Crypto Slashes Payment Costs for Merchants—Here’s How

Forget Visa’s 3% vig—crypto transactions are quietly gutting payment processing fees. Neil Bergquist breaks down the math: no chargebacks, no middlemen, just peer-to-peer value transfer that leaves traditional finance scrambling.

Why it matters: When a coffee shop pays 30¢ instead of $1.50 per latte transaction, those savings get baked into your morning brew. Unless, of course, the owner just pockets the difference—some habits die hard.

The kicker? This isn’t some future promise. Bitcoin and stablecoins already settle faster than your Amex statement cycles. The only thing getting disrupted faster than payment rails? Bankers’ long lunches.

The Traditional Payment Cost Structure

Credit card processing fees represent a substantial overhead for merchants, typically ranging from 1.5% to 3.5% per transaction. These fees, stemming from the layered structure of traditional payment networks, include interchange fees, assessment fees, and payment processor markups.

The current electronic payment infrastructure, built decades ago, wasn’t designed for digital commerce. “The reason why the merchant has to pay so much to accept a debitor credit card is because of fraud and chargebacks, since people can steal card numbers,” Bergquist explained. “They’re easy to steal and easy to spoof online.”

This legacy system’s inefficiencies become particularly apparent in an increasingly digital marketplace, where merchants face growing pressure to optimize payment processing costs while maintaining security and reliability.

Cryptocurrency’s Cost Advantage

The fundamental architecture of cryptocurrency transactions offers inherent cost benefits. “Crypto has a lot of benefits to be used for payments because there’s no chargeback risk, there’s no Visa or Mastercard processing fees. It’s faster and cheaper as a payment rail, especially because it’s digitally native,” Bergquist noted.

Digital assets operate on blockchain technology, which eliminates many traditional intermediaries and their associated fees. The decentralized nature of these transactions means that once confirmed, they can’t be reversed through chargebacks, significantly reducing risk-related costs for merchants.

This reduction in processing fees enables merchants to potentially offer incentives for cryptocurrency payments. “We have customers who use crypto as payment for a merchant who offers incentives to pay with bitcoin because it cuts out credit card companies,” Bergquist observed. “The merchant’s not having to pay 2% to 3% to Visa or Mastercard. A merchant can accept crypto and they’re charged 1% or less because there’s no chargeback risk.”

Security and Trust Considerations

Blockchain technology provides enhanced security features that protect both merchants and customers. Unlike credit card numbers that can be stolen and reused, cryptocurrency transactions require unique digital signatures for each payment.

The Immutable nature of blockchain transactions creates a permanent, transparent record that can help reduce disputes and fraud. This technological foundation addresses many of the security concerns that drive up traditional payment processing costs.

These security features have helped Coinme build trust with major retail partners, enabling the company to expand its services to locations across the United States. The company’s growth demonstrates the increasing confidence in cryptocurrency payment systems among established businesses.

Implementation Strategies

For merchants considering cryptocurrency acceptance, Coinme’s experience offers valuable implementation insights. The company’s crypto-as-a-service platform provides businesses with the necessary infrastructure to integrate digital asset payments without building complex systems from scratch.

Successful implementation often begins with pilot programs that allow merchants to test cryptocurrency payments alongside traditional methods. This enables businesses to evaluate real-world performance and adjust their systems based on actual transaction data.

Technical integration can be streamlined through partnerships with established providers. Coinme’s collaborations with Coinstar and MoneyGram demonstrate how businesses can leverage existing infrastructure to facilitate cryptocurrency transactions.

Cross-Border Transaction Benefits

International payments represent another area where cryptocurrency transactions can significantly reduce costs. Traditional cross-border payments often involve multiple intermediaries and higher fees, particularly affecting businesses operating in various markets.

The borderless nature of cryptocurrency eliminates many of these additional expenses. “Crypto is built on blockchains. Blockchains are digitally native. It doesn’t matter which country you’re in, you’re able to process and settle transactions as long as you have an internet or cellular connection,” Bergquist explained. “And that’s the beauty of an open financial system.”

This efficiency becomes particularly relevant for businesses handling international remittances or operating in multiple jurisdictions, where traditional payment processing fees can substantially impact profit margins.

Future Payment Trends

The fluid nature of payment systems continues to favor more efficient, digital-native solutions. Neil Bergquist anticipates a trend similar to existing cash discount programs: “You probably see the signs that say ‘pay in cash and get a discount,’” he noted. “We will see something very similar around digital currency and get a discount.”

This shift reflects broader changes in how businesses and consumers think about money and payments. As digital transactions become increasingly prevalent, the cost advantages of cryptocurrency payments may become more significant for merchants seeking to optimize their payment processing expenses.

Businesses exploring cryptocurrency payments today position themselves to benefit from these emerging trends while potentially reducing their transaction costs. Coinme’s decade of experience facilitating digital asset transactions demonstrates how proper implementation can create tangible benefits for merchants in an increasingly digital economy.