Accept Bitcoin Cash (BCH) Payments
While Bitcoin Cash (BCH) may not be quite as popular as Bitcoin, its interest as an alternative payment method continues to grow throughout the world.
In this post we will outline how to accept Bitcoin Cash (BCH) as well as how it differs from traditional Bitcoin, and even highlight a few unique advantages it possesses.
As we go along, keep in mind that while Bitcoin’s price is currently above $65,000 (March 5th, 2024), Bitcoin Cash is much more affordable around a range of $415 (March 5th, 2024).
Let’s dive in.
What is Bitcoin Cash Payment?
Before we start transacting with it, we must first get a firm grasp of what this specific cryptocurrency does.
While Bitcoin was created all the way back in 2009, Bitcoin Cash (BCH) is a cryptocurrency that emerged from a fork of Bitcoin (BTC) in August of 2017 (*).
The primary reason for this fork was to address issues related to Bitcoin’s scalability, and the Bitcoin community was divided on how to solve these problems, ultimately leading to the creation of Bitcoin Cash as a new branch of the blockchain.
The size of blocks on the blockchain is the primary distinction between Bitcoin Cash and Bitcoin.
To speed up transactions and lower costs, Bitcoin Cash first expanded block sizes from 1 MB to 8 MB to accommodate more transactions per block.
Since then, the block size has been raised to 32 MB, however not every block is being used to its full potential.
Bitcoin Cash (BCH) is currently one of the top 20 cryptocurrencies in the world as it happens to be one of the few tokens that has a total market capitalization of over $8 billion as of March 2024 (*).
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How Does Bitcoin Cash Payment Work?
Similar to other cryptocurrencies, Bitcoin Cash (BCH) payments use blockchain technology to facilitate peer-to-peer transactions without the need for a central authority.
Here’s a step-by-step explanation of how Bitcoin Cash payments operate:
1. Transaction Initiation
When a sender wishes to make a payment in Bitcoin Cash, they initiate a transaction from their wallet in the same way they would for any other cryptocurrency transaction.
This simply involves entering the recipient’s wallet address and the amount of BCH to be sent.
2. Transaction Broadcasting
Once the transaction details are confirmed, the sender’s wallet broadcasts the transaction to the Bitcoin Cash network.
This means that the transaction information is sent to a network of computers (nodes) running the Bitcoin Cash software.
3. Transaction Verification
Miners on the Bitcoin Cash network pick up the transaction and include it in a block of transactions.
Before a block can be added to the blockchain, miners must solve a complex cryptographic puzzle as this process secures the network and verifies transactions.
The first miner to solve the puzzle gets to add the new block to the blockchain and is rewarded with newly minted BCH (this is known as the block reward) and the transaction fees from the transactions included in the block.
4. BCH Transaction Confirmation
Once the BCH transaction is included in a block and that block is added to the blockchain, the transaction is now considered confirmed.
However, it’s common practice to wait for additional blocks to be added after the block containing your transaction (often 1-6 confirmations) to ensure the transaction is securely recorded on the blockchain.
This process is important as it mitigates the risk of double-spending.
5. Final Receipt And Access
After the transaction has been confirmed, the recipient’s wallet will show the incoming amount of BCH.
The recipient can now spend these funds by initiating their own transactions.
Why Accept Bitcoin Cash (BCH) Payments?
Businesses can benefit from accepting Bitcoin Cash (BCH) payments in a number of ways, which makes it a desirable complement or substitute for other cryptocurrencies as well as traditional fiat money.
The following are several justifications for a business to take Bitcoin Cash, along with some advantages over alternative payment options:
Lower Transaction Fees
Compared to traditional payment methods:
Credit card companies and banks typically charge between 1.5% to 3% per transaction, and sometimes there are even additional fees for the merchant.
Bitcoin Cash payments usually have much lower fees, which can significantly reduce costs for businesses, especially those with high transaction volumes or low average ticket sizes.
Compared to other cryptocurrencies:
While Bitcoin Cash shares many similarities with Bitcoin (BTC), it generally offers lower transaction fees due to its larger block size, which allows more transactions to be processed at once.
Faster Transaction Speeds
Compared to traditional bank transfers:
International wire transfers often take several days to clear, but Bitcoin Cash transactions on the other hand, are confirmed within minutes.
Compared to some cryptocurrencies:
Bitcoin Cash has a focus on maintaining fast transaction speeds even as the network grows.
While some cryptocurrencies may experience congestion and slower confirmation times during peak periods, BCH aims to avoid these issues with its larger block size.
Accessibility And Inclusion
Global reach:
Bitcoin Cash enables businesses to accept instant payments from almost anywhere in the world without the need for currency conversion or international banking arrangements.
This opens up markets that were previously inaccessible due to financial infrastructure limitations or high transaction costs.
By accepting Bitcoin Cash, businesses can cater to customers who are unbanked or underbanked, as it only requires an internet connection and a digital wallet to participate.
Although there are unquestionable benefits, companies should also take Bitcoin Cash’s volatility into account. BCH’s value is subject to large fluctuations, which may worry companies who have narrow profit margins.
Nevertheless, by utilizing payment processors like CryptoProcessing.com that instantly exchange cryptocurrency for fiat money, this danger can be reduced.
How to Accept Bitcoin Cash (BCH) Payments?
To start accepting Bitcoin Cash, Bitcoin, Ethereum, USDT, and many other cryptocurrencies, first, simply fill out the form below on the CryptoProcessing website.
Shortly after your submission, you will receive an email inviting you to discuss your needs with a knowledgeable representative who will guide you through the platform’s features and answer your questions.
You will then receive a customised proposal from CryptoProcessing.com that aligns with your business model and transaction requirements.
From there all you have to do is provide the necessary Know Your Business (KYB) documentation to confirm the collaboration, and a dedicated account manager will be assigned to support you throughout the setup process.
Once set up, you’re ready to accept diverse cryptocurrency payments from your customers.
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