OpenNode Review: Bitcoin Payment Processor

Description

OpenNode is a bitcoin-only payment service for businesses and organizations worldwide that want to accept bitcoin payments from customers or receive bitcoin donations. In the US, it allows businesses to convert the Bitcoin they receive into USD instantly or at a later date.

It provides a suite of tools to make accepting payments and payout in bitcoin and local currencies easy. These tools include payment buttons, hosted checkouts, API integration, and e-commerce plugins. Bitcoin payments can be settled on the bitcoin blockchain or via the Lightning Network for instant and cheap transactions.

OpenNode is a web-based application that can run on any browser on any mobile device. It is compatible with any bitcoin and Lightning Network wallet. The platform supports two-factor authentication, multisig, and built-in fraud protection to secure the funds and keep transaction data safe. OpenNode also requires individuals/sole proprietors to complete a KYC (Know Your Customer) verification process before using the service. Businesses must additionally provide documentation and beneficial owner information.

How OpenNode Works

There are a few ways to get started with OpenNode and accept payments:

• Plugin integration: OpenNode has plugins and extensions for e-commerce platforms like Shopify, BigCommerce, WooCommerce, Magento, Prestashop, and OpenCart. With the OpenNode plugin, merchants can accept bitcoin and Lightning Network payments with no additional fees or setup.
• API integration: you can integrate OpenNode bitcoin payments into your website by installing OpenNode API that allows you to customize your checkout flow.
• Hosted payment pages: you need to generate an API key in your OpenNode dashboard and create a payment request, entering the invoice amount and the currency. Once the payment request is made, the service will provide you with a hosted checkout URL. Redirect your customers to this hosted checkout URL to complete the payment process. If needed, you can include discounts or set up promo codes.

OpenNode Features

OpenNode Standard is a set of services and features provided by OpenNode. OpenNode Standard typically refers to the basic features available on the platform for merchants, such as:

• Bitcoin Payment Processing: Accept Bitcoin payments via both on-chain transactions and the Lightning Network, ensuring fast and cost-effective payments.
• Payment Templates (Hosted Checkouts): Create pre-defined checkout forms, such as “Pay with Bitcoin,” “BTC payment button,” or “Donate with Bitcoin,” that can be embedded into websites. These enable businesses to get paid in Bitcoin or automatically converted local currency.
• API and Integrations: OpenNode provides a developer-friendly API, allowing businesses to integrate Bitcoin payments and a “BTC payment button” into websites, apps, and other services. They also offer plugins for major e-commerce platforms like WooCommerce and Shopify.
• Automatic Conversion: Accept Bitcoin payments and instantly convert them to your preferred local currency at the time of the transaction. The locked rates feature eliminates Bitcoin price volatility.
• Invoices (Billing): Generate custom Bitcoin payment requests by creating invoices in the form of shareable PDFs, hyperlinks, or via email.
• Bank Transfers: Easily withdraw funds by connecting your bank account. Choose between scheduled, recurring bank transfers or one-time transfers.
• Checkout and Invoicing Tools: Customize checkout pages, payment buttons, and invoicing tools that seamlessly integrate into websites or in-store systems.
• In-person Payments: Accept Bitcoin payments at physical locations. Customers can pay using mobile wallets or QR codes, and your iPhone or iPad can function as a point-of-sale (PoS) system by accessing OpenNode via a web browser.
• Global Reach: Accept Bitcoin payments from customers around the world.
• No Chargebacks: Since Bitcoin transactions are irreversible, there’s no risk of chargeback fraud.
• Split Settlement: Receive payments in both Bitcoin and fiat currency simultaneously.

OpenNode Fees

OpenNode has a transparent fee structure without imposing minimums, monthly or annual fees, or contractual obligations upon sign-up. Businesses are subjected to a per-transaction processing fee for bitcoin payouts. Industries categorized as “high risk” by traditional banking systems may face elevated fees compared to OpenNode’s standard processing fees.

Scheduled transfers via OpenNode incur no charges while instant on-chain transfers are subject to a 1% fee, whereas instant Lightning Network transfers are consistently free of charge.

For bank transfers in local currencies, OpenNode applies a 0.2% fee. However, transfers to countries outside the supported currencies are subject to a $15 USD wire transfer charge. Importantly, OpenNode does not charge any conversion fees.

