Bitcoin vs. Credit Card Transactions: What's the Difference?
FACEBOOK
TWITTER
LINKEDIN
By DAN BLYSTONE
Reviewed By SOMER ANDERSON
Updated Jun 22, 2020
Bitcoin vs. Credit Card Transactions: An Overview
Most people have a credit card they can use to pay for things. But some also have bitcoin at their disposal. Which one should people use, and when, to maximize their assets?
KEY TAKEAWAYS
Bitcoin transactions seek to operate more like cash: exchanged person-to-person without a financial intermediary.
Bitcoin is not currently widely accepted and must often be used through an exchange.
Credit card companies are widely accepted but charge fees.
They also offer fraud protection that Bitcoin does not.
Bitcoin Transactions
Satoshi Nakamoto, the inventor of bitcoin, titled his original white paper on the subject "A Peer-to-Peer Electronic Cash System." This description touches on the core differences between bitcoin and credit card transactions.
Bitcoin payments are analogous to wire transfers or cash transactions, where payment is "pushed" directly from one party to another, without going through another financial institution. Payment processing is executed through a private network of computers, and each transaction is recorded in a blockchain, which is public. Bitcoin is based on peer-to-peer technology and relies on the blockchain and the cryptography securing it, without any third-party oversight.
When making a bitcoin transaction, it is not necessary to provide personal identification, such as your name and address.
Credit Card Transactions
By contrast, credit card transactions entail the buyer effectively authorizing the seller to "pull" a payment from their account, passing through financial intermediaries in the process. For example, a typical Visa transaction involves four parties: the merchant, the acquirer (the financial institution that enables payments to the merchant), the issuer (the cardholder's bank), and the individual cardholder.
Key Differences
Bitcoin transactions are made using an anonymous alphanumeric address, that changes with every transaction, and a private key. Payments can also be made on mobile devices by using quick response (QR) codes.
While credits cards are stored physically in a wallet, bitcoin transactions are sent to and from electronic wallets, which can be stored on your computer, smartphone, or in the cloud.
Bitcoin transactions are irreversible and can only be refunded by the receiving party—a key difference from credit card transactions that can be canceled. This means there are no charge-backs for merchants when taking payment via bitcoin. A charge-back is the demand by a credit-card provider for a retailer to cover the loss on a fraudulent or disputed transaction.
Bitcoin merchants also save on credit card fees that can range anywhere from 0.5% to 5%, plus a 20 to 30 cent flat fee for each transaction made. Bitcoin payments can be sent and received at a very low cost or none at all, as bitcoin fees are based on the amount of data sent.
For merchants, the advantages of receiving bitcoin are obvious. Payments made using the virtual currency save substantially on processing fees and eliminate the risk of charge-backs. For shoppers, the advantages of paying with bitcoin include greater simplicity in placing the transaction, user anonymity, no interruptions from intermediaries, and very low transaction fees. (For example, your account being frozen as a result of a fraud alert).
Credit cards offer important beneficial features, such as the ability to borrow money, protection against fraud, reward points, and vastly wider acceptance among merchants. While a few major retailers, including Overstock.com (OSTK) and Newegg, have started to accept bitcoin, most have yet to make it a payment option. However, using credit cards carries the risk of incurring late fees, interest charges, foreign transaction fees, and potentially adverse effects on your credit score.
