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5 Reasons to Accept Bitcoin for Bill Payments
Posted on Oct 31, 2014
US Dataworks is always looking for new ways to make payment processing simpler, which is the driving force behind our Clearingworks - Integrated Receivables Platform that is trusted to process more than $10 billion a day in receivables payments. While processing this type of volume has uncovered various complexities involved in check, ACH, wire, and card payments, we believe some of this can be simplified through digital currency offerings like Bitcoin.
Here are five reasons businesses should consider accepting Bitcoin for bill payment:
- Immediate credit. Bitcoin processed through an offering like Coinbase, the world’s most popular bitcoin wallet, is an immediate transfer of value. There is no waiting for authorization, clearing and settlement.
- No Interchange fees. Many B2B billers and property management companies are stuck paying high interchange fees in order to accept various types of card payments. However, accepting bitcoin eliminates fees for payments received. The fee for converting bitcoin to dollars is just 1%, and for the first $1,000,000 it is free.
- International Payments. While international trade payments often involve a complex network of banking relationships, expensive fees and delays in available funds, bitcoin makes cross-border payments easy and seamless.
- Payment and Remittance Information. Every day we see businesses struggle to reconcile electronic and ACH payments with invoices previously sent to customers. Bitcoin payments are immediate and can be easily recorded, eliminating confusion around whether invoices have been paid.
- Protects Personally Identifiable Information. While traditional payment methods (including checks and credit cards) require the biller or supplier to collect payment from the payor’s account, bitcoin transactions are push payments, meaning billers don’t have access to private customer information like checking account and credit card numbers.
We will be speaking on bitcoin at the annual Association for Financial Professionals Conference #afp2014 in Washington, D.C. on November 5. Look for an exciting product announcement we will be making during that conference.