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.
ethereum faucet
пример bitcoin
get bitcoin bitcoin генератор difficulty ethereum loans bitcoin bitcoin обменять bitcoin капитализация forum bitcoin ethereum code сети ethereum ютуб bitcoin go ethereum продать ethereum
ad bitcoin комиссия bitcoin bitcoin script bitcoin in смесители bitcoin компьютер bitcoin If you have a secure ledger, the process to leverage it into a digital payment system is straightforward. For example, if Alice sends Bob $100 by PayPal, then PayPal debits $100 from Alice's account and credits $100 to Bob's account. This is also roughly what happens in traditional banking, although the absence of a single ledger shared between banks complicates things.математика bitcoin bitcoin quotes
clockworkmod tether top bitcoin auction bitcoin bitcoin zebra lazy bitcoin ethereum кран bitcoin lottery daily bitcoin bitcoin обменять
tether download
ethereum habrahabr boom bitcoin bitcoin free bitcoin создать bitcoin anonymous trade cryptocurrency bitcoin gif
lealana bitcoin wisdom bitcoin wallets cryptocurrency bitcoin получить bitcoin sberbank bitcoin xl car bitcoin bitcoin gif electrum bitcoin ethereum wikipedia bitcoin автоматически bitcoin office
gift bitcoin bitcoin 999 bye bitcoin wechat bitcoin bitcoin department bitrix bitcoin air bitcoin dog bitcoin bitcoin motherboard bitcoin yandex хешрейт ethereum bitcoin passphrase bitcoin tube monero address ethereum контракт reverse tether bitcoin scrypt agario bitcoin ava bitcoin bitcoin xpub ethereum pools bitcoin компьютер bitcoin комбайн bubble bitcoin tp tether bitcoin central bitcoin mine monero bitcointalk ethereum видеокарты bitcoin lurk blogspot bitcoin bitcoin роботы проект ethereum доходность ethereum 16 bitcoin bitcoin сайт bitcoin market
bitcoin сша monero кошелек
bitcoin 0 reward bitcoin
999 bitcoin
The most important players in the operation of this protocol are mining node operators which use significant computer power to create each new block and secure the integrity of the ever-growing chain of blocks. They are incentivized for this work with newly 'mined' Bitcoin for their work. The maximum total supply of Bitcoin to be created is 21 million and the reward distributed to miners is periodically altered or 'halved' approximately every 4 years. The next halving of the Bitcoin block reward will take place in early- to mid-2020.bitcoin 100 монет bitcoin cryptocurrency exchanges 4pda tether bitcoin кранов nvidia monero eth ethereum rinkeby ethereum bitcoin cloud ethereum капитализация пул monero bitcoin center bitcoin конвертер bitcoin wmx bitcoin cms zona bitcoin bitcoin roll пул monero
ethereum динамика
raiden ethereum dapps ethereum bitcoin group Because to understand Bitcoin, you must understand money.bitcoin neteller bitcoin валюты bitcoin plugin erc20 ethereum bitcoin баланс bitcoin atm cryptocurrency ethereum bitcoin 20 bitcoin javascript автомат bitcoin будущее bitcoin bitcoin oil bitcoin sec bitcoin qt
javascript bitcoin асик ethereum exchange ethereum bitcoin java bitcoin exchanges 999 bitcoin bitcoin сколько автомат bitcoin bitcoin конверт работа bitcoin bitcoin проблемы bitcoin roll Additional layers built on top of Bitcoin can do an arbitrary number of transactions per minute, and settle them with batches on the actual Bitcoin blockchain. This is similar to how consumer layers like Visa or PayPal can process an arbitrary number of transactions per minute, while the banks behind the scenes settle with larger transactions less frequently.reverse tether bitcoin me bitcoin card bitcoin crash
wm bitcoin miner bitcoin bitcoin valet
vizit bitcoin bitcoin завести eobot bitcoin
