How Does It Work:

Consumers can get Digital currencies by creating an online account and buying the currency with traditional currencies such as a credit card or a bank account.  Some Digital currencies can also be obtained by mining.  This is using computers to perform specific tasks such as crunching numbers (process digital transactions)  to unlock codes which is used to generate the Digital currency.

Consumers also sign up for an account and purchase the coin which they inturn use to make payments for products.

Merchants/businesses must sign up for a Digital currency account.  Payments made to the business will be deposited into this account. 

Merchants/businesses can accept payments manually or sign up for a merchant service account and start accepting payments through an automated Point of Sale System. 

Manually accepting payments means that you have to manually maintain a log to track every transaction.  The merchant service will allow you to automate the tracking of each transaction.  Learn more about accepting bitcoin payments.

You can accept payment in digital currencies from anyone anywhere in the world.  You can provide change in traditional currency or digital currency. 

At the time of payment the digital currency is converted to the equivalent local currency.

The value of the Digital currencies varies because they are traded on exchanges.  Hence, when you convert the Digital currency to real currency the value will vary.  Some of these exchanges include; Coins-e, DCXTX and AlphaPoint.