In recent years, there has been a necessary shift from using fiat currency to using cryptocurrencies for making digital payments, and even more necessary is the need for small and medium-sized enterprises (SMEs) to accept payment in digital currencies.
By embracing crypto payments, SMEs can tap into a global market and attract tech-savvy customers. However, concerns regarding volatility and fees often deter businesses from fully embracing cryptocurrencies. This article will discuss three proven ways for SMEs to accept payments while keeping as much as 99% of their income.
1. Utilizing Cheap Blockchain Networks to Make Payments
Transacting on some blockchain networks can be a huge deal, with transaction fees of as much as hundreds of dollars depending on different factors such as the transaction type, network congestion, etc. For example, the Ethereum blockchain has very high gas fees. However, other blockchain networks, like Solana or Layer 2 solutions like Polygon, exist.
It is advised for businesses that process high volumes of transactions regularly to use these cheap blockchain networks with lower transaction fees. Processing relatively tiny amounts in traditional payment systems can be wasteful due to set rates, but with cheap blockchain networks, businesses can allow transactions involving small sums of money without incurring disproportionately large fees.
Additionally, businesses can accept payments with multi-chain cryptocurrencies, such as USDT and USDC, so as to experience flexibility and freedom to choose the most effective blockchain network at the moment. Hence, potentially avoiding high fees due to network congestion on a particular, preferred blockchain network.
2. Properly Classifying Small Business Income and Assets for Tax Purposes
It is critical to correctly define a business's crypto revenues as either an asset or income in taxation because this impacts how these earnings are taxed and reported to the tax authorities. The classification affects tax treatment and can have a major impact on the amount of taxes owed by a corporation.
This is important because the tax rules for assets and income differ greatly. If cryptocurrency earnings are considered assets, they may be subject to capital gains tax when sold or traded. If they are classified as income, however, they may be subject to regular income tax rates, which might be higher or lower depending on the overall income of the business.
Assets and income have different tax forms and reporting requirements. Accurate classification ensures that the company files the correct tax forms, lowering the risk of audits or penalties due to underreporting. CCPayment allows you to organize your crypto assets by orders, income, expenses, refunds, and other filters. At a glance, you may see your asset movement and order details. This accounting feature can help you keep track of all your income, assets, etc.
3. Utilizing A Crypto Payment Gateway
A payment gateway serves as the connection between SMEs, blockchain networks, and customers for easy payments. Integrating crypto payments using a crypto payment gateway like CCpayment is the most straightforward and effective way for SMEs to experience seamless and cost-effective customer payments.
Some businesses still use credit card companies that are highly susceptible to cyber-attacks. However, crypto payment gateways like CCpayment secure transactions and sensitive details directly on the blockchain. CCpayment provides a contactless and seamless payment method for small-scale businesses that need to save all their income and keep them from paying high transaction fees.
CCPayment charges only 0.03% on API transactions. As a result, businesses that use CCPayment can save a whopping 99.97% of their income, thereby protecting profit margins.
Aside from the lack of security and the high transaction fees, businesses still face an unlikely but dangerous fear – chargebacks. When credit card companies process payments for businesses, and there's a fraudulent or disputed transaction, the merchant or business usually incurs an extra cost through a fee charged by the card issuer. This extra cost is bad for SMEs trying to reduce their operational costs. With a crypto payment gateway like CCpayment, this fear is eliminated, and SMEs can be ensured to retain at least 99% of the income generated.
Why You Should Accept Crypto Payments Using CCPayment
CCPayment prides itself on being a crypto payment gateway that offers one of the cheapest transaction fees in the market. CCPayment offers a 0.03% service fee on API payments, allowing small and medium-sized enterprises to maintain and increase their profits. There is also zero cost when transferring funds between CCPayment and Cwallet.
Over 45 cryptocurrencies can be processed through the payment gateway CCPayment on a single checkout page. Additionally, it offers a secure, contactless, and seamless checkout process.
Here are some of the benefits that SMEs can get when they use CCPayment;
- Advanced data encryption for security
- 0.03% service fees on API payments
- Asset overview and management
- Simple integration with existing platforms
- Numerous crypto options and assistance in over 80 countries are available.
In conclusion, accepting cryptocurrency payments can be a game-changer for small and medium-sized firms (SMEs) looking to improve their financial flexibility and acquire a competitive edge in today's market. By implementing the abovementioned techniques, SMEs can confidently accept crypto payments while protecting 99% of their income.
To stay ahead of the curve as the crypto landscape evolves, SMEs must remain adaptable and adopt evolving technologies and processes. SMEs can develop a sustainable road to prosperity while navigating the volatile world of cryptocurrency payments with careful planning, strong alliances with a platform like CCPayment, and a customer-centric attitude.
Register with CCPayment today and maintain your profits.