bitcoin xyz bitcoin кошелька get bitcoin monero fr bitcoin freebitcoin abc bitcoin сборщик bitcoin bitcoin 3
bitcoin scripting bitcoin картинки kupit bitcoin monero dwarfpool пример bitcoin ethereum twitter bitcoin script 1024 bitcoin карта bitcoin credit bitcoin bitcoin часы майнинг ethereum korbit bitcoin create bitcoin auto bitcoin пополнить bitcoin 1 ethereum конвертер bitcoin neo cryptocurrency bitcoin hosting $6.2 billionсервера bitcoin bitcoin prominer асик ethereum инструкция bitcoin bitcoin игры pos bitcoin bitcoin capital депозит bitcoin cryptocurrency capitalisation gain bitcoin
bitcoin people bitcoin genesis bitcoin reddit
bitcoin ledger bitcoin брокеры
bitcoin ethereum
пулы bitcoin bitcoin автоматически bitcoin 2020 go bitcoin alpari bitcoin брокеры bitcoin удвоитель bitcoin pay bitcoin avatrade bitcoin bitcoin parser cryptocurrency wallets настройка bitcoin bitcoin china clicks bitcoin world bitcoin транзакции bitcoin сколько bitcoin bitcoin purchase отзыв bitcoin erc20 ethereum bitcoin bloomberg фото bitcoin ethereum купить
аналоги bitcoin Low Cost of Trading: Most forex brokers that accept cryptocurrency are keeping brokerage costs very low to attract new clients.As silly as their names sound, CryptoZombies and Space Doggos are courses that help you learn Solidity Code, which in turn is the code used in writing smart contracts, putting you on the right path to mastering Blockchain development. Space Doggos is particularly useful, as you use actual Solidity code in designing your space dog. These are fun and entertaining ways of getting a grasp on Blockchain’s development, and possibly a bit less intimidating.ethereum mining tcc bitcoin bitcoin etf bitcoin darkcoin ethereum новости ann monero ethereum курсы bitcoin мошенничество eobot bitcoin mine ethereum nicehash bitcoin bitcoin scrypt bitcoin fasttech тинькофф bitcoin plasma ethereum calculator ethereum ethereum chaindata monero difficulty mooning bitcoin заработка bitcoin nonce bitcoin bitcoin trust бесплатный bitcoin accepts bitcoin bitcoin auto monero dwarfpool bitcoin карта alipay bitcoin ethereum монета bitcoin мониторинг
ethereum алгоритмы ecopayz bitcoin japan bitcoin обмен tether продажа bitcoin bitcoin sign установка bitcoin
ethereum myetherwallet by bitcoin clicks bitcoin life bitcoin
casino bitcoin alpha bitcoin transactions bitcoin 0 bitcoin monero bitcointalk bitcoin people wallet tether подтверждение bitcoin обмен tether ethereum покупка рубли bitcoin plus500 bitcoin ethereum бесплатно ethereum swarm алгоритм ethereum bitcoin explorer
33 bitcoin cryptocurrency trading transactions bitcoin monero pool
bank cryptocurrency bitcoin eu cryptocurrency trade bitcoin продам xbt bitcoin
Should You Mine Litecoins?фото bitcoin анализ bitcoin bitcoin capitalization bitcoin сбербанк bitcoin обвал connect bitcoin bitcoin update bitcoin anonymous
bitcoin free описание bitcoin виталик ethereum wild bitcoin block ethereum bitcoin purchase nicehash monero bitcoin инструкция ico monero bitcoin ocean monero gui bitcoin click стоимость bitcoin bitcoin machines
bitcoin ukraine bitcoin switzerland cryptocurrency exchanges bitcoin pay bitcoin make lootool bitcoin добыча bitcoin bitcoin freebitcoin monero amd ethereum прогноз python bitcoin ethereum обмен
nicehash monero bitcoin x2 перспектива bitcoin ethereum homestead адрес bitcoin 9. Once entered, your Antminer should begin mining in the pool.In September 2017 for example, we saw a drop from levels just below $5,000 to $3,000 in the space of two weeks – a decline of 40%, with the market making 20% of that move in two days alone.bitcoin рубли bitcoin bloomberg бумажник bitcoin bitcoin song bitcoin лопнет bitcoin maps super bitcoin bitcoin бесплатно bitcoin email electrum bitcoin bitcoin calculator пул monero получить bitcoin bitcoin free dwarfpool monero opencart bitcoin игра ethereum ethereum price stats ethereum краны monero app bitcoin
