If you're a business owner, there's a good chance you've at least heard of Coinbase Commerce. It's been making waves in the world of online payments, and it's quickly gaining popularity among small businesses. But is it the right solution for your needs? Keep reading to find out.
What Is Coinbase Commerce?
Wallet and cryptocurrency exchange service Coinbase offers the enterprise-focused Coinbase Commerce service. In addition to Bitcoin, Bitcoin Cash, DAI, Ethereum, Dogecoin, and USD Coin, the service allows users to accept Litecoin. Whenever your customer makes a payment, the funds are directly deposited into your merchant account.
Using Coinbase Commerce, businesses can accept payments in a wide range of cryptocurrencies. Payment cards and money are not the only way to pay. Payments can be sent and received throughout the decentralized peer-to-peer system, which is accessible only by Coinbase and the merchant.
To access cryptocurrency and sign blockchain transactions, teams use seed phrases, which are 12 words long. Google accounts can be used to store seed phrases using the cloud backup feature. Webhooks allow merchants to be notified when a payment has been made.
How Can You Use Coinbase Commerce For Crypto Payments?
You can integrate Coinbase Commerce into your checkout workflow or add it as a payment option to your shopping portal, and it also supports multiple platform software. The integration allows for faster and more efficient transactions. Customer cryptocurrency payments are credited to your Coinbase Commerce account, which can then be transferred to your wallet.
If you have a valid email address and phone number, you can register for Coinbase Commerce no matter where you are in all the countries Coinbase is available. By using the Google Authenticator app, the two-factor authentication mechanism adds an additional layer of security.
The Coinbase Pro version may seem exclusive to professional traders, but anyone with a Coinbase account can use it. With it, you can place limit and stop orders, which are not available on Coinbase's main platform.
Keeping deposits and assets safe is Coinbase's top priority. It is important, however, to follow online best practices to safeguard your account information when using cryptocurrency.
In addition, 98% of customer assets are stored offline in a global network of safe deposit boxes, backed up both digitally and on paper. All website data is encrypted according to bank standards. Two-factor authentication is also required for all accounts to prevent others from logging into your account unless they possess your phone.
Despite strong security methods, thousands of users have been victimized by hackers and schemes that have drained their accounts. For financial websites such as Coinbase, it is crucial that you use unique, random passwords to prevent this type of loss. Always keep your phone number and email private in case someone gains access to them.
The future for institutional investors is brighter now that Coinbase Commerce gives them the ability to manage their cryptocurrency transactions wherever they are in the world.
So long as they have a computer, buyers can now trade with sellers. The Coinbase Commerce support also makes transactions feel safer and secure not just for the company but also for the people involved.
Is Coinbase Commerce Safe?
Security is frequently mentioned as one of the benefits of cryptocurrency. The downside, however, is that you cannot reset your account if you lose the key. Moreover, if your key is stolen, the thief can quickly and anonymously empty your account.
To secure transactions, Coinbase Commerce also uses seed phrase recovery. These seed phrases contain all the information you need to recover cryptocurrency funds on-chain.
Many crypto wallets come with seed phrase keeper features, and you can even purchase a physical metal wallet that engraves your seed phrase into it. Your seed phrase is required for every transfer, including refunds.
You can also integrate Coinbase Commerce into your apps by using application programming interface (API) keys.
Sellers like this, since they do not have to direct clients to a third-party checkout page if they want to accept cryptocurrency payments using their mobile apps. Integrations remain safe because API keys are protected.
By using this payment option, you will be able to easily adopt a credible cryptocurrency payment option and offer the same level of peace of mind to your customers. Thus, you contribute to your app or service's commercial success.
How Do I Use Coinbase Commerce to Accept Cryptocurrency Payments?
When you open a Coinbase Commerce account, you can also outline your wallet address directly online using the solution's hosted checkout process. Your website or app does not need to have separate checkout pages or processes.
Alternatively, you can use Coinbase Commerce's solutions to easily create premade checkout processes for your online property. This removes an important barrier to accepting payments.
The checkout process flow is designed to offer a modern checkout experience. In this way, your customers will also benefit from tried-and-true solutions that are also current with customer experience trends.
There are no fewer than 12 popular eCommerce platforms that Coinbase Commerce integrates with quickly, so you can quickly set up your payment services.
