AML-Compliant Bitcoin Payments Coming to 56,000+ Merchants Globally

Payment21 and ACI Worldwide announced on Wednesday a strategic collaboration to enable payment service providers (PSPs) to offer merchants anti-money laundering (AML)-compliant bitcoin acceptance. Also read: 3 Free Bitcoin Direct Payment Processors for Webmasters 56,000+ Merchants Can Now Accept Bitcoin Headquartered in Florida, ACI Worldwide is a payment systems company which processes electronic payments for more

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Payment21 and ACI Worldwide announced on Wednesday a strategic collaboration to enable payment service providers (PSPs) to offer merchants anti-money laundering (AML)-compliant bitcoin acceptance.

Also read: 3 Free Bitcoin Direct Payment Processors for Webmasters

56,000+ Merchants Can Now Accept Bitcoin

Payment21 and ACI launch AML-Compliant Bitcoin Payments Available to 56,000+ Merchants GloballyHeadquartered in Florida, ACI Worldwide is a payment systems company which processes electronic payments for more than 5,100 organizations globally, including over 1,000 of the largest financial institutions and intermediaries, the company claims.

Thousands of global merchants rely on ACI to execute $14 trillion each day in payments and securities. With a market capitalization of over $2.5 billion, Forbes ranks ACI #45 on its list of America’s Best Small Companies.

The company announced on Wednesday that:

ACI’s network of more than 130 PSPs, serving more than 56,000 merchants, can now accept bitcoin payments.

These PSPs already offer credit and debit card checkout functionality to merchantsPayment21 and ACI launch AML-Compliant Bitcoin Payments Available to 56,000+ Merchants Globally around the world. This collaboration between ACI and Payment21 “allows PSPs and merchants to quickly and easily add bitcoin payments to their checkout pages, without additional integrations”, the announcement reads. “The solution includes inbound payments and payouts in bitcoin offering real-time settlement capabilities on a global scale, which accelerates merchant cash flow”.

ACI’s vice president, Andy McDonald, explained that this solution will enable their PSP clients to “offer AML-compliant bitcoin payments all without exposing their merchants to price volatility.”

AML-Compliant Bitcoin Transactions

Payment21 focuses on “the compliance needs of enterprise-level businesses and the legal prerequisites of their banking partners”, the company describes. Its target clientele are publicly-listed companies, licensed gaming operators, concessionary wireless network providers, authorized investment funds and their banking partners.

Moving Media Gmbh, which owns the Payment21 brand, is a registered financial intermediary with the Swiss Financial Market Supervisory Authority (FINMA). The company is based in Switzerland with an International Sales Organization (ISO) in the US.

The company’s system caters to global Know-Your-Customer (KYC) regulations in European and international jurisdictions. “This, together with no chargeback risk, makes enabling bitcoin payments an effective solution for merchants that are seeking to address traditional points of friction—including delays and costs associated with cross-border payments”, said Bernhard Kaufmann, general manager of Payment21. The company noted that:

This approach [AML-compliant] makes Bitcoin a viable solution for publicly-traded companies, licensed gaming enterprises, concessionary wireless network providers and authorized investment funds.

Do you think this AML-compliant bitcoin payments solution will increase institutional merchant adoption? Let us know in the comments section below.


Images courtesy of Shutterstock, Payment21, Constantinus Award, and ACI Worldwide


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Bitpay Adds Miner Fees To Invoices

Facing record high network transaction fees, Bitpay has announced that it will add a fee to each Bitpay invoice, beginning next week. While merchants’ fees will not be affected by this change, a purchaser paying a Bitpay invoice will see an “automatically-calculated (based on current network fee estimates) network cost” shown as a part of the total

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Facing record high network transaction fees, Bitpay has announced that it will add a fee to each Bitpay invoice, beginning next week. While merchants’ fees will not be affected by this change, a purchaser paying a Bitpay invoice will see an “automatically-calculated (based on current network fee estimates) network cost” shown as a part of the total amount to be paid, the company explained.

Also read: Bitpay Confident in Bitcoin, But Raises Its Minimum Transaction Size 

New Fees on Bitpay Invoices

Starting on March 23, a new fee will be added to each Bitpay invoice to cover the rising transaction costs of the Bitcoin network. Many businesses currently use Bitpay’s invoice service, which is a customizable API-based system capable of creating and sending Bitpay Adds Miner Fees To Invoicesmultiple invoices to customers. It is still free for payees to receive money using the invoice service. However, payers will see the miner fees added to the total amount to be paid.

“Until now Bitpay has covered the network costs for combining and sweeping UTXOs [Unspent Transaction Output Set] from Bitpay invoice payments”, the company revealed.

Recently, Bitpay CEO Stephen Pair spoke about the Bitcoin network’s mining fees rising “exponentially”. He said that the fees that Bitpay covered for customers in February crossed the $50,000 mark, prompting the company to raise the minimum invoice amount from $0.04 to $1. With this latest announcement, Bitpay stated that:

In order for us to continue processing secure, on-chain bitcoin payments without incurring losses as UTXO consolidation costs increase, as of March 23rd we will now be automatically adding this network cost to the total cost of paying a Bitpay invoice.

UTXO-Based Network Miner Fees

“The miner fees paid to combine and sweep UTXO’s from Bitpay’s receiving addresses are a major part of Bitpay’s increased network costs”, the company described. Instead of simply passing along the payments’ network miner fee, Bitpay has decided to charge fees based on the number of UTXOs which a payment is sent from.Bitpay Adds Miner Fees To Invoices

Each UTXO points to a single Bitcoin address that a wallet could choose to send bitcoins from. It is also the part of a Bitcoin transaction that tells the network how much unspent money is at each sending address.

Wallets commonly have dozens of addresses that make up part of each payment sent. A typical spend from most wallets can stack many addresses together to total up the amount being sent. A payment might only have one UTXO or it could have hundreds of these addresses. Bitpay’s invoices will be charging for each one individually. These fees are added to the invoice on top of the payer’s own miner fee which originates in the payer’s wallet, giving Bitpay no control over them. The company admitted:

We realize that for many users, this network cost may make smaller payments uneconomical.

How to Minimize Fees

For users who are concerned about additional network costs on their Bitpay payments, the company said that they “strongly recommend making Bitcoin purchases in larger increments to offset the cost across a larger payment value”. In addition, Bitpay also Bitpay Adds Miner Fees To Invoicessuggested that, to avoid double-paying the network fees, “be sure to pay the exact BTC amount requested on the Bitpay invoice”. In addition, the company noted that: “A good way to ensure that you do not overpay or underpay a Bitpay invoice is to scan the QR code or pay with a payment-protocol compatible wallet like the Bitpay wallet app”.

Bitpay concluded that “This network cost will not have a significant effect on the majority of payments made through Bitpay”. While purchasers will see the added fee, “our merchants’ fees and pricing will not be affected by this change”, the company reiterated.

What do you think of Bitpay’s move to add miner fees to their invoices? Let us know in the comments section below.


Images courtesy of Shutterstock and Bitpay


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