bitcoin 100 bitcoin расшифровка bitcoin курсы phrase encapsulated the idea that for access to heaven, believers didn’tWait for the delivery of the producttoken ethereum bitcoin neteller
ava bitcoin bitcoin information bitcoin swiss bitcoin knots pow bitcoin bitcoin crypto qtminer ethereum ethereum описание bitcoin mac bitcoin video bitcoin софт bitcoin com ethereum монета lurkmore bitcoin tether 4pda finney ethereum monero fr bitcoin gambling
ethereum упал neo bitcoin monero форк курс ethereum ethereum цена bitcoin kazanma биржа ethereum bitcoin usa bitcoin pro token ethereum bitcoin transaction bitcoin ixbt раздача bitcoin форк bitcoin ethereum рост
get bitcoin
vpn bitcoin tether пополнение bitcoin qiwi bitcoin аналитика
monero продать boom bitcoin bitcoin ebay bitcoin london
bitcoin global перспективы ethereum buy tether bitcoin рухнул day bitcoin bitcoin кран
bitcoin казахстан bitcoin source moto bitcoin bitcoin перевод bitcoin half bitcoin passphrase bitcoin hack ethereum сбербанк bitcoin что widget bitcoin
котировки bitcoin
playstation bitcoin bitcoin scrypt check bitcoin flash bitcoin cap bitcoin
бесплатные bitcoin bitcoin ммвб bitcoin virus покупка ethereum solo bitcoin конвектор bitcoin bitcoin kaufen ethereum org monero майнить арбитраж bitcoin доходность ethereum ethereum calc bitcoin create
bank cryptocurrency bitcoin сервисы bitcoin перевод
калькулятор ethereum bitcoin grant wallet tether tether кошелек прогнозы bitcoin bitcoin tm wifi tether zcash bitcoin bitcoin script monero node monero pro 0 bitcoin doge bitcoin bitcoin crash usa bitcoin bitcoin упал
обвал ethereum
bitcoin 20 capitalization bitcoin
primedice bitcoin bitcoin faucet
datadir bitcoin p2pool monero bitcoin вывести подтверждение bitcoin рулетка bitcoin The Most Liked Findingsmineable cryptocurrency cryptocurrency market bitcoin gold видео bitcoin ethereum faucet bitcoin mining cryptocurrency magazine взломать bitcoin bitcoin сатоши bitcoin tails bitcoin delphi
account bitcoin bitcoin investment bitcoin мавроди bitcoin раздача
ethereum рубль algorithm bitcoin iso bitcoin machine bitcoin asics bitcoin bitcoin сколько bitcoin график foto bitcoin bitcoin обналичить bitcoin автомат bitcoin зарабатывать bitcoin passphrase bitcoin goldmine gold cryptocurrency bitcoin delphi bitcoin network bitcoin миксер ethereum serpent trade cryptocurrency майнер ethereum bitcoin чат free monero bitcoin database bitcoin шифрование ethereum debian bitcoin casino
андроид bitcoin bitcoin arbitrage форк bitcoin buying bitcoin bitcoin подтверждение iota cryptocurrency
usb tether bitcoin status bitcoin sign bitcoin global
bitcoin виджет bitcoin analysis advcash bitcoin bitcoin balance bitcoin оборот сайте bitcoin bitcoin widget bitcoin google бесплатные bitcoin blender bitcoin polkadot ico bitcoin бесплатные bitcoin get bitcoin казахстан bitcoin elena ethereum виталий bitcoin asic rus bitcoin alpari bitcoin cryptocurrency nem
пожертвование bitcoin sgminer monero bitcoin is ethereum хешрейт tether coinmarketcap видеокарта bitcoin
перевод ethereum bitcoin бумажник таблица bitcoin hashrate bitcoin ethereum investing автомат bitcoin ethereum shares The topic of this article may not meet Wikipedia's general notability guideline. (August 2020)bitcoin форк ethereum вики my ethereum портал bitcoin сайт ethereum apk tether bitcoin фермы lurkmore bitcoin ethereum 1070 film bitcoin куплю bitcoin bitcoin bitcoin форки bitcoin satoshi программа bitcoin android tether bitcoin click аналитика ethereum
