What Requirements Must You Meet to Acquire a Bitcoin Merchant Account


Many businesses are joining the trend of accepting Bitcoin and other cryptocurrency payments. They range from small to big companies, reaching a broad customer base continually taking this mode of payment. Additionally, many merchant accounts are widening their currency base to attract this user base, allowing cryptocurrency processing.

Bitcoin is one of the leading decentralized cryptocurrencies. It has grown in value, with over 50 million people worldwide using it. This fact makes acquiring a Bitcoin Merchant Account a priority for many businesses.

What is Cryptocurrency?

It is a digital currency used to buy goods and services. Cryptocurrencies use blockchain technology, introduced in the market in 1991. Blockchain is the database that records and distributes digital information while preventing it from being edited. It makes cryptocurrency secure because of this tamper-proof design. However, Bitcoin was introduced in the market in 2009, and others have emerged.

What Is Bitcoin Merchant Account?

A bitcoin merchant account allows businesses to accept payments in bitcoin. They can do so from anywhere in the world. This option will enable them to accept payments in person or from their businesses.

Requirements for a Bitcoin Merchant Account

Various online payment gateways support cryptocurrency merchant accounts, which come in custodial and non-custodial forms. 

Custodial merchant accounts services take ownership of the bitcoins as they pass through. These merchant accounts ensure the business owner does not take possession of the coins only after a payout. They can also be paid out in cash directly to the bank. This aspect limits the merchant’s exposure to cryptocurrency.

Non-custodial means the merchant never controls the bitcoins. They are more cryptocurrency processing minimalistic services. There are benefits and cons to each method. However, setting up a custodial account requires more than a custodial one. To apply for Bitcoin Merchant Account, one will need:

  • At least six months of payment processing statements. These statements should show the business name, returns, refunds, and total sales.
  • The business’s six months bank statement
  • Necessary know-your-customer (KYC) documents. They include the IDs of the directors and owners
  • Certificate of incorporation
  • Local company documents as per its location. It should display the company owners and directors

How to Accept Bitcoin Payments

Merchants should generate a wallet address to accept payments on their sites or shops. The customers can then use the code when making payments. Notably, they can do these transactions without integrating a payment processing account.

However, with this method, business owners must do the invoicing. Additionally, it requires a personalized checkout system.

For this reason, cryptocurrency processing gateways are more convenient. These systems easily integrate with many eCommerce platforms. To accept crypto payments, one will need:

  • A Cryptocurrency Wallet: This requirement is only optional if a merchant wants a custodial payment gateway. If not, they will need crypto wallets compatible with bitcoins. They can choose one offering multiple cryptocurrencies to attract more customers.
  • Cryptocurrency Processing Gateway: These gateways include Coinbase commerce, Bitpay, Coingate, and others. It allows integration with the existing POS.
  • Customer with a crypto wallet. A user should be able to make payments through their crypto wallet.
  • Website: eCommerce and other businesses can process through their merchant accounts online.
  • Terminal: It is an option for merchants seeking to access payments in one place. They can integrate the compatible terminal with their POS.

Choosing a Bitcoin Payment Processor

There are various payment processing services available to streamline this growing niche. They reduce a business’s exposure to cryptocurrency volatility and integrate well with existing POS systems.

Notably, cryptocurrency is still a highly-unregulated industry. For this reason, one must research to find bitcoin merchant accounts with a good reputation.

Benefits of Using Bitcoin Merchant Accounts

One of the benefits of using cryptocurrencies is appealing to a wider customer base. Additionally, these accounts are safe as customers pay using codes that are virtually hard to crack. Customers can also keep their transactions anonymous. Additionally, merchants can see this as a form of investment.

When clients hold on to cryptocurrency, it accumulates in value, and they can sell it. This aspect yields more results than the initial investment.


Cryptocurrency is no longer an unfamiliar term. Many people are now trading in bitcoins and other currencies. They are also using them to buy goods and services. Additionally, they want to purchase bitcoins using their debits and credit cards easily.

For this reason, owning a Bitcoin merchant account is crucial for anyone seeking to sell or receive payments in digital currencies. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.