Cryptocurrency Acceptance for Merchants
Founded in 2012, Coinbase (coinbase.com) is a virtual currency processor that helps users make transactions with digital currencies like bitcoin, litecoin, and ethereum. Coinbase’s platform is available to developers, consumers, and business owners, but this review will primarily focus on how Coinbase helps merchants accept cryptocurrency payments from customers.
No More Fiat Payouts
Like its competitor Bitpay, Coinbase previously enabled businesses to accept an online bitcoin payment from a customer and then receive that payment as a deposit to the business’s bank account in fiat currency. However, it appears to no longer offer this feature, which means that merchants must accept payments in their chosen cryptocurrency and then exchange that currency themselves. This leaves merchants vulnerable to fluctuations in market pricing for their given cryptocurrency.
Favored by High Risk Merchant Types
Bitcoin (like other virtual currencies) is an appealing payment method for many high risk merchants because of its reputation as “digital cash,” meaning that it is not regulated by bank policies and that all sales are final. However, Coinbase monitors accounts for illegal and high risk activity, and the company will deactivate accounts that violate its terms of service. For this reason, Coinbase should not be relied upon as a payment processor for fringe products such as e-cigarettes, CBD oil, medical marijuana, gambling, firearms, adult products, or nutraceuticals.
Coinbase Location and Ownership
Coinbase is not partnered with an acquiring bank and is headquartered at 548 Market St, San Francisco, California 94104. Brian Armstrong is the CEO of Coinbase.
Coinbase Review Table of Contents
- Costs & Contract: Coinbase offers month-to-month service and does not charge any early termination fees.
- Complaints & Service: Coinbase has received more than 30 public complaints.
- BBB Rating: Coinbase has an “F” rating with the Better Business Bureau and has received 1,269 complaints in the past three years.
- Sales & Marketing: Coinbase does not appear to hire independent sales representatives and has not received any complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With Coinbase