee crypto payment gateway. Other costs are avoidable if you make the right choices. The wrong one may increase your costs, and you will have nothing in the end.
FAQs
What are hidden costs when accepting crypto?
Hidden costs are any costs that aren’t declared before you use the platform. They may appear anytime, anywhere, and ruin your financing.
Does Coinremitter charge any setup or monthly fees?
As of now, there are no setup fees. Monthly fees are there if you want to enjoy premium benefits. However, accepting cryptocurrency payments is still possible with the free plan.
What are Coinremitter plugins?
Crypto payment plugins are installable files for some platforms. You can install them on your website to accept online crypto payments without coding.
Does Integration with Coinremitter add any cost?
Generally, no. Coinremitter crypto payment solutions are absolutely free of cost. Most of them can be used without any developer support. So, you won’t need to hire any developer.
How to handle refunds if there are no chargebacks in cryptocurrency payments?
You can let customers contact you and listen to their refund inquiries. You can process refunds manually if you find their inquiries to be genuine.