If you are in the business of accepting credit cards, then you need to have a bitcoin payment gateway. It is like having an online payment system that you have to use in order to accept all major credit cards online. With a gateway, all you have to do is set up your merchant account and let your service provider do the rest. The process will be managed by them. They will also perform all the necessary background checks needed and pass it on to the customer.
To understand how this works, you must first know about the working of a typical merchant account provider. When they are ready to get your business registered, they will ask for some information from you so that they can prepare your merchant account details. This includes information such as your name, address and credit card number. After which, they will get in touch with a bitcoin processor bitcoin payment processor.
The bitcoin processor is the one who will take care of all the transactions done by your customers. All transactions are usually done through your private key or with the help of an elliptic curve. The main point of contact between the two entities is the elliptic curve. The private key, which you carry in your hand, is what the buyer uses to sign off on the transaction with the bitcoin merchant accounts provider.
Once you have approved the transaction, the processor will pass it down to your merchant account provider. They will then create a reference number which is your private key. This is the second part of the payment processing history. Once this is done, your customers will get a reference code, which they will use in their local currency to make a payment.
Once you have approved the transaction, the customer will be redirected to the payment gateway. At this stage, there may be different types of communications that take place. This is because the reference number you gave them was just an example of a communication that could take place between the merchant account provider and the payment processing history. There may be another type of communication that takes place between the merchant account provider and the bitcoin merchant account. The reference number is just an example of a communication that could take place between the two entities.
If the reference number that was given to you was not your private key, then your payment processing history will still be processed regardless. But, your customer’s transaction can be rejected if the reference number you gave is not your private key. As such, your payment gateway must be a node. It will simply be too risky for you to operate your business without one.
If you do not want to be operated by a third party, you will have to provide security for your service. However, this should be done after you have approved the payment process. You can also opt for a multi-sig merchant account that will offer you more security. There are several providers for this service, which allows for 2FA. You can also request that your payment gateway has no record of the transaction as an unconfirmed one. This way, if your customer requests for his money again, he will get it but only after having sent his reference number first.
If you are operating your business online, you can use a merchant account to help you accept payment through bitcoins. You will just have to ask from a merchant account provider. But before doing this, you have to make sure that the provider is legal in your country and that the provider has a good reputation. Once everything is settled, you can now operate your business as usual.