Overview

With the introduction of bitcoin, merchants who run e-commerce businesses for the first time can offer their services to anyone in the world who has a bitcoin wallet to pay for their services or products. Bitcoin has advantages over existing payment methods such as credit cards There are three ways by which Bittoku can provide for merchants to receive payments in bitcoin, through the merchants e-commerce site, through an email invoice, or directly through Bittoku site when logged in as a merchant account.

E-commerce site integration

  1. Customer shops at the merchant site and purchases 1000JPY of goods, on checkout the customer clicks on 'Buy with Bitcoin' button, which directs an invoice request to be sent to Bittoku servers, and directs the clients to the Bittoku site.
  2. Bittoku replies with a quote conversion of what 1000JPY currently equates to and creates a timed invoice for the merchant to post to the client, which is presented to the client.
  3. Customer pays.
  4. End of the business day, Bittoku transfers the accumulated funds to the client, minus fees.

Pay through an invoice linked mail

  1. User buys 1000JPY of products from merchant site, and chooses 'Pay with Bitcoin'.
  2. Merchant sends an email invoice to the user, with the quoted total in JPY.
  3. User clicks the link in the email, which redirects to Bittoku and generates a new invoice with an up-to-date exchange rate of 20mBTC. User pays via smartphone scan of the QR code or pays with wallet software
  4. Bittoku transfers funds to the merchant's bank, minus fees.

Direct Invoice Generation (POS)

  1. Merchant logs onto Bittoku merchant console on an iPad or smartphone, and enters the JPY amount which the customer is to pay.
  2. User scans the QR code invoice and pays.
  3. Bittoku transfers the accumulated funds to the merchant's bank, minus fees.

Merchant Invoices

Bittoku service will allow clients to create invoices, which has value quoted in JPY and priced in BTC. These invoices will have a time limit (default 5min-15min depending on the client setting) when which the quoted price in BTC is accepted. After the time-out, the invoice will be made invalid, and cannot be paid. A new invoice will need to be created from the quote, either from the Merchant Admin Console or from the email link.

FX Exchange Risk

All risk associated with the fluctuation in the price of bitcoin vs Japanese Yen will be carried by Bittoku. The merchant client will always be paid the amount of the quote (minus our fees). In this way, our merchant clients can enjoy all the benefits of taking bitcoin as a payment method, with none the risk of loss due to changes in bitcoin market price.

Fees and Commissions

For use of our invoice management and reporting system, and in order to compensate for the management of the BTC/JPY exchange (kawase) risk, Bittoku will charge our clients a fee in the form of 1% on the JPY amount of each transaction, paid by deducting the amount of JPY we pay the client in exchange for the quoted amount of bitcoin on any invoice.

Fund Settlement

Funds will be transmitted by bank transfer to the merchant bank account on a weekly or daily schedule, depending on the number of transactions. Alternatively, when certain pre-agreed amount limits have been met, they will be transmitted

Merchant Admin Console

The Merchant Admin Console (MAC) is a login at the Bittoku servers that allows merchants to manage their invoices. It shows all invoice history and the state at which they are in. Besides viewing the invoices and their status, merchants can also resolve invoices that are in HELD state, (caused by erroneous payments or overpayments) and also see the balance of their account.

The states in which invoices can be are as follows:

NEW
This is the state that all invoices start. They have a quoted BTC value, and are good for a limited amount of time, currently set at 15min.
PAID
This means that the invoice has been paid in full.
CONFIRMED
This means that the invoice has been paid in full, and has received at least 1 confirmation from the network.
COMPLETE
This is an invoice that has received at least 6 confirmations from the network.
CLEARED
This is a complete invoice whose proceeds have been transferred to the merchant's bankby Bittoku.
HELD
This is an invoice that is in some errored state. This may occur due to an invoice being paid after it has been expired, or overpaid. In most cases this will require the merchant to resolve the invoice by logging onto the MAC, and either releasing the funds back to the sender, or confirming the invoice as being PAID.
EXPIRED
This is an invoice that has exceeded its timeout, and therefore the BTC rate quoted is nolonger valid and the invoice cannot be paid.

Merchant Integration Types

Timed quote/invoice
Site redirection (quoted JPY, payable in BTC, with live rate).
POS system.
Persisted quote
Direct invoice embedded HTML request (for static JPY amounts)
e-mail invoice (static JPY amounts).
Non-timed quote
Direct payment to address (payable in BTC only).