Discover how BitPay – crypto payment processor works, including fees, supported cryptocurrencies, KYC requirements, and merchant terms. Learn about invoice payments, refunds, and the BitPay Card.
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What is BitPay?
BitPay is a global cryptocurrency payment processor based in Atlanta, Georgia, founded in 2011 by Tony Gallippi and Stephen Pair. It enables merchants to accept cryptocurrency payments, converting them into fiat or crypto for payouts. For consumers, serrvice offers a crypto wallet and a prepaid card for spending digital assets.
đź’ˇ Regulation: BitPay is licensed by the New York State Department of Financial Services (NYDFS) for virtual currency operations, ensuring compliance with financial regulations.
Terms of Use
BitPay has separate terms for merchants (businesses accepting crypto payments) and shoppers (customers paying with crypto). Here’s a breakdown of the key terms from bitpay.com/terms:
For Merchants
Payment Acceptance:
- Merchants generate invoices through BitPay, with the amount displayed in local currency (USD, EUR, etc.) or crypto.
- BitPay locks in the exchange rate for 15 minutes after invoice creation.
- Merchants bear crypto volatility risk for payouts.
Payouts & Fees:
- 1% processing fee per transaction (may be reduced for high-volume merchants).
- Payouts available in fiat (USD, EUR, GBP, AUD, etc.) or cryptocurrencies (BTC, BCH, ETH, USDC, etc.). Network (miner) fees are paid by the buyer.
- Merchants can pass the 1% service fee to customers
Rates are automatically adjusted based on cumulative monthly volume.
| Monthly Transaction Amount | Transaction Fee |
| < $500,000 USD | 2% + 25¢* |
| $500,000 – $999,999 USD | 1.5% + 25¢* |
| ≥ $1,000,000 USD | 1% + 25¢* |
Refunds:
- Merchants set their own refund policy (e.g., store credit, no refunds).
- Refunds are processed in the same cryptocurrency used for payment, converted at the current exchange rate (if the invoice was in fiat).
- If a merchant lacks funds for a refund, Service may require a bank deposit.
Service Restrictions:
- Service can suspend or terminate accounts if there are excessive complaints, suspected fraud, or illegal activities.
For Shoppers (Customers Paying with Crypto)
Invoice Payment:
- Customers pay by scanning a QR code or sending funds from a wallet.
- Payments must be made in supported cryptocurrencies—sending an unsupported token may result in permanent loss of funds.
- 15-minute payment window due to volatility.
Refunds
- Refunds depend on the merchant’s policy. If applicable,
- BitPay sends a refund link via email or SMS.
Fees:
- Miner fees are paid by the customer.
- Some merchants pass service’s 1% fee to customers.
KYC (Know Your Customer) Requirements:
- KYC is required for transactions above a certain amount (e.g., 1,000 EUR in the EU).
- Large refunds or BitPay Card usage also require identity verification.
Supported Cryptocurrencies
Service supports a wide range of cryptocurrencies for invoice payments and merchant payouts. The list is updated regularly on support.bitpay.com and their official blog.
Cryptos Accepted for Invoice Payments:
- Bitcoin (BTC) – On-chain & Lightning Network
- Bitcoin Cash (BCH)
- Ethereum (ETH) – Includes ERC-20 stablecoins (USDC, DAI, GUSD)
- Litecoin (LTC)
- Dogecoin (DOGE)
- Shiba Inu (SHIB)
- Polygon (MATIC)
- ApeCoin (APE)
- Ripple (XRP) (in supported regions)
- 100+ other tokens via Arbitrum, Optimism, and Base networks
If you send an unsupported crypto, you won’t be able to recover your funds.
Cryptos Available for Merchant Payouts:
- Fiat currencies (USD, EUR, GBP, AUD, etc.) via bank transfer in 9 countries
- Cryptos: BTC, BCH, ETH, LTC, DOGE, USDC, GUSD, PAX, and a few other stablecoins
- Merchants can receive up to 5 different cryptocurrencies simultaneously
Is Worth It?
Ultimately, BitPay offers convenience, while BTCPay offers financial sovereignty. Businesses looking for an easy-to-use service with compliance and customer support may prefer BitPay, while those who want complete independence and zero fees will likely choose BTCPay.
KYC (Know Your Customer) & Compliance
BitPay enforces KYC (Know Your Customer) policies depending on the region, transaction type, and amount. In the EU, KYC verification through ID has been mandatory since May 2023 for transactions exceeding €1,000. In the US and other regions, verification is required for transactions above a set threshold, such as $3,000 annually for BitPay Card usage or large refunds.
Additionally, KYC is mandatory for users registering a BitPay Wallet or ordering a BitPay Prepaid Mastercard. Refunds may also trigger identity verification—if a refund request exceeds a certain amount, Service may require users to complete KYC before processing the return.
BitPay card
A prepaid Mastercard (not credit) linked to your BitPay Wallet, converting crypto (BTC, ETH, BCH, XRP, stablecoins, etc.) to USD for spending where Mastercard is accepted.
To get the card, you need the BitPay mobile app, where you apply after verifying your identity (you must be 18+ and provide ID and residency proof). There’s a $10 issuance fee, but no monthly fees. Spending is fee-free at the point of sale (no conversion fees), though there’s a 3% fee for currency conversion outside the U.S. and ATM withdrawals cost $2.50 in the U.S. or $3 internationally. The daily spending and load limit is $10,000.
Fees:
- Issuance: $10 (one-time).
- Monthly fee: None.
- Spending: No fees at point of sale (domestic); 3% foreign transaction fee.
- ATM withdrawal: $2.50 (U.S.), $3 (international).
Conditions:
- Load funds from BitPay Wallet using supported cryptocurrencies.
- Supports contactless payments and EMV chip security.
- Daily spending/load limit: $10,000.
- U.S.-only availability (as of launch in June 2020).
- Requires BitPay app and wallet to manage.
