How Bitcoin Payment Gateways Connect to Everyday Checkout

What Is a BTC Payment Gateway?

A bitcoin payment gateway is a service that lets merchants accept BTC while still running a familiar checkout flow. It generates BTC invoices, tracks incoming payments on-chain or via Lightning, and optionally converts funds into fiat so the merchant does not need to hold bitcoin directly.

For the customer, the experience is often just scanning a QR code or clicking a wallet link. For the merchant, the gateway aims to hide the complexity of addresses, confirmations and exchange rates behind a simple “invoice paid / not paid” status.

From Invoice to Settlement – Typical BTCPay Flow

Implementations differ, but many BTC payment flows share a similar structure:

• 1. Price quote: the checkout total is converted from the store currency (e.g. USD, EUR) into BTC at a quoted exchange rate, often with a short time lock.
• 2. Invoice generation: the gateway creates a payment request – on-chain address, Lightning invoice or both – and displays it to the customer.
• 3. Payment detection: the gateway watches the relevant network(s) to detect if the required amount has arrived within the time window.
• 4. Confirmation: once the payment is considered final (instant on Lightning, or after a certain number of on-chain confirmations), the order is marked as paid.
• 5. Settlement: funds are either settled to the merchant in BTC, or converted to fiat and paid out to a bank account, depending on the merchant’s preferences.

Some providers integrate directly with point-of-sale terminals and online storefronts, letting BTC coexist with cards and local wallets as just another payment option at checkout.

Volatility, Conversion & Accounting Considerations

Bitcoin gateways have to deal with price volatility. To handle this, they usually:

• Lock a BTC price for a short window when the invoice is created.
• Apply spreads or fees on the exchange rate used for conversions.
• Offer automatic conversion to fiat for merchants who prefer not to hold BTC.

From a merchant perspective, key questions include:

• How settlement works: in BTC, in fiat, or a mix – and which bank accounts or wallets are used.
• Fees & spreads: the total cost vs. card processing for similar transactions.
• Invoice records: whether the gateway provides clear reporting for tax and accounting.
• Chargebacks & disputes: BTC payments are generally irreversible, unlike many card chargebacks.

BTC acceptance can make most sense for merchants with crypto-native customers or specific reasons to settle in bitcoin – but it still sits alongside card rails and traditional processing for most day-to-day usage.

BTC Gateways vs. Traditional Card Processing

For broader comparisons across card-based solutions, use Choose.Creditcard as a neutral starting point.

Explore Related Bitcoin & Crypto Payment Topics

Part of The CreditCard Collection

BTCPay.Creditcard is part of The CreditCard Collection – a network of focused microsites by ronarn AS. Each page explains one part of the modern payments stack and connects to neutral comparison hubs.

We do not operate BTC gateways or issue cards. This page summarises typical patterns in public documentation. It is not technical advice, legal advice or a recommendation to accept BTC.

Compare Crypto & Traditional Card Setups

Use BTCPay.Creditcard to understand merchant-side BTC payment flows, then visit the Crypto hub and main Choose.Creditcard site to compare how crypto-oriented cards and gateways sit alongside traditional card and bank options.