Recently a video of a cocktail bar accepting bitcoin payment has been surfacing all over Twitter.
The payment was made using the lightning network. A user tweeted a video of the transaction taking place on Monday.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) July 19, 2021
The use of cryptocurrency for real transactions has gained great popularity in the past few years. It’s been a hassle-free, easy-to-do way of transactions since no because of minimal restrictions. Those who don’t know, foreseers see cryptocurrency as the future of currency.
Here’s how bitcoin transactions work-
What Is a Bitcoin Payment Service?
Briefly speaking, bitcoin payment services or bitcoin merchant services enable merchants and enterprises to receive Bitcoin payments from individuals to sell or supply goods and services.
It also works for the processing of conventional payment services for credit or debit cards with certain characteristics for bitcoins.
If you want to buy your Amex or Visa credit card, for example, you are visiting a Walmart shop and you are bound to pay by PIN-number. You can also make an online buy on the website of Walmart and pay by entering the details on the payment page of your website using the same credit card.
In both instances, the payment service system (in-store swipe machine or internet websites) works behind the scenes and enables your credit card to be authenticated and processed for payment. The payment service ensures that the essential payment data are recorded and transmitted, authenticated credentials, that the money from your account may be transferred to Walmart’s and that all interested stakeholders receive a confirmation.
Similarly, Bitcoin payment services work. They function as an intermediary between the payer and the recipient in order to execute Bitcoin payments, which means that the transaction is recorded on the blockchain public record.
How Does this crypto Payment Service Work?
All prominent payment systems from Bitcoin provide several means of payment for traders. They include solutions for a variety of platforms, including integration with e-commerce platforms like Shopify, PrestaShop and Magento; for payments by POS systems, such as Soft Touch and DC POS, and for direct payments from the popular accounting systems such as Host Bill and Invoice Ninja. Postal services are provided in several different ways.
Essentially, anyone subscribing to Bitcoin Trading services can start getting Bitcoin payments from people across the globe via all sorts of media.
Payment Workflow: Step by Step
The following workflow is carried out in terms of steps:
- Your consumer chooses to pay on the checkout in bitcoins (in-store, on the web, or in-app).
- The locked-in exchange rate applies to the amount when the transaction is carried out.
- The Bitcoin payment system translates the received Bitcoins to your chosen currency so that the volatility risk is eliminated.
- The money is added to your account and finally credited to your selected bank account as soon as the amount accrued passes the threshold limit.
The bitcoin payment service deciphers the received bitcoins instantaneously to the trader’s selected currency, therefore avoiding the danger of volatility. Instead of exchanging it for fiat money, you can even choose for bitcoin in your own wallet.