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.
blender bitcoin робот bitcoin bitcoin security equihash bitcoin electrum ethereum android tether карты bitcoin production cryptocurrency биржа ethereum майнинга bitcoin bitcoin anonymous
криптовалюта ethereum
buy tether bitcoin testnet bitcoin it bitcoin bounty bitcoin форекс bitcoin analytics bitcoin adress bitcoin multiplier ethereum programming ethereum info escrow bitcoin mail bitcoin ethereum solidity bitcoin математика Phishingmine ethereum
index bitcoin ethereum online bitcoin planet bitcoin auto bitcoin пожертвование bitcoin spinner bitcoin reddit bitcoin магазин ethereum contract bitcoin видео bitcoin phoenix redex bitcoin ethereum покупка bitcoin прогнозы bitfenix bitcoin Binance cryptocurrency trading platform logomonero logo monero майнить bitcoin википедия ethereum algorithm weather bitcoin
electrum ethereum moneybox bitcoin bitcoin зебра bitcoin linux ethereum сайт обвал ethereum bitcoin брокеры bitcoin бесплатные bye bitcoin майнинг ethereum bitcoin word bitcoin blockchain
ethereum android bitcoin cnbc bitcoin sberbank технология bitcoin faucet cryptocurrency cryptocurrency market bitcoin луна bitcoin nachrichten win bitcoin home bitcoin
neteller bitcoin ethereum статистика love bitcoin криптовалют ethereum server bitcoin bitcoin eth mikrotik bitcoin
bitcoin gift обновление ethereum se*****256k1 bitcoin bitcoin xl
mine ethereum nxt cryptocurrency майнить ethereum The best way to learn more is to download a wallet, get some ETH and try an Ethereum dapp.bitcoin links nicehash bitcoin автомат bitcoin mine monero опционы bitcoin clame bitcoin компиляция bitcoin bitcoin цены bitcoin get bitcoin monkey bitcoin putin bitcoin сбор создать bitcoin bitcoin help monero купить bitcoin china bitcoin virus block ethereum покер bitcoin bitcoin список bitcoin loan
генератор bitcoin trader bitcoin bitcoin mmm bitcoin шахты bitcoin stiller форумы bitcoin Providing a decentralized alternative to tech platforms has challenges. While services like Amazon Web Services (AWS) stores petabytes of data to support the operation of thousands of applications, the Ethereum network once experienced performance issues due to a single app called CryptoKitties, which essentially lets users trade digital cats. capitalization cryptocurrency
Have you ever wondered which crypto exchanges are the best for your trading goals?ethereum купить bitcoin charts monero форум bitcoin oil bitcoin mixer bitcoin reindex monero asic
bitcoin rt использование bitcoin кошельки bitcoin loan bitcoin blogspot bitcoin
bitcoin dark bitcoin center ethereum investing pokerstars bitcoin пулы bitcoin проблемы bitcoin
blocks bitcoin A cryptocurrency market is an exciting place. Traders can make millions and then lose it all. Cryptocurrencies are created overnight and then disappear just as fast. My advice to any newbie trader out there is to only spend what you can afford to lose. I know I sound like your Grandma, but it’s true!ethereum кошельки bitcoin scam bitcoin background шифрование bitcoin mining ethereum
polkadot su bitcoin тинькофф сеть bitcoin
monero майнить ethereum microsoft polkadot store банк bitcoin
bitcoin chart кошелька ethereum chart bitcoin bitcoin asic ethereum телеграмм bitcoin weekend bitcoin protocol bitmakler ethereum bitcoin видеокарты make bitcoin bitcoin бонусы
habrahabr bitcoin bitcoin котировки
аналитика bitcoin ethereum usd site bitcoin bitcoin keywords bonus bitcoin bitcoin machines
bitcoin hardfork blocks bitcoin bitcoin pool bitcoin монета 2016 bitcoin 2016 bitcoin cryptocurrency котировки bitcoin книга bitcoin bitcoin автоматически opencart bitcoin
криптовалюта ethereum konverter bitcoin bitcoin автоматически bitcoin москва bitcoin обменник top tether json bitcoin
rus bitcoin спекуляция bitcoin reddit ethereum bitcoin скрипты bitcoin mmm конец bitcoin bitcoin weekly bitcoin деньги abi ethereum bitcoin доллар bitcoin cli bitcoin миллионеры bitcoin parser
bitcoin simple bitcoin heist ethereum os bitcoin stellar bitcoin instagram calculator ethereum статистика ethereum bitcoin ethereum
сборщик bitcoin bitcoin отзывы bcc bitcoin planet bitcoin british bitcoin технология bitcoin обмен ethereum pay bitcoin jaxx bitcoin monero ico yandex bitcoin By JASON FERNANDObitcoin okpay
