How is a payout to a bank account made?
You use the service of Coinsnap and your customers can pay with Bitcoin and Lightning? Then you get the sales of your customers in the form of Lightning credited to your own Lightning wallet.
However, you may prefer to have this Lightning credit paid out in euros to your own bank account. In this case, you can forward your Lightning balance to a Lightning broker and it will be immediately converted into Euros and paid out to your bank account.
Coinsnap itself does not offer an exchange of Bitcoin into Euros, Dollars or other currencies, but works with partners that allow the exchange and withdrawal to a bank account.
By working with different Bitcoin brokers, it is possible to withdraw in different currencies and to bank accounts in different countries and regions.
As a Coinsnap merchant, you are free to choose your Bitcoin broker.
In addition to the fees, you have to consider in which country the bank is located where you have your bank account and in which currency the withdrawal should be made.
As a rule, you have to register separately with the corresponding Bitcoin brokers and enter your personal data and bank details.
Each Lightning broker has different requirements for the documents to be submitted and information about your company.
With some providers, the account opening can also be started directly from Coinsnap.
From the Bitcoin or Lightning broker you will receive your own Lightning address, which you can deposit at Coinsnap. All incoming Bitcoin and Lightning payments from your customers will be forwarded to this Lightning address by Coinsnap.
The credit will then be made to your Lightning broker, who will convert the incoming amount into Euros or another fiat currency and pay it out to your bank account.
The payout can be made per incoming payment or cumulatively, depending on the amount.
Instead of a Lightning address, the Lightning broker can also provide credentials in another form, which you can enter into the corresponding fields of the respective provider in the Coinsnap backend.
The fiat invoice amount to be paid by the customer is calculated based on the bitcoin exchange rate provided by Lightning Brokers.
The final conversion is done at the time the payment is received by Lightning Brokers.
When paying by Bitcoin (onchain), the time of crediting depends on the confirmation on the blockchain, which can take an hour or longer.
If the end customer pays via Lightning, the Lightning broker is credited within a few seconds and is almost risk-free due to exchange rate fluctuations.
Below is a list of Bitcoin and Lightning brokers to which Coinsnap offers connectivity.
This list of Lightning broker connections is constantly being expanded. If your Lightning broker is not yet listed here, inform them about the possibility of working with Coinsnap and ask them to contact us.
DFX.Swiss
DFX is a Swiss crypto exchange and offers the possibility to buy and sell Lightning.
Coinsnap customers have the possibility to automatically exchange the incoming Lightning payments of their end customers into Euro or CHF and have them paid out to their own bank account.
Payments can be made to all countries that are members of the SEPA area.
SEPA countries include the 27 EU member states (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden), the three EEA countries Iceland, Norway and Liechtenstein, as well as Switzerland, the United Kingdom, San Marino, Vatican City, Andorra, Montenegro and Monaco.
The fee for exchanging Lightning into euros or Swiss francs is 1.49% on the turnover.
Merchants who want to have their customers’ sales paid out to a bank account must select the provider DFX in the backend under Payouts to bank account.
There, the fields account holder, IBAN bank details and currency of the bank account can be specified.
Further details are not required as long as the submitted turnover is below 1,000 CHF / 950 € per day or 100,000 CHF / 95,000 € per year. If the turnover exceeds this limit, an additional identification check according to Swiss law is required. The fee thereafter amounts to 1.99% of the turnover.
Coinfinity (planned)
Coinfinity is an Austrian Bitcoin broker that is currently testing the purchase and sale of Lightning. The purchase of Lightning credits is already possible during the test phase. The sale of Lightning, i.e. the exchange of Lightning into euros, is not yet possible.
As soon as an API interface for the sale of Lightning is available, Coinsnap will check whether technical integration into the Coinfinity system is possible.
21Bitcoin (requested)
21Bitcoin is an Austrian Bitcoin broker that is currently testing the purchase and sale of Lightning. The purchase of Lightning credits is already possible during the test phase. The sale of Lightning, i.e. the exchange of Lightning into euros, is not yet possible.
As soon as an API interface for the sale of Lightning is available, Coinsnap will check whether technical integration into the 21Bitcoin system is possible.
Pocket Bitcoin (requested)
Pocket Bitcoin is a Swiss Bitcoin broker that is currently testing the purchase and sale of Lightning. The purchase of Lightning credits is already possible during the test phase. The sale of Lightning, i.e. the exchange of Lightning into euros or CHF, is not yet possible.
As soon as an API interface for the sale of Lightning is available, Coinsnap will check whether technical integration into the PocketBitcoin system is possible.
Other Lightning Brokers
Coinsnap is interested in working with Bitcoin brokers who offer Lightning sales and bank account payouts.
Coinsnap is looking to partner with other Lightning brokers to offer payouts in other currencies and countries.
Coinsnap is a payment service provider that enables its merchants to accept Bitcoin and Lightning payments in their online store. Some merchants want to keep the Bitcoin sales, while others prefer to have the collected Bitcoin Lightning sales paid out to their bank account.
Therefore, we are looking for partners where these merchants can sell the Bitcoin Lightning sales and receive a credit in fiat to their bank account.
This means that the sales process should be automated for the merchant. The merchant should not have to go to the Lightning Broker website and manually enter the data for each sale. The data should be transferred automatically from Coinsnap.
The process could look like this:
The end customer orders something for €50 in the online store.
Coinsnap asks the Lightning Broker for the current exchange rate and receives, for example, 100,000 sats.
Coinsnap creates a Lightning Invoice.
The end customer pays 100,000 sats and Coinsnap forwards the sats to the Lightning Broker.
The Lightning Broker exchanges the 100,000 sats for €50 and transfers it to the merchant’s bank account.
The following are implementation scenarios:
Lightning Address:
One solution would be for the Coinsnap customer to open an account with the Lightning Broker and receive a Lightning Address from them. The merchant stores the Lightning Address of the Lightning Broker in the Coinsnap backend.
Coinsnap then forwards the merchant’s Lightning revenue to this Lightning address. The Lightning Broker then converts the incoming Lightning payments into Fiat and pays them out to the merchant’s bank account.
API connection:
Coinsnap already has some information about the merchant. This data can be transferred to Lightning Broker when registering a new merchant or a transaction.
1.User Registration Requirement:
The service must allow users to register.
Registration involves obtaining a signature message, signing it, and registering via an endpoint.
Optionally, users may provide additional information such as wallet and referral details.
2.KYC Verification Requirement:
KYC verification is subject to regional regulations and may be optional in some countries and mandatory in others.
The service should provide the option of KYC verification based on transaction volume thresholds.
However, in cases where KYC is required, users must undergo identity verification through the API to ensure compliance.
3.Transaction requirements:
The service should provide an API that allows users to get quotes for selling crypto.
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