By Mike Willson 
Increasing numbers of businesses today are looking for alternatives to accepting only credit or debit cards onlineWhile there are other payment processors to consider, many of them are looking into accepting crypto payments, as this may be the future of buying and selling products or services online. Before starting to accept crypto payments online, though, businesses will want to consider whether they want to use a custodial or non-custodial gateway.
Custodial Versus Non-Custodial
It’s important to understand the difference between custodial and non-custodial accounts. With a custodial account, a third party processes the transaction and temporarily holds the customer’s payments before giving them to the business. With a non-custodial crypto payment gateway, the crypto is sent directly to the business’s wallet, so there’s no delay before they receive the funds from the sale. Both can be a good option for businesses, but many may prefer non-custodial accounts because of the speed and other benefits.
Complete Control
Non-custodial accounts offer complete control for the business, since they don’t have to wait for the funds to be available or worry about potential service suspensions, delays in receiving the funds, or other issues. When a sale is made, the crypto is immediately transferred to the business’s wallet, and they can cash out or use the money for something else right away. They won’t have to wait on a third party before they can use the funds.
Decreased Risk of Theft
Hacks and security breaches are a risk for custodial accounts, just like with credit cards and other payment methods. Since the funds are held by the custodian, if there is a hack, the funds could be stolen. With a non-custodial account, this is no longer a worry. Non-custodial gateways do not hold onto the funds at all, so even if there is a hack or other issue, the funds are safe in the business’s wallet. This keeps the funds under the business’s control and ensures they are safe.
Reduced Transaction Fees
Though transaction fees are already much lower than other payment methods, they can be even lower with a non-custodial account. Since there isn’t a custodian holding onto the funds or monitoring transactions, the transaction fees don’t have to cover as much and can be significantly reduced. This helps to make accepting cryptocurrencies more affordable for all businesses.
Resists Censorship and Centralization
Some areas have strict controls over payments or have foreign transaction fees that have to be paid for every international purchase. However, non-custodial accounts can get past these without the added fees or other issues. Payments can become truly borderless and be possible in any country, no matter how they restrict other payment methods. Businesses looking to expand internationally may find that non-custodial accounts are the better option because they open up the potential customer base further than other payment types.
Crypto is increasingly popular and may be a great way to make or receive payments online. If you’re ready to expand your payment options or switch to crypto for online sales, it’s important to choose the right gateway. Using a non-custodial gateway can give you benefits beyond what a custodial gateway offers, including those mentioned above. Check out a non-custodial gateway now to determine if this is the right choice for your business.