One of the main concerns online merchants have with offering cryptocurrencies as a payment method is the volatility of its value. Merchants that offer a product or service at a specific price expect the funds provided to be worth that price point. But the value of bitcoin and other digital currencies has risen and fallen so sharply in recent years that they couldn’t always count on that. One company, however, is providing a solution that echoes the chargeback guarantees that many antifraud technology providers began offering several years ago.
San Francisco-based crypto payment provider RocketFuel says its “price settlement guarantee” is the first in the industry and should dismantle a major roadblock preventing more merchant adoption of cryptocurrency as a payment method.
The company says as soon as the buyer clicks to complete a transaction using bitcoin or other digital currency, RocketFuel will lock in the price at the current exchange rate and settle the transaction at that rate, regardless of how the market has fluctuated in the interim.
“Reconciling crypto deposits from online orders has always been a time-consuming exercise,” Randy Alleyne, CEO of Sky Tours, a discount travel fare provider, said in an announcement from RocketFuel. “The same $100 flight ticket can show up in our system as $98.53 or $99.01, which leads to confusion and ultimately losses in revenue. Providing online merchants with an automatic price settlement guarantee is definitely a step in the right direction.”