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BitPay is a virtual currency processor that specializes in enabling merchant accounts to accept Bitcoin and other cryptocurrency payments from customers. The company also provides customers with crypto wallets and cards. Founded in 2011 and headquartered in Atlanta, Georgia, the company has grown rapidly in the past few years. At the beginning of 2013, BitPay secured $510,000 in funding from various investors. By the end of 2013, the company received the backing of Horizon Ventures, an investment firm operated by China’s richest man. As a major crypto company, Bitpay partners with a large number of other financial companies, including ZenLedger, BlueSnap, MoonPay, Xeni, Gr4vy, BigCommerce, and Polygon Network.
2014 Phishing Scam
In late 2014, BitPay lost more than $1.8 million in Bitcoin when its chief financial officer fell victim to a phishing scam. These losses do not appear to have been a breach of BitPay’s systems or a mass ripoff of BitPay users, but instead seem to represent an isolated incident for which the company has paid a steep price.
BitPay Payment Processing
One important detail about BitPay is that clients can choose to be paid in real currency rather than in Bitcoin or other cryptocoins. If the client chooses this setting, BitPay will accept Bitcoin or other cryptocoins from online customers and then convert the transaction into standard currency at a locked-in exchange rate. This means that as a business using BitPay, you can accept cryptocoins from customers and still receive state-backed currency, not crypto, in your bank account. The service supports payout in at least 8 currencies and direct bank deposits in at least 38 countries, including two-day deposits via ACH in the United States. BitPay can be seamlessly integrated with Shopify and also offers plugins and POS integrations for online and retail merchants. The company has also recently launched a mobile Bitcoin wallet and a reloadable Bitcoin Visa card for consumers.
BitPay offers integration with various point-of-sale (POS) systems, enabling businesses to accept cryptocurrency payments at physical locations. This service helps businesses cater to the growing number of customers who prefer to transact using digital currencies, while also streamlining the payment process.
The company provides e-commerce integration for online businesses, making it easy to accept cryptocurrency payments on their websites. BitPay supports popular e-commerce platforms and shopping carts, simplifying the process of accepting digital currencies and expanding payment options for online customers.
Mobile App and Wallet
BitPay offers a mobile app and wallet for both iOS and Android devices, allowing users to store and manage their cryptocurrencies securely. The app also enables businesses to accept payments on-the-go, providing an additional layer of convenience for merchants and customers alike.
One of the key features of BitPay is its payment settlement service. The company can settle payments in various local currencies, cryptocurrencies, or a combination of both, allowing businesses to choose the preferred settlement method based on their needs and risk tolerance.
Security and Compliance
BitPay emphasizes security and regulatory compliance in its payment processing services. The company adheres to industry standards and employs advanced security measures to protect sensitive data and minimize fraud risks associated with cryptocurrency transactions.
Mobile Wallet Hacking
In November 2018, BitPay warned its users about an infected code created to steal private wallet keys from people who use the Copay (its open-source wallet) app. A hacker was able to create a backdoor into the service by setting up malware in an open-source library that Copay was reliant on. Those using Android and iOS versions 5.0.2 through to 5.1.0 of its Copay app were most at risk and are advised to avoid opening the app again, to update their affected wallets, and to then transfer funds from compromised wallets to version 5.2.0 wallets. The company has stated that BitPay wallets were not affected by the malicious code.
Location & Ownership
BitPay’s headquarters can be found at 8000 Avalon Blvd Ste 300 Alpharetta, GA 30009-2467. Stephen Pair is listed as the co-founder and CEO of BitPay, while Jim Lester is the CFO.
Table of Contents
- Costs & Contract: Charges 1% on all standard risk transactions but may…
- Complaints & Service: Complaints number more than 30 on…
- BBB Rating: Has an “A+” rating with the Better Business Bureau and has received…
- Sales & Marketing: Does not appear to hire independent sales representatives and has not…
BitPay Reviews and Complaints
Here's What Their Clients Say
Total Online Complaints
Live Customer Support
Most Common Complaint
Moderate Complaint Total
There are approximately 30 negative BitPay reviews to be found online, some of which accuse the company of being a ripoff or a scam. Positively rated aspects of the service include its sleek interface and easy configuration, while its primary drawbacks appear to be fund-holds and its complicated payment and refund procedures. Over time, the company appears to have become more restrictive with respect to the types of businesses it is able to serve. BitPay comes under fire from some corners of the cryptocurrency community because it has married Bitcoin payments to fiat currency to serve standard markets, which necessarily limits the types of transactions it can facilitate. We encourage business owners to check out our list of the providers of the best merchant services. If you have your own BitPay review to make, please do so in the comment section below.
