Coinsnap FAQ
Intro
Coinsnap makes it easy for merchants to accept Bitcoin and Lightning payments online or at the point of sale. But how do you get started, which wallet do you need, how do payments reach you, what does Coinsnap cost, and can you receive your Bitcoin sales directly in your bank account?
In this Coinsnap Bitcoin Payment FAQ, we answer the most frequently asked questions about using Coinsnap — from registration, wallets and payment processing to fees, shop integrations, fiat payouts, security and support.
Do you have any questions about using Coinsnap? Here we answer the most frequently asked questions.
How Can I Register With Coinsnap?
To create a Coinsnap account, all you need is a valid email address. Enter your email address on the Coinsnap sign-in page and click Send code. Coinsnap will send you a one-time code by email. Enter this code to sign in. If you don’t have a Coinsnap account yet, one will be created automatically.
For detailed instructions, see our step-by-step guide on How to Open a Coinsnap Account.
Which Lightning Wallet Should I Use?
If you already have a Lightning wallet with your own Lightning address, you can use it to receive your Coinsnap payments directly.
If you don’t have a suitable Lightning wallet yet, we recommend using the Coinsnap POS Wallet. It is integrated with your Coinsnap account and provides everything you need to receive and manage your Bitcoin and Lightning payments.
For merchants, the Coinsnap POS Wallet is an especially powerful solution because it combines a Bitcoin and Lightning wallet with extensive business features, including point-of-sale functionality, terminals, product management, transaction monitoring, and tools for accounting and reporting.
What Is a Lightning Address?
A Lightning address looks like an email address, but is intended for sending and receiving Lightning payments.
To receive Lightning payments, you need a Lightning address, which is provided by some Lightning wallets.
You can find an overview of Lightning wallets that provide you with a Lightning address under Lightning wallets.
Which Cryptocurrencies Can My Customers Pay With?
Coinsnap is a Bitcoin-only service provider. Your customers can pay you with Bitcoin via the blockchain (on-chain) and via the Lightning Network (Lightning).
Can I Accept Lightning Payments Only?
You already have a solution for Bitcoin payments and want to use Coinsnap for Lightning payments? Integrate Coinsnap into your online store alongside your existing Bitcoin payment method.
In the list of payment methods available to the customer, you designate the Coinsnap function as a Lightning payment and add the Lightning logo.
If the customer wants to pay with Bitcoin, they use the Bitcoin-only payment provider.
If the customer wants to pay with Lightning, they can choose Lightning payments via Coinsnap.
If your customer accidentally selects Lightning and still pays with a Bitcoin wallet, you will not lose any revenue.
This Bitcoin on-chain payment is also processed and forwarded to your Lightning Wallet.
You don’t lose any sales. Quite the opposite. You offer customers who want to pay with Lightning a way to pay with you. See also Accepting Lightning payments
What Kind of Fees are Charged?
Coinsnap charges a fee of 1%.
When you sign up, you receive a €5 welcome bonus. If you use a bonus code from one of our partners, you receive an additional €5 in starting credit, giving you a total of €10 in free Coinsnap credit.
The 1% transaction fee is deducted from this Coinsnap credit, because Coinsnap never touches the Bitcoin your customers send you. Your customers’ payments go directly to your wallet, while Coinsnap’s fees are charged separately against your prepaid Coinsnap credit.
As you make more sales and your Coinsnap credit is used up, you will eventually need to top up your credit to continue processing payments with Coinsnap.
How Do I Get Paid for My Sales?
Coinsnap is non-custodial and never holds or manages your customers’ funds. Payments are sent directly from your customer to your Bitcoin wallet or, when using an off-ramp, converted and settled to your bank account.
Your customers can pay you with Bitcoin via Lightning or on-chain, depending on the payment options you have configured. Lightning payments are sent directly to your Lightning wallet, while on-chain Bitcoin payments are sent directly to your Bitcoin wallet.
If you prefer to receive fiat money in your bank account instead of Bitcoin, you can connect an off-ramp service such as DFX or Bringin. Your customers still pay with Bitcoin, but the payment is converted into fiat and transferred to your connected bank account.
If you use the Coinsnap Wallet, everything you need to receive and manage Bitcoin and Lightning payments is already integrated. Alternatively, you can connect any other compatible Bitcoin or Lightning wallet.
Can I Also Receive Bitcoin Credits?
Lightning is Bitcoin just in a different form.
The difference is comparable to cash, which you pay with, and money in a bank account, which you save.
If you don’t need Lightning for payment but want to keep it, you should keep it on a secure Bitcoin hardware wallet.
You can exchange your Lightning balance into Bitcoin at a swap service and transfer it directly to your Bitcoin hardware wallet. We explain how to do this using Boltz Exchange as an example in the article: “Switching Lightning to Bitcoin”.
Coinsnap is currently developing a direct connection to Boltz Exchange so that the switch and direct payout to your Bitcoin address will happen automatically as soon as you receive a Lightning balance.
Can I Receive My Bitcoin Sales in My Bank Account?
Yes. If you want to accept Bitcoin and Lightning payments from your customers but prefer to receive fiat currency in your bank account, you can use one of Coinsnap’s integrated off-ramp partners.
