How Crypto-currency Can Help Increase Your Website’s Security and Decrease Fraud
Crypto-currencies are all the rage, these days. The digital moneys, the most popular of which is Bitcoin, are constantly in headlines, as their volatile and unpredictable increases and decreases in value make some investors rich, while others lose their shirts. All of this makes the idea of incorporating crypto-currency into your website a daunting and complicated prospect. But in most cases, adding crypto functionality to your site’s checkout can not only attract new consumers eager to use their futuristic money, it can actually increase your site’s defenses against fraud. Here’s a few select reasons that crypto-currency can benefit your website.
1. Less Third-Party Involvement
The more parties are involved in your transactions, the more difficult it is to maintain security. When you incorporate third parties like banks and credit card companies, they charge fees that cut in to your profit margins. Crypto-currencies typically necessitate no third-party involvement, since users can store their coins directly in their crypto wallet. A crypto wallet is a storage device for the code that makes up individual units of crypto-currency. There are online wallets that operate on the cloud, mobile wallets that work via phone, and even hardware wallets like USB drives for those nostalgic for the days you could feel your money. The transaction fees for accepting crypto, which is delivered directly from the user’s wallet to yours, are much lower than those for credit cards, and eliminating the third party also reduces your vulnerability to hackers.
2. Eliminate Charge-backs
Charge-backs are one of the common ways that unscrupulous consumers steal from online stores. Essentially, they will make a purchase, receive the merchandise or service that they paid for, then dispute the charge with their credit card company or bank. Not only do charge-backs cut in to your profits by allowing some consumers to get free stuff, they also incur fees on your end, that are very difficult to dispute. The companies are on the consumer’s side by default. You can eliminate this common type of fraud by switching to crypto currency! There are no charge-backs, so customers won’t be able to renege on their end of the bargain.
3. More Secure Transactions
The blockchain technology that Bitcoin and other crypto currencies are built upon was designed with security in mind. It arose in response to the easily observable problems with central banking and traditional financial systems, which are centralized, vulnerable, and often easily exploited by bad actors. Blockchain uses a shared ledger across every computer and device that has the software involved, so changing one copy of the record will have no effect, making many classic types of fraud impossible. And the ledger’s strong encryption makes it very difficult for hackers to break in, whether to steal info or falsify records.
4. Simplifying International Transactions
Another inefficiency that crypto currency remedies: international transactions, which often require intermediaries and cross-border transaction fees. These are also some of the most common targets for fraud. International crypto transfers are much cheaper in terms of transactional fees, and with the security of the encrypted blockchain, you can be confident that foreign nationals won’t exploit your information. Plus, since the value is the same in every country, issues with exchange rate are eliminated, simplifying the process even further and removing additional opportunities for mistakes and subterfuge.
Crypto currencies are a hotly debated topic, with many in the financial old guard warning that their value is vastly over inflated, while people on the cutting edge of the crypto wave argue that they represent the future of all finance. While they argue, you can quietly improve the security of your site and attract a new clientele by adding crypto currencies to your checkout.