How to price products when customers pay with crypto
Set the price in US dollars, then convert at checkout with a live rate. Add processor and network fees plus a buffer, and record the sale rate for taxes.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- The IRS treats crypto as property when you sell or convert it.
- Sales tax usually applies to the retail sale in dollars.
- Keep the crypto amount, exchange rate, and fees for records.
When customers pay with crypto, you still set costs and margin in dollars. Crypto is the payment method, not your unit of account.
What to know before pricing
Start with the price in US dollars. At checkout, a processor quotes a live crypto rate and shows the customer how much to send. That keeps costs, margin, and tax tied to dollars.
- Set the dollar price before you look at any crypto rate.
- Choose a processor that quotes a live rate at checkout.
- Display the crypto amount for the customer to confirm.
How do you price crypto checkout?
Your checkout price may need to cover processor fees, network fees, and a volatility buffer. You also want quick conversion to dollars. The steps follow the order of a sale.
- 1Add processor feesBuild the processor fee into your dollar price. Check the current schedule because fees can change.
- 2Cover network feesAdd an estimate for the network fee the customer pays to send coins. A low fee can delay confirmation.
- 3Add volatility bufferAdd a small buffer so a price move before conversion does not cut your margin.
- 4Turn on auto-conversionSet your account to convert each payment to dollars. A processor can turn received bitcoin into your local currency.
How do you record and report crypto sales?
The IRS treats crypto as property, so when you later sell or convert it, that is a disposition. Any gain can be taxable income. Sales tax usually applies to the retail sale and is measured in dollars. Keep records of what happened at payment.
Frequently asked questions
You can accept crypto directly to a wallet, but you then handle conversion and records yourself. A processor can turn payments into dollars and give you a sales record.
The checkout rate is only a quote until conversion. If you hold the coins and the price falls, the dollars you end up with are lower than the checkout price.
You can refund the dollar amount from the sale instead of the same number of coins. If you send crypto back, the dollar value at refund time may differ.
You can, but your costs, taxes, and records stay in dollars, so tracking margin is harder. A dollar price with checkout conversion keeps those numbers clear.