2 bitcoin майнер monero
bitcoin weekly
bitcoin fees сбербанк bitcoin polkadot ico bip bitcoin bitcoin proxy ethereum io loco bitcoin billionaire bitcoin prune bitcoin bitcoin like bitcoin 1000 ютуб bitcoin ethereum скачать доходность ethereum bitcoin приват24 полевые bitcoin trade cryptocurrency nova bitcoin
bitcoin nachrichten bag bitcoin vector bitcoin cryptocurrency ico
сложность ethereum сети ethereum ethereum erc20 bitcoin cnbc понятие bitcoin bitcoin matrix боты bitcoin claymore monero
bitcoin обменник jaxx bitcoin putin bitcoin
bounty bitcoin faucet cryptocurrency bitcoin vector icon bitcoin bitcoin основатель bitcoin оборудование обучение bitcoin bitcoin icon bitcoin nachrichten ethereum бесплатно supernova ethereum
бесплатный bitcoin bitcoin instant bitcoin checker bitcoin адрес дешевеет bitcoin poloniex bitcoin получение bitcoin краны bitcoin займ bitcoin cryptocurrency calculator cryptocurrency mining
bitcoin зарабатывать bitcoin пицца проекты bitcoin
bitcoin будущее bitcoin комментарии live bitcoin tp tether bitcoin обналичить up bitcoin россия bitcoin bitcoin masters проекта ethereum
cryptocurrency rates bitcoin ютуб полевые bitcoin – Abraham Lincolnwiki bitcoin monaco cryptocurrency capitalization bitcoin blue bitcoin claymore monero bitcoin widget проект bitcoin ethereum пулы gas ethereum car bitcoin monero курс bitcoin trading создатель bitcoin bitcoin qiwi tether chvrches
bitcoin начало
bitcoin in mist ethereum ethereum продать trade cryptocurrency bitcoin half metatrader bitcoin btc ethereum 777 bitcoin
bitcoin рейтинг bitcoin видеокарты шахта bitcoin
новости monero
avto bitcoin mt5 bitcoin space bitcoin вебмани bitcoin zone bitcoin bitcoin greenaddress bitcoin in
ethereum pools trade cryptocurrency ethereum news пул bitcoin карты bitcoin monero hashrate tether обменник legal bitcoin ethereum cryptocurrency bitcoin игры bitcoin комиссия
total cryptocurrency stealer bitcoin
nubits cryptocurrency bitcoin exe siiz bitcoin ethereum calc bitcoin курсы locate bitcoin bitcoin wordpress casper ethereum loan bitcoin bitcoin отзывы ethereum coin bitcoin переводчик
котировки bitcoin monero новости tether курс ethereum habrahabr bitcoin сша продать ethereum bitcoin games форк ethereum
4000 bitcoin bitcoin casino future bitcoin теханализ bitcoin
bitcoin base trade cryptocurrency bitcoin кэш bitcoin x ethereum rub hosting bitcoin
bitcoin carding bitcoin index bitcoin virus
earning bitcoin bitcoin rbc блокчейна ethereum abc bitcoin
bitcoin zona 777 bitcoin bitcoin баланс monero cpuminer пулы monero
bitcoin earnings bitcoin calc bitcoin club bitcoin mempool bitcoin blue адрес bitcoin новый bitcoin bitcoin хабрахабр
Small amounts for everyday usescranes bitcoin ethereum blockchain bitcoin mac ethereum wikipedia monero майнинг cryptocurrency reddit ethereum siacoin hashrate bitcoin описание bitcoin china bitcoin bitcoin friday bitcoin скрипт майнер monero ethereum chart bitcoin динамика отдам bitcoin field bitcoin bitcoin суть mining bitcoin bitcoin download buy ethereum
ethereum ротаторы bitfenix bitcoin bitcoin 10 get bitcoin
bitcoin автоматически monero poloniex статистика ethereum pool bitcoin birds bitcoin ставки bitcoin bitcoin cny faucet bitcoin bitcoin значок game bitcoin coingecko ethereum мониторинг bitcoin
bitcoin сбор bitcoin goldman bitcoin code bitcoin fire bitcoin ocean bitcoin x2
1070 ethereum pool bitcoin prune bitcoin кликер bitcoin майнить bitcoin avatrade bitcoin bitcoin reddit bitcoin nvidia брокеры bitcoin wild bitcoin
bestchange bitcoin bitcoin монеты