BitPay Lawsuits and Fines
In February 2021, BitPay was ordered to pay $507,375 to settle a civil liability issue from OFAC due to processing payments from countries that are not allowed by US law, including North Korea, Sudan, Syria, Ukraine, Cuba, and Iran. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
BitPay was ordered to pay a further $1 million to New York’s Financial Services Department over alleged non-compliance with the state’s cybersecurity and anti-money laundering regulations.
BitPay Customer Support Options
BitPay offers email support to most merchants but may extend live support to very large companies, so merchants should be sure to evaluate how important it is to have live support for their Bitcoin transactions. One of the most common BitPay complaints is poor, often unhelpful customer service, so it appears that BitPay’s support department leaves much to be desired, especially when compared to top payment processors for customer service.
BitPay BBB Rating and Report
Our Better Business Bureau Profile Assessment
Nearly 30 Complaints
The Better Business Bureau currently gives BitPay an “A+” rating and is not showing accreditation for the company. There have been 28 complaints filed against BitPay in the last 36 months.
What Merchants Say
BitPay has also received 5 informal reviews to its BBB profile. The most recent review describes potentially missing money and a lack of customer service:
I created a account with bitpay and secured my 12 word recovery phrase. I made a bitcoin deposit and tried to send it to another wallet of mine and was denied because apparently I made a encrypted passcode for my transactions (which I did not). Their support and website keeps telling me to follow their steps for a account recovery to by-pass the encrypted passcode but when I import my 12 word phrase to import my wallet a balance of **** is reflecting. Not only a zero dollar balance but the wallet address is new. The website says to delete the wallet once old wallet is imported but I don’t want to take the risk of permanently deleting my wallet holding my funds. It has been days since their customer service has reached back out to me after giving such general responses as answers.
This client would be better served by one of our top-rated processors.
An “F” Overall
BitPay has also not received any informal reviews, although it is worth noting that these reviews are not subject to verification by the BBB. After weighing BitPay’s moderate overall complaint total against its increase in complaints and poor resolution efforts toward multiple complaints, we have slightly adjusted the BBB’s rating to a “B”.
BitPay Fees and Rates
A Closer Look at the Contract
Don't Fall Into An Expensive Trap. See Who The Worst Processors Are.
Monthly & Annual Fees
A Lack of Typical Processing Fees
BitPay doesn’t require the use of Visa/MasterCard processing networks, so the service is able to completely bypass interchange rates and the usual fees associated with payment processing (including PCI compliance fees, monthly minimum fees, statement fees, setup fees, and chargeback fees). This allows BitPay to eliminate transaction fees and offer generous transaction limits to its users, which allows its rates to be competitive with some of the cheapest payment processing options.
Standard Risk Transaction Fees
For most standard-risk businesses, BitPay fees include a simple fee of 1% per transaction with no other fees. Users will receive multiple-user support, email support, automatic payment exception handling, QuickBooks IIF downloads, and basic e-commerce and billing tools. Businesses that operate in high-risk industries may be charged higher per-transaction fees that will be disclosed upon account setup. Enterprise-scale merchants may be able to obtain lower pricing or priority customer support.
No Cancellation Fee, But Potential Fund-Holds
BitPay’s legal terms contain a list of prohibited business types and information regarding the company’s reserve and termination policies. Businesses are free to cancel the service at any time without paying a termination fee, but they may experience fund-holds at BitPay’s discretion. Bitcoin transactions cannot be charged back by customers, but they can be refunded in part or in full through BitPay with the client’s consent.
BitPay Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
Audit Your Current Statement To Find Its Hidden Fees
Processing statements are intentionally complicated so that they can overcharge you. Get clarity before you switch.
Uses Independent Resellers
Discloses All Important Terms
No Independent Sales Agents
BitPay appears to primarily rely on its website and traditional advertising methods to market its service. The company does not employ independent sales agents, and there are no BitPay reviews at this time that accuse the company’s sales team of unethical conduct. This compares favorably to our list of best credit card processors.
Public Contract Disclosure
BitPay’s website also does not appear to utilize any deceptive rate promotion at this time. The company’s contract terms are fully visible on its website, so we will award it an “A” in this category. If you suspect that BitPay is charging you undisclosed fees, however, we recommend seeking a third-party statement audit to find and eliminate hidden costs.
BitPay Review Summary
Our Final Thoughts and Opinions
BitPay rates as a low-cost, reliable Bitcoin and crypto and credit card processing service according to most available criteria. The company is rapidly growing and relatively new, so businesses should anticipate changes (for better or worse) for the foreseeable future. BitPay is at the cutting edge of crypto acceptance and is one of the best options for many clients who are casually interested in exchanging virtual currency.
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