Verotel, a payment processing site, now accepts Bitcoin. Verotel is a payment processing platform that accepts most major credit cards and is very popular, especially for subscription payments on adult websites. The company released a blog post today announcing their acceptance of Bitcoin:
Membership websites can now accept Bitcoin payments. If you wish to offer your customers to pay by Bitcoin you need to create new membership options with payment method “Bitcoin” in the Control Center. The order page will then offer Bitcoin as a payment method with the membership options you have created.
[dropcap size=small]V[/dropcap]erotel charges its merchants 1% and at this time can not process Bitcoin refunds. They originally released the functionality in closed beta back in January.
Verotel will be using BitPay for the transactions, a very popular payment processor that focusses on Bitcoin. BitPay is a quickly expanding company. Verotel’s over 50,000 supported businesses will have the option to accept Bitcoin. That’s fifty thousand more businesses that now have the opportunity to accept Bitcoin. Due to the fact that many of the merchants that use Verotel’s services are in the high chargeback porn industry, many merchants are likely signing up right now.
This is a huge step forward for digital currencies. Now that many more things can be bought with Bitcoin, we’ll likely see an increased flow of trade, which many consider to be the next step for Bitcoin. It’ll be interesting to see how this turns out — will other payment processing companies follow along? Will Verotel run into any problems in their acceptance of Bitcoin?
Verotel is one of the first payment processors to start accepting Bitcoin through another payment processor; in this case, Bitpay. Earlier in 2014, Reuters reported that Verotel would first be releasing its Bitcoin functionality to a handful of select merchants before releasing the functionality to all 50,000 merchants. Verotel also stated that they would be converting their 100% of received bitcoins to their merchant’s preferred Fiat currency once a week, as Bitcoin’s price is extremely subject to change. The bitcoins will be converted immediately after payment. Verotel’s transactions are regulated by the Dutch Central Bank. The Netherlands has been incredibly friendly to Bitcoiners. The world’s first “Bitcoin Boulevard” was opened in The Hague with a Bitcoin ATM. A Dutch energy supplier, DAS, also recently announced its decision to accept Bitcoin.
We’ll likely see more and more payment processing companies begin to accept Bitcoin and other digital currencies. Hopefully, Verotel will release statistics regarding how many of their merchants are actually using this new functionality once it has been around for some time. Bitpay is leading the charge in signing up high profile internet porn providers to accept Bitcoin. Verotel could theoretically handle Bitcoin payment processing at the Bitcoin exchanges the same way Bitpay; however, they’ve chosen to go with Bitpay’s subscription model in the hopes of still making money per Bitcoin transaction. That’s right, due to the superiority of Bitcoin as a medium of exchange, Verotel can make money even even though the fee to merchants is 1% compared to the CC average of ~3%. It’s doubtful that we’ll have to wait long for other companies to tag along.
Last modified: April 30, 2014 08:50 UTC