Should your business accept Bitcoin payments?

Should your small business accept Bitcoin payments? A newly released Entrepreneur Magazine story listed the pros and possible hazards of accepting these virtual payments. You’d be wise to consider both the rewards and possible dangers of accepting these payments that are growing ever more popular in the online world.

What they do

As Entrepreneur explains, Bitcoins are virtual currency. Individuals purchase them with real money and then exchange them online to buy products and from a number of vendors – some reputable, some illegitimate – in the virtual world. According to Entrepreneur, a growing number of reputable vendors – such as Reddit and WordPress – are accepting these virtual coins.

How safe is it?

Businesses do take on a safety risk whenever they decide to accept Bitcoins. But it’s the same risk they take with all online financial transactions. There’s no guarantee that a cybercriminal won’t hack their Bitcoin transactions. These transactions are encrypted. But that’s insufficient to deter the smartest of cybercriminals.

The benefits

Why would any business choose to accept Bitcoin payments? To begin with, these payments have no credit card or bank transaction fees. They also aren’t subject to taxes. And if more online vendors are accept Bitcoins, it may be a trend you don’t want to miss.

Posted on: 07.30.14