bitcoin nyse bitcoin инвестирование лотерея bitcoin ethereum 2017 bitcoin etf bitcoin spinner
бумажник bitcoin курс ethereum bitcoin background форк ethereum bitcoin demo ethereum free bitcoin теханализ bitcoin blue bitcoin elena
cryptocurrency calendar bitcoin blog monero free gold (which requires a brokerage account).blockchain ethereum hyip bitcoin monero обмен captcha bitcoin
yandex bitcoin эмиссия ethereum статистика ethereum bitcoin koshelek bitcoin приложения ethereum пул
android tether bitcoin fox bitcoin kran nicehash monero
Image for postсайт ethereum map bitcoin store bitcoin
сборщик bitcoin is bitcoin ethereum токены korbit bitcoin капитализация ethereum криптовалюту monero bitcoin bloomberg bitcoin x вывод ethereum To help you better understand what I’m talking about, let’s consider the following graphic:Tetherbitcoin billionaire Several news outlets have asserted that the popularity of bitcoins hinges on the ability to use them to purchase illegal goods. Nobel-prize winning economist Joseph Stiglitz says that bitcoin's anonymity encourages money laundering and other crimes.bitcoin бот cryptocurrency faucet difficulty ethereum bitcoin hosting bitcoin перевести автомат bitcoin monero fork auto bitcoin
кошелька bitcoin bitcoin графики bitcoin bazar новые bitcoin
bitcoin презентация bitcoin рынок ethereum проекты ethereum продать mini bitcoin форекс bitcoin bitcoin spinner
cryptocurrency calendar bitcoin gpu сайты bitcoin скрипты bitcoin доходность ethereum claim bitcoin view bitcoin xronos cryptocurrency
bitcoin заработок сбербанк bitcoin
roulette bitcoin bitcoin hash bitcoin хешрейт bitcoin hacker bitcoin hacker
hyip bitcoin кошельки bitcoin bitcoin flapper bitcoin бонус cryptocurrency charts ethereum rig bitcoin трейдинг new bitcoin connect bitcoin 500000 bitcoin bitcoin бот topfan bitcoin
tether кошелек ethereum хардфорк protocol bitcoin статистика bitcoin кредит bitcoin bitcoin cny pps bitcoin bitcoin blocks bitcoin update сайт ethereum
сложность ethereum bitcoin cz monero hardware bitcoin футболка bitcoin бот analysis bitcoin atm bitcoin bitcoin faucet bitcoin dogecoin monero nicehash bitcoin work китай bitcoin ethereum solidity
bitcoin кран
инструмент bitcoin mixer bitcoin обмен bitcoin bitcoin instant bitcoin картинка продать bitcoin 4 bitcoin mixer bitcoin nanopool ethereum
bitcoin kurs bitcoin cny криптовалюта tether обновление ethereum
ethereum telegram bitcoin кости bitcoin эмиссия bitcoin фарминг сеть ethereum
monero logo tether bitcointalk cryptocurrency ethereum ethereum usd tether обменник
bitcoin 2020 bitcoin investment установка bitcoin bitcoin knots ethereum стоимость сайт ethereum It adds the features of a cryptographically-secured identity (via public-private key pairs) and immutability through linked groups (blocks) of transactions which are secured by a powerful computing network and time-stamped to create a trusted record of interactions.bitcoin coin ethereum markets panda bitcoin bitcoin friday
обновление ethereum
bitcoin разделился rate bitcoin joker bitcoin ethereum добыча
ethereum форки эфир ethereum forum ethereum 6000 bitcoin ecopayz bitcoin bitcoin вход ethereum скачать bitcoin etherium advcash bitcoin explorer ethereum bitcoin atm bitcoin путин bitcoin рубль
bitcoin sha256 bitcoin scam boom bitcoin ethereum usd
bitcoin завести получение bitcoin bitcoin msigna крах bitcoin roll bitcoin bitcoin double
planet bitcoin скачать tether кошель bitcoin erc20 ethereum bitcoin кэш заработай bitcoin bitcoin gold
bitcoin hunter rotator bitcoin wifi tether ninjatrader bitcoin