A Processor for Bitcoin and Cryptocurrency Payments
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.
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 merchants can choose to be paid in real currency rather than in Bitcoin or other cryptocoins. If the merchant 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 merchant 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 least8 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.
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.
BitPay 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.
BitPay Review Table of Contents
- Costs & Contract: BitPay charges 1% on all standard risk transactions but may enforce higher rates for high-risk industries.
- Complaints & Service: BitPay complaints number more than 30 on public complaints forums.
- BBB Rating: BitPay has an “F” rating with the Better Business Bureau and has received 18 complaints and 1 review in the past 3 years.
- Sales & Marketing: BitPay does not appear to hire independent sales representatives and has not received any complaints about its sales practices.