OpenNode Supported Currencies

Once you supply OpenNode with your banking information, they offer on-demand and instant bank transfers and automatic conversions from Bitcoin to US dollar. The conversion is ideal for those who want to completely removes the risk of Bitcoin price volatility affecting the value of their transaction. The funds from the transaction go directly to your traditional currency wallet, not your Bitcoin wallet.

One important point to note is that while OpenNode allows businesses to instantly convert Bitcoin into local currency, this feature is only available for USD if your company’s principal place of business is in the U.S.

OpenNode Supported Countries

OpenNode supports businesses in a variety of countries. Some of the key regions where OpenNode services are available include the United States, Canada, the United Kingdom, and Australia. Additionally, OpenNode operates in various countries within the European Union, as well as Brazil, Mexico, Singapore, and the Philippines. Other supported regions include New Zealand, South Africa, and Japan. However, availability may vary based on regulatory conditions and local laws, so it’s advisable to contact their support for the most current information on supported countries.

Currently, OpenNode supports conversion to USD for US based businesses and organizations. Outside the US, you can still use their full suite of Bitcoin payment products and services.

Is OpenNode Legit and Safe?

Yes, OpenNode is a safe and legitimate Bitcoin payment processor, and it has been operating since 2017 without any major security issues. The platform offers robust security features to protect both businesses and users. A significant benefit of using Bitcoin is that transactions are irreversible, which reduces the risk of chargeback fraud. Since payments are authorized and initiated by the payer, the chance of fraudulent transactions is virtually eliminated.

OpenNode employs intelligent, up-to-date security protocols to prevent unauthorized access and protect funds from theft. It supports multisig wallets for added security, enforces standard withdrawal limits, and provides IP address whitelisting to secure accounts. These measures ensure that funds are safeguarded against potential threats.

With a transparent fee structure, no hidden charges, and a solid security record, OpenNode is a trusted solution for businesses looking to accept Bitcoin payments easily and securely.

OpenNode Features: Summary Table

Is OpenNode Good for Business to Accept Bitcoin?

Yes, OpenNode is an excellent solution for businesses looking to accept Bitcoin payments. It allows businesses to instantly convert Bitcoin to local currency at the time of a transaction, thanks to its locked rates feature, which eliminates Bitcoin price volatility. The BTC payment gateway supports both Lightning Network and Bitcoin on-chain payments, making it easy for your customers to pay using mobile wallets or QR codes.

Moreover, OpenNode is compatible with all smartphones and Bitcoin wallets. Businesses can even use their iPhone or iPad as a point-of-sale (PoS) system by accessing OpenNode through a web browser. Bitcoin transactions are also irreversible, reducing the risk of chargeback fraud and providing additional security.

OpenNode has a simple fee structure with no setup, monthly, or annual fees, and no contractual obligations. Businesses pay a per-transaction fee for Bitcoin payouts, with higher fees for high-risk industries. Scheduled transfers are free, instant on-chain transfers have a 1% fee, and Lightning Network transfers are always free. Bank transfers in local currencies incur a 0.2% fee, with a $15 USD wire transfer fee for unsupported currencies, and no conversion fees.

While OpenNode boasts a range of features, one notable limitation is the restricted conversion options for users. Currently, the platform only supports instant conversion to USD, and bank transfers to US-based accounts. Your company’s principal place of business must be in the U.S. This lack of flexibility in settlement currencies, particularly in terms of fiat options beyond USD, could be seen as a downside for some users. As the platform continues to evolve, it’s possible that additional currencies and features will be added, but for now, this restricted scope may be a point of consideration for some.

Additionally, OpenNode is Bitcoin-only, which simplifies operations by focusing on a proven digital asset and avoiding the complexities of managing multiple cryptocurrencies. However, it is not an open-source Bitcoin payment gateway, which may limit flexibility compared to alternatives like BTCPay Server. OpenNode also requires businesses to comply with Know Your Customer (KYC) regulations, which may be a downside for privacy-conscious business owners. If you are seeking a non-KYC solution, alternatives like BTCPay Server and Blockonomics might be better options.

While OpenNode does not provide a self-hosted solution like BTCPay Server, it offers a cloud-based service that includes all the necessary tools for businesses to easily accept Bitcoin payments without the hassle of maintaining their own payment processing infrastructure.

OpenNode Alternatives

Here are several alternatives to OpenNode for Bitcoin payment processing, offering varying features and capabilities:

• BTCPay Server
• Blockonomics
• Coinos
• BitPay

More Information

• Documentation to implement OpenNode API
• List of supported currencies
• OpenNode on Twitter