Through payment buttons and checkout flows, Coinbase Commerce simplifies the process of communicating crypto payments to your customers. In addition to their modern design and user-friendly interface, these integrations provide excellent customer service.
By reducing factors such as setup costs and time, you provide yourself with greater flexibility, a secured method, as well as convenience in accepting cryptocurrency payments.
Customers of Coinbase can make payments directly from their accounts using Coinbase Wallet. You can also make Coinbase Wallet payments available to your customers when you sign up for Coinbase Commerce.
The customer can then choose whether to use Coinbase Wallet to process the payment. Your audience will appreciate this flexibility in online transactions and it will add to your value as an online seller. As a result, your business will grow through innovative solutions.
The Coinbase Wallet is considered to be one of the most secure cryptocurrency wallet services available. You can also tap into an extensive network of customers who might already be using Coinbase Wallet.
Market fluctuations are all too common in the cryptocurrency market since it is highly volatile. You can expect these fluctuations across all cryptocurrencies unless you're using a stablecoin whose value is linked to a fiat currency.
Solutions with preset prices may have difficulty selling because of this. However, Coinbase Commerce can help solve this problem. By setting flexible payment thresholds, you have complete control and can choose to charge more or less than your list price.
You provide your customers with the option of adjusting their intended payments according to market conditions while still staying within your minimal costs. As a result, you can accept more sales without incurring a loss.
Is Coinbase Commerce Free?
Coinbase Commerce accounts are free to create and sign up for. However, all cryptocurrency transactions at Coinbase are subject to a flat 1% fee. Payments are facilitated by Coinbase Commerce, which provides transaction reporting tools to streamline accounting. Coinbase commerce offers flexible invoices, custom checkouts, and more; that's why there's a fee for cryptocurrency transactions.
The Coinbase fee will be deducted differently from your payments depending on how each blockchain processes transactions.
The transaction fee is automatically deducted from your customers' payment for digital currencies hosted on the Ethereum blockchain, such as USDC, DAI, and ETH. Your payment details and generated reports contain all information related to the transaction and fee.
You will be charged transaction fees when withdrawing crypto from your Commerce account for non-ERC-20 assets such as BTC, LTC, DOGE, and BCH.
In order to reflect the fees that will be deducted from a payment, you will see, collected upon withdrawal listed under Coinbase fees on the payment details. The amount you can immediately transfer to your Coinbase account is shown on your dashboard.
Hovering your mouse over the icon next to Available Balance will show you the total account balance as well as the fees owed to calculate your available balance.
When you accept cryptocurrency, you have to remember that you will be liable for taxes. Be sure to check out our article about crypto taxes for small businesses here.
Who Can Use Coinbase Commerce?
With Coinbase Commerce, businesses and merchants can accept cryptocurrency payments from anywhere in the world. It is ideal for anyone who is running a business. Even freelancers can benefit from using this payment processor.
It can also be added as a payment option on your shopping portal or integrated into your checkout process. Customers' cryptocurrency payments are credited to your Coinbase Commerce account, from where they can be transferred to a wallet of your choice.
If you are selling online, have an online store, manage eCommerce websites, or want to start accepting crypto for online payment, Coinbase Commerce is perfect for you.
Successful businesses accept multiple modes of payment solutions. Coinbase Commerce allows you to accept multiple cryptocurrencies in addition to your usual credit card or payment gateway.
Online payment has become crucial in eCommerce. As a business, it is safest to offer many payment methods so that customers can check out their shopping cart with whatever available financial resources they have, which includes cryptocurrency.
Square and Shopify versus Coinbase Commerce payment, processing fees, network fees, and transaction fees might be more complicated to understand.
Nonetheless, when it comes to the pros and cons of Coinbase Commerce payment and Coinbase exchange, the good definitely outweighs the bad. Private keys are also used to secure Coinbase exchange accounts, so rest assured this payment processor is safe and secure.
Start Accepting Cryptocurrency Payments With Coinbase Commerce Today
If you’re looking for an easy way to start accepting cryptocurrencies as payment on your website, Coinbase Commerce is the perfect solution. With Coinbase Commerce, you can easily accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash payments from your customers.
Plus, with its support team available 24/7 to help you get started, it’s easier than ever to start taking advantage of this growing trend in online payments.