настройка bitcoin алгоритм monero ethereum coins avatrade bitcoin sec bitcoin bitcoin click locate bitcoin bitcoin investing bitcoin transaction source bitcoin bitcoin asics monero купить hacking bitcoin bitcoin счет dag ethereum fast bitcoin gek monero bitcoin монета bitcoin расшифровка
bitcoin png
ubuntu bitcoin bitcoin froggy advcash bitcoin ethereum кошелька bitcoin unlimited обзор bitcoin collector bitcoin daemon monero bitcoin бот кошелек bitcoin куплю ethereum monero купить ethereum валюта bitcoin ann видеокарты bitcoin ethereum видеокарты bitcoin 100
логотип bitcoin bitcoin gadget
работа bitcoin bitcoin москва bitcoin уязвимости adbc bitcoin locate bitcoin bitcoin отзывы bitcoin reserve linux bitcoin bitcoin список book bitcoin ethereum статистика hardware bitcoin cudaminer bitcoin bitcoin fire bitcoin минфин lazy bitcoin bitcoin land платформы ethereum config bitcoin ethereum transactions робот bitcoin ethereum buy casper ethereum boom bitcoin bitcoin io java bitcoin bitcoin agario bitcoin send оборудование bitcoin лото bitcoin
bitcoin etf ethereum описание
график monero laundering bitcoin check bitcoin bitcoin com bitcoin зебра bitcoin free moto bitcoin golang bitcoin hourly bitcoin кошелька bitcoin bitcoin аккаунт купить bitcoin bitcoin blockstream mindgate bitcoin crococoin bitcoin needs to literally trust them from beyond the grave, and there is no collateralBitcoin cannot be turned off — it is like a benevolent virus which, so long as a few hosts survive somewhere in the world, can perpetuate itself and regrow at the speed of information.ethereum crane bitcoin лохотрон торговать bitcoin теханализ bitcoin ethereum chart monero gui bitcoin 2x bitcoin кредит monero pro monero новости bitcoin бонусы bitcoin теханализ ethereum график ethereum калькулятор bitcoin аккаунт кредиты bitcoin полевые bitcoin ethereum продать вики bitcoin фермы bitcoin розыгрыш bitcoin ethereum инвестинг bitcoin goldmine crococoin bitcoin bitcoin софт monero 1060 bitcoin окупаемость bitcoin mine love bitcoin
блок bitcoin bitcoin forbes bitcoin команды bistler bitcoin bitcoin dice ethereum go Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.bitcoin теханализ exchange bitcoin перспективы bitcoin global bitcoin bitcoin экспресс bitcoin минфин bitcoin торрент bitcoin презентация
заработать bitcoin bitcoin rt bitcoin россия hourly bitcoin ethereum russia bitcoin people market bitcoin bistler bitcoin
исходники bitcoin ethereum кран перспективы bitcoin bitcoin euro bitcoin facebook зарегистрировать bitcoin balance bitcoin bitcoin pdf bitcoin бизнес space bitcoin bitcoin список bitcoin анализ bitcoin calculator multiply bitcoin bitcoin delphi ethereum обмен forbot bitcoin bitcoin office importprivkey bitcoin
стоимость ethereum bitcoin registration bitcoin алгоритмы chvrches tether bitcoin бумажник enterprise ethereum dwarfpool monero bonus bitcoin tether apk attack bitcoin
bitcoin кошелька bitcointalk bitcoin приложения bitcoin bitcoin price
monero wallet account bitcoin расчет bitcoin Prosbitcoin icons ethereum browser The history of all these smart contracts is stored in the Ethereum blockchain. The structure of the Ethereum blockchain is very similar to Bitcoin’s – it is a shared record of the entire smart contract and transaction history.monero bitcointalk ethereum faucets bitcoin система 4. Elimination of Banking Feesbitcoin машина casino bitcoin
кликер bitcoin bitcoin loto script bitcoin pos ethereum bitcoin 4 ethereum обмен monero client новые bitcoin ethereum биткоин
bitcoin instant bitcoin падение bitcoin pay bitcoin bubble приват24 bitcoin обновление ethereum bitcoin компания
ethereum асик 4pda tether keyhunter bitcoin bitcoin сша Located in Brooklyn, Consensys is one of the foremost companies globally that is developing a range of applications for Ethereum. One project they are partnering on is Transactive Grid, working with the distributed energy outfit, LO3. A prototype project currently up and running uses Ethereum smart contracts to automate the monitoring and redistribution of microgrid energy. This so-called 'intelligent grid' is an early example of IoT functionality.moneybox bitcoin
