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BitPay Credit Card Processing 2023: Reviews & Complaints
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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 Banxa, Method Financial, 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.
Before we dive in, here’s a short summary of what we’ll cover:
- BitPay’s various payment processing services.
- BitPay has received a number of complaints, but most of them are from individual users of their app and not businesses. The complaints from businesses using its processing services mention hefty fees and poor customer service.
- BitPay’s basic transaction fee is 1%, which is very good for the industry. However, businesses using BitPay to process large numbers of transactions may see other fees attached.
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 an application that allows users to buy, store, swap, and spend cryptocurrency. The app includes a feature to convert Bitcoin into dollars and provides a BitPay crypto debit card, which offers cashback on purchases. This service is designed for easy management of cryptocurrencies and facilitates spending them like traditional money.
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.
BitPay enables businesses to accept cryptocurrency as payment for online transactions. This service allows businesses to expand their payment options to include various cryptocurrencies, catering to customers who prefer using digital currencies.
Email Billing and Crypto Payouts
The platform offers a service for businesses to send billing invoices via email, which can be paid in cryptocurrency. Additionally, BitPay provides a solution for businesses to execute crypto payouts, facilitating a modern approach to disbursing payments, whether to employees, contractors, or affiliates.
For brick-and-mortar businesses, BitPay supports in-store cryptocurrency payments. This service integrates with the business’s existing point-of-sale systems, allowing customers to pay with cryptocurrencies in a physical retail environment.
Crypto Donations and NFTs
BitPay also caters to non-profits by enabling them to accept donations in cryptocurrency. Furthermore, the platform supports transactions related to Non-Fungible Tokens (NFTs), providing businesses with an entry point into the burgeoning NFT market.
Secure Crypto Storage and Transactions
The platform emphasizes security in cryptocurrency management, offering a non-custodial crypto app for secure fund storage. Users can manage multiple wallets and have instant access to their assets. The app also enables users to pay with crypto and buy gift cards directly from their wallet, highlighting the convenience of using cryptocurrencies for everyday transactions.
BitPay Bill Pay
BitPay, a prominent cryptocurrency payment service provider, has introduced a Bill Pay service that allows users to pay their bills using cryptocurrencies. BitPay’s Bill Pay service enables users to pay a variety of bills, including credit card bills, mortgages, car payments, and personal loans. This service is designed to offer a high level of convenience for cryptocurrency users. The service supports payments to over 5,000 service providers, indicating a broad network that accommodates a wide range of payment needs.
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 Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||30+|
|Live Customer Support||No|
|Most Common Complaint||Poor Service|
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 clients but may extend live support to very large companies, so users 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 Online Ratings
Here's How They Rate Online
Over 30 Complaints
The Better Business Bureau currently gives BitPay an “A” rating and is not showing accreditation for the company. There have been 33 complaints filed against BitPay in the last 36 months. Only 11 of these complaints were resolved to the satisfaction of the complainant.
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, Rates & Costs
A Closer Look at The Contract
|Monthly & Annual Fees||No|
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 businesses 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 Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Uses Independent Resellers||No|
|Discloses All Important Terms||Yes|
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.
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