An online diamond retailer, Diamonds4Crypto, sells diamonds in exchange for cryptocurrency payment. Diamonds4Crypto boasts a curated collection of premiere diamonds sourced from the leading mining companies. All diamonds are cut and polished by manufacturers accredited by the Responsible Jewelry Council for their ethical, environmental, and sustainable methods.
The team at Diamonds4Crypto identified inefficiencies in the available payment processing options for their product. The following inefficiencies can create short term but also potential long term issues for their business.
Card processing is an option available to Diamonds4Crypto but because of their product category, labeled as high-risk, the processing fees available are no less than 4% of the total purchase price.
In addition, once a diamond has been shipped and received by the customer a chargeback can still occur resulting in the loss of income. At that point, Diamonds4Crypto must work with the customer to return the loose diamond, verify the diamond, and incur a chargeback fee. This is the best case scenario if the customer returns the diamond. In the event this is a fraudulent attempt the customer could walk away with the loose diamond and the chargeback can still occur if the card holder’s card was deemed stolen.
To solve these issues, we worked to integrate a crypto-first solution that allowed customers to buy diamonds, at highly competitive prices, and direct from the source with their digital assets such as Bitcoin and Ethereum.
Integration of a reliable and affordable crypto processor was the first step. Using CoinPayments’ shopping cart solution we were able to quickly integrate a custom solution for Diamonds4Crypto that allowed us to accept the digital assets of their choice. Sequoir’s business solution has a full-featured CoinPayments integration.
The next piece that Diamonds4Crypto required was the settlement of the digital assets into fiat to pay for the diamonds with the manufacturer. The team at Diamonds4Crypto needed to pay for the diamond but also maintain a crypto treasury of the digital asset revenue. With the Sequoir API integrated into their solution the team is able to split the digital assets automatically to settle out the amount needed to pay for the diamond and move the remaining digital assets into their treasury.
First and foremost, Diamonds4Crypto has been able to reduce their “high-risk” processing fees from a minimum of 4% (card) with potential for chargeback to at most 2.5% (crypto) with Sequoir’s automated split and settle capabilities.
Diamonds4Crypto can be reassured that their diamond orders will not be subject to fraudulent chargebacks or high fees. Their crypto payment offering appeals to a demographic of “diamond hands” that relate to the value they exchange.
If you are interested in Sequoir’s settlement, trade, and blockchain API solutions use the form below and someone from our team will reach out.