Get Payment Processing for Your Cryptocurrency Business
Cryptocurrencies have become the new gold rush. Everywhere you look, someone is talking about buying Bitcoin or Ethereum. From $1.49 billion in 2020, the cryptocurrency market is projected to grow to $4.94 billion by 2030. As more consumers and companies adopt this financial technology, operating a cryptocurrency exchange can be a very rewarding business.
Virtual currencies are exploding in popularity and offer unlimited future potential. With all the hype surrounding this industry, it’s easy to think that banks would embrace crypto businesses with open arms. On the contrary, banks stay away from this industry and refuse to provide payment processing services because they regard crypto exchanges as high-risk businesses.
Specialists in high-risk payments, SeamlessChex is the high-risk cryptocurrency payment processor you need to thrive in this booming industry. Browse our high-risk cryptocurrency merchant account services to find the best solution for your needs:
Why are Crypto Exchanges Considered High Risk?
Cryptos are no longer the domain of nerds. Cryptocurrencies have gone mainstream. Major companies like Microsoft, AT&T, and Starbucks now allow consumers to make payments in cryptocurrencies. So why do traditional banks shun cryptocurrency exchanges? Below are some reasons why you need to work with a high-risk cryptocurrency payment processor:
Established in 2009, cryptocurrency is a relatively new industry. While recognized as currency by some countries, cryptos are regarded as property in the US. Due to these ambiguities, most banks don’t know how to deal with cryptos, so they shun them to avoid unnecessary risk.
Cryptocurrency is a highly volatile market. From $62.6K in April 2021, Bitcoin crashed to $29.7K in July 2021. In these situations, many people will file chargebacks to reverse the purchase and get their money back. This is why banks consider cryptocurrency merchant accounts to be high risk.
Money Laundering Concerns
Another reason why banks perceive cryptocurrency payment processing to be high-risk is due to money laundering concerns in the industry. In 2019, criminals laundered more than $2.8 billion through crypto exchanges. Processing crypto payments can get banks into legal trouble.
Since you’re offering digital currencies, you can only sell online. And to sell online, you must process card-not-present (CNP) transactions. Fraud is 81% more likely to occur with CNP transactions than in-person payments. This makes your business a financial risk to banks.
Industries for Crypto Businesses Include:
- Crypto Mining Hardware
- Crypto Software Services
- Cryptocurrency Exchanges
- Initial Coin Offerings (ICOs)
- Crypto Money Services Businesses (MSBs)
- Crypto related businesses
Don’t see your industry listed? Talk to a Seamless Chex representative today to see if a cryptocurrency merchant account is right for you!