One of the important features of BitPay's bitcoin payment processing platform is BitPay's ability to guarantee the exchange rate to our merchants on every order processed. Meaning, if a merchant asks BitPay to collect $150, as long as the buyer sends the payment within the time window, BitPay guarantees the merchant will receive exactly $150 minus our fee.
This feature has been a benchmark in BitPay's platform since its inception and launch in July 2011, but on days where the bitcoin price is more volatile, this feature is extremely important. For some merchants operating on thin margins, it may be the most important feature when evaluating payment processors.
is a precious metals dealer in New York which began accepting bitcoin payments in 2012. Amagi initially started with a different bitcoin payment processor that offered lower fees, but quickly switched to BitPay because the first processor could not work as expected.
"The customer support at BitPay was extremely prompt and professional, and the product just works amazingly well." says Stephen Macaskill of Amagi. "We operate on a low-margin business, selling high-dollar items. We cannot afford any volatility risk in our payment processing, and BitPay is the only bitcoin processor that offers this rate guarantee."
Most other bitcoin merchant services will wait for multiple block confirmations on the incoming bitcoins, which could take an hour, sometimes longer, and then issue a market sell order to give the merchant a balance in their local currency. On days like March 6 where the price of bitcoin dropped by 15% in a single hour, the merchant would assume the full 15% loss on the sale because of the price volatility.
Macaskill continues, "While other bitcoin merchant services offer lower fees, and sometimes zero fees, if we lose even 2% because of the volatility we've completely wiped out anything we hoped to gain by getting free processing. The guaranteed exchange rate from BitPay is absolutely essential for our business."
In addition, BitPay's platform offers merchants the reporting their accountants need, where the gross sales, processing fees, and net sales are all cleanly reported in the merchant's local currency. This offers a tremendous time savings for accountants trying to reconcile and record the revenue received over the bitcoin network. Using another bitcoin processor that doesn't have local currency reporting, a merchant may waste more in their accountant's time than the revenue they generate.
Amagi is using the Magento Bitcoin Plugin from BitPay, which embeds the bitcoin payment instructions inside the Magento OnePage checkout, so the shopper never has to leave Amagi's website to complete the purchase using bitcoins.
If you would like to accept payments over the bitcoin peer-to-peer payment network on your website, visit https://bitpay.com