Your customers pay with Bitcoin or Lightning, while the connected off-ramp service converts the payment into fiat currency and arranges the payout to your bank account.
This allows you to offer your customers Bitcoin payments without having to keep the received funds in Bitcoin.
Coinsnap itself never holds or converts your funds. The conversion and bank payout are handled directly by DFX or Bringin. Availability, supported currencies, fees, and account requirements depend on the selected provider and your country.
How Can I Use Coinsnap With My Online Store?
Coinsnap offers Bitcoin and Lightning payment solutions for the most popular and widely used online store systems, including WooCommerce, Shopify, Shopware, PrestaShop, Magento, and many more.
With the appropriate Coinsnap module or integration, you can add Bitcoin and Lightning payments to your existing online store quickly and easily.
You can find an overview of all shop systems supported by Coinsnap here.
There is No Suitable Plugin for My Store System
Coinsnap develops plugins and integrations for the most popular online store systems and web applications.
If your store system is not yet supported, please let us know. We are continuously evaluating additional integrations and will consider your request when prioritizing future plugin development.
Alternatively, you can ask your own developer to create a custom Coinsnap integration. Our API documentation provides everything a developer needs to connect your store or application to Coinsnap.
If your developer creates a Coinsnap plugin that could also be useful to other merchants, it may even be possible to make the plugin publicly available and generate additional revenue through our affiliate program for plugin developers.
Is There an API?
Coinsnap provides an API that allows you to create custom connections to the Coinsnap system.
Maybe other users are interested in the connection you are creating individually? Then why not develop a standard plugin and make it available to other users and earn some SATS when other users receive Bitcoin and Lightning payments with your plugin.
Learn more about the possibilities as a plugin developer.
I Know Merchants Who Want to Use Coinsnap. Can I Refer Them?
Yes! Every Coinsnap merchant receives a personal referral link and referral code, which you can find in your Coinsnap dashboard under Finances → Referral.
When a new merchant signs up through your referral link or uses your referral code during registration, they receive an additional €5 in Coinsnap credit on top of the regular €5 starting credit — giving them €10 in total starting credit.
You benefit as well: once the merchant you referred starts actively using Coinsnap and tops up their Coinsnap Customer Account with at least €5, you receive €5 in Coinsnap credit.
Simply share your referral link or code with merchants who might benefit from accepting Bitcoin payments.
What Security Measures Do You Use to Protect Our Customers’ Transactions?
When registering with Coinsnap, you as a merchant tell us which Bitcoin wallet your customers’ payments should be made to.
When a customer pays you with Bitcoin, this payment is routed directly to your Bitcoin wallet.
If your customer pays with Bitcoin, the payment is stored on the blockchain or routed via the Lightning Network and credited to your Bitcoin wallet.
The payment is secured via the Bitcoin blockchain or the Lightning Network.
Coinsnap monitors this payment on the blockchain or the Lightning Network and informs the store system as soon as the payment has been completed.
Do You Offer Fraud Prevention and KYC/AML Compliance Features?
Fraudulent payment is also technically impossible with Bitcoin payments. Bitcoin payments can only be made by people who have full control over the Bitcoin. A payment with “foreign” data, as you may know it from credit card or PayPal payments, is not possible with Bitcoin payments.
For data protection reasons, we do not request any customer data and do not store it. We only receive the order number from you, which we will provide you with after payment has been made.
KYC/AML verification is mandatory for un-hosted wallets for amounts over €1,000. Our system only allows payments up to a maximum of €1,000, as we are unable to provide KYC/AML verification for your customers.
How Do You Secure Storage of Cryptocurrencies (e.g. Cold Storage, Multi-Signature)?
We do not hold or store any of our customers’ bitcoins. Bitcoin payments are credited directly to the merchant’s own Bitcoin wallet.
Is There a Way to Automatically Convert Cryptocurrencies to EUR?
If you wish, you can convert your Bitcoin turnover into EUR and have it paid out directly to your bank account.
We work together with the Swiss Bitcoin broker DFX for this purpose.
How Quickly Are Bitcoin Payments Processed?
Lightning payments are virtually instant. Your store receives the payment confirmation within seconds, and the payment arrives in your Lightning wallet at the same time.
On-chain Bitcoin payments are detected as soon as the transaction appears on the Bitcoin network. Your store can therefore recognize the payment quickly, while final confirmation on the blockchain takes longer and depends on the Bitcoin network.
What Fees Are Charged for Transactions Converted Directly into Fiat?
If you use DFX to receive your Bitcoin sales directly in fiat to your bank account, the total cost to the merchant is 1.2%: the 1% Coinsnap transaction fee plus the 0.2% DFX bank payout fee.
DFX also applies a 1% conversion spread, which is included in the Bitcoin amount paid by the customer and is not deducted from the merchant’s payout.
Do You Offer Support for Technical or Security-Related Questions? How Can We Reach Your Support Team?
After you have opened an account with Coinsnap, you will find our support area in the backend. Here you can communicate with us by e-mail. For technical integration, we offer our support via our Telegram chat https://t.me/coinsnap_io.
Your question has not been answered?
Then post your question in our Telegram group: Coinsnap Telegram
