Accepting Bitcoin doesn't mean you have to hold Bitcoin. For many merchants — especially those new to Bitcoin or running businesses with tight cash flow — the appeal of zero fees and instant settlement is real, but the idea of holding a volatile asset is not. That's a completely reasonable position, and it has a straightforward solution.
This article explains your two main options for getting dollars from Bitcoin payments, and walks through exactly how to set up automatic conversion on Coinbase so the process is hands-off after the initial setup.
Your two paths to dollars
Before setting up conversion, it's worth knowing that there are actually two different ways to solve the "I want dollars" problem — and one of them requires no conversion at all.
If you haven't already, read our guide to stablecoins for merchants — for many businesses it's the cleanest answer. But if you want to accept Bitcoin specifically, or want to support the full range of crypto your customers might have, auto-conversion is the right approach.
How auto-conversion works
The basic flow is simple. A customer pays you in Bitcoin. It arrives in your wallet — your wallet, that you control, not OrangeTill's. You then have Coinbase set up to automatically sell any incoming crypto for dollars, and transfer those dollars to your bank account on a regular schedule.
OrangeTill is not involved in this conversion step at all. We deliver the payment to your wallet — what happens next is entirely up to you and your exchange of choice.
Coinbase is the largest US-based crypto exchange, is publicly traded, and is generally considered the most beginner-friendly option for merchants. It's not the only choice — Kraken, Gemini, and River are solid alternatives — but this guide focuses on Coinbase because it has the clearest auto-conversion setup and the most straightforward bank connection process.
Setting up Coinbase for auto-conversion
This is a one-time setup. Once it's done, the process runs automatically every time you receive a Bitcoin payment.
What this actually costs
Auto-conversion through Coinbase is not free — but it's still significantly cheaper than traditional card processing for most merchants. Here's the honest breakdown:
- Coinbase conversion fee: approximately 0.5–1.5% of the transaction value, depending on your monthly volume
- OrangeTill subscription: flat monthly fee, nothing per transaction
- Bank transfer: free via ACH (1–3 days) or a small fee for instant transfer
Compare that to a standard card processor at 2.9% + $0.30 per transaction. Even with Coinbase's conversion fee, you're likely paying less — and you're getting instant settlement on the crypto side rather than waiting 2–3 days for card funds to clear.
The tax piece you need to know
This is important: when Coinbase converts your Bitcoin to dollars, that conversion is a taxable event. The IRS treats it as a sale of property. If Bitcoin's price went up between when you received it and when Coinbase converted it — even by a few minutes — you technically have a small capital gain. If it went down, you have a small capital loss.
In practice, if you're converting immediately on receipt, the price difference is negligible and the tax impact is minimal. But you should be aware it exists, and Coinbase will provide a tax report at year end showing all your conversions.
This is one reason some accountants recommend stablecoins for merchants who want dollar-equivalent payments — because USDC and USDT are pegged to $1 and don't fluctuate, there's no capital gain or loss on conversion. Simpler tax picture, no price risk window.
A note on address management
One thing to be aware of: if you use your Coinbase receiving address as your OrangeTill wallet address, payments go directly to Coinbase and you never have self-custody of the Bitcoin. That's fine if dollars are your goal — but it means you're trusting Coinbase as a custodian for the brief period between receipt and conversion.
If you want to maintain self-custody even briefly, you can receive payments into your own wallet first, then manually transfer to Coinbase for conversion. This adds a step and an extra transaction fee, so most merchants who want dollars just use the Coinbase address directly.
If you haven't yet read our breakdown of Bitcoin, dollars, and stablecoins, it gives useful context for making this decision: Bitcoin, dollars, and stablecoins: understanding what you're actually holding →
And if stablecoins sound like the simpler path for your business: Stablecoins for merchants — accept Bitcoin without the volatility →
The content on this page is for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. Cryptocurrency markets are volatile and carry significant risk. Exchange fees, features, and policies referenced in this article may change — always verify current information directly with Coinbase or your exchange of choice. Always consult a qualified financial advisor, accountant, or legal professional before making investment or business decisions. OrangeTill is a payment processing tool, not a financial advisory service.