Due to the volatile nature of cryptocurrency, the price of specific cryptos can change between the time a payment is initiated to the time the payment is received. This price change often delays or denies payments even when the price difference is minimal. If you add different exchange rates into the mix, prices can fluctuate even more.
Now as a merchant, you can set up Flexible payments to allow more payments to be approved with greater consistency.
What is Flexible payments?
Flexible payments allows you to set specific thresholds for payments that are slightly more or slightly less than the listed price. This prevents payments from getting flagged if they aren't the exact listed price for a good or service.
As a merchant, you can set adjustable overpayment and underpayment thresholds that will accept a payment from a customer as long as the payment doesn't deviate outside of those thresholds. You decide the threshold and you decide if it's a number (absolute), percentage (relative), or both. If you choose to set up both, the payment will accept at the stricter threshold.
What are absolute and relative thresholds?
An absolute threshold is a number value that the underpayment or overpayment from a customer can fall within while still being approved ($5.00 for example).
A relative threshold is a percentage that the underpayment or overpayment from a customer can fall within while still being approved (2% for example).
If I set an absolute and relative threshold, which is approved?
The stricter threshold will always be the one that's approved to ensure that the payment is as close to the original price as possible.
Say a merchant sets up an underpayment threshold of 2% (relative) and $0.25 (absolute). On a $10 checkout, a payment of $9.75 is received from the customer. This is marked as an underpayment because it's outside the range of the stricter threshold (2%). If the threshold was 3%, the payment would have been marked as completed.
Do I have to set a minimum and maximum threshold?
Yes, you have to set at least one minimum and one maximum threshold. These can be either absolute or relative thresholds. You can remove an absolute or relative threshold, but you'll always need at least one for both overpayment and underpayment.