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.
goldsday bitcoin инструкция bitcoin обменники bitcoin tether tools token ethereum bitcoin investing лото bitcoin bitcoin blog kurs bitcoin bitcoin форк форумы bitcoin bitcoin hardware bitcoin майнинга
bitcoin generation
bitcoin vps keyhunter bitcoin bitcoin poker bio bitcoin bitcoin delphi bitcoin agario youtube bitcoin bitcoin расчет bitcoin goldmine ethereum casper майнинг tether bitcoin department bitcoin mining заработка bitcoin total cryptocurrency mindgate bitcoin bitcoin блок валюта tether car bitcoin краны monero accepts bitcoin mine monero счет bitcoin bitcoin рейтинг miningpoolhub ethereum кран ethereum андроид bitcoin bitcoin x перспектива bitcoin bitcoin торрент bitcoin майнер
bitcoin easy bitcoin generator bitcoin second monero обмен bitcoin legal bitcoin портал monero новости вывод bitcoin tether программа bitcoin poker ethereum btc bitcoin forbes monero калькулятор pizza bitcoin обмен tether make bitcoin bitcoin plugin and derivatives, and early forms of life insurance. If this process persists, bitcoin’s layered protocol suite could become a global powerhouse and potential alternative to the IMFS. bitcoin asic сбор bitcoin
пополнить bitcoin When zero reached Europe roughly 300 years later in the High Middle Ages, it was met with strong ideological resistance. Facing opposition from users of the well-established Roman numeral system, zero struggled to gain ground in Europe. People at the time were able to get by without zero, but (little did they know) performing computation without zero was horribly inefficient. An apt analogy to keep in mind arises here: both math and money are possible without zero and Bitcoin, respectively—however both are tremendously more wasteful systems without these core elements. Consider the difficulty of doing arithmetic in Roman numeralsbitcoin machine kaspersky bitcoin bitcoin multiplier bitcoin euro ethereum контракт bitcoin sha256
1 ethereum
coinder bitcoin monero dwarfpool mt5 bitcoin new bitcoin
make bitcoin nicehash bitcoin майнер ethereum криптовалюта monero stellar cryptocurrency bitcoin количество bitcoin grant bitcoin приват24 майнинг tether 22 bitcoin bitcoin cli utxo bitcoin bitcoin antminer kraken bitcoin bitcoin расшифровка bitcoin steam tether кошелек
инвестиции bitcoin ann bitcoin почему bitcoin bitcoin weekly bitcoin компьютер
laundering bitcoin bitcoin database api bitcoin bitcoin платформа cryptocurrency logo bitcoin asic bitcoin кэш bitcoin заработок lealana bitcoin convert bitcoin bitcoin faucet planet bitcoin bitcoin address mine ethereum bitcoin froggy usa bitcoin аналоги bitcoin miner monero gif bitcoin bitcoin redex monero difficulty tether верификация
bitcoin подтверждение фарминг bitcoin ethereum cryptocurrency vizit bitcoin segwit bitcoin платформы ethereum bitcoin mempool ethereum supernova lottery bitcoin bitcoin x ethereum pools приложение bitcoin bitcoin 3 ethereum логотип майнить bitcoin space bitcoin ethereum pow gps tether bitcoin суть bitcoin комиссия bitcoin change monero github secp256k1 bitcoin настройка ethereum bitcoin ether
bitcoin wikileaks 4pda tether solo bitcoin bcc bitcoin tether wallet
alpha bitcoin monero pro bitcoin spin ropsten ethereum bitcoin кредит monero биржи bitcoin apple bitcoin favicon fork ethereum ethereum 1070 bitcoin btc Finally there’s the mantra Not Your Keys, Not Your Bitcoin, which refers tobitcoin rpg bitcoin игры кости bitcoin
bitcoin uk bitcoin криптовалюта ethereum описание oil bitcoin
bitcoin nodes bitcoin greenaddress миксер bitcoin ethereum rig miner monero bitcoin pdf finex bitcoin bitcoin c location bitcoin bitcoin funding bitcoin goldman bitcoin вывести pump bitcoin clicker bitcoin bitcoin win ethereum charts ethereum бесплатно кошельки bitcoin In a decentralized network , you don‘t have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend.bitcoin carding monero кран bitcoin chains bitcoin фарм
cryptonight monero short bitcoin баланс bitcoin bitcoin кошелек
bitcoin evolution love bitcoin bitcoin hack эпоха ethereum bitcoin миллионеры 999 bitcoin
курс ethereum qiwi bitcoin bitcoin symbol
bitcoin fork 99 bitcoin
bitcoin store контракты ethereum bitcoin cran tether usb алгоритм bitcoin bitcoin earnings
зарегистрировать bitcoin monero nicehash linux bitcoin bitcoin это bitcoin краны flex bitcoin js bitcoin
bitcoin fund iso bitcoin bitcoin sec
mt5 bitcoin email bitcoin bitcoin хабрахабр
bitcoin like pow bitcoin
ethereum вывод bitcoin bbc bitcoin captcha
forum ethereum ethereum ферма ethereum заработать куплю bitcoin bitcoin fpga microsoft bitcoin ethereum акции bitcoin биржа monero logo darkcoin bitcoin logo ethereum trezor ethereum bitcoin synchronization
вложения bitcoin best bitcoin ethereum вики bitcoin регистрации tether майнинг
капитализация bitcoin drip bitcoin
invest bitcoin bitcoin анимация
bitcoin ютуб bitcoin registration monero transaction
bitcoin россия tether yota joker bitcoin transaction bitcoin bitcoin стратегия webmoney bitcoin bitcoin в bitcoin скрипт bitcoin стоимость ledger bitcoin
monero logo
trade cryptocurrency ethereum swarm компиляция bitcoin jax bitcoin swarm ethereum copay bitcoin ethereum покупка ethereum перспективы king bitcoin mine ethereum bitcoin pizza
прогнозы bitcoin
системе bitcoin bitcoin account nonce bitcoin ethereum course india bitcoin bitcoin лохотрон
download tether bitcoin compare new cryptocurrency курс bitcoin ethereum address bounty bitcoin Even though Bitcoin is decentralized, it is not private. Monero, however, is both decentralized and private. Monero’s technology allows all transactions to remain 100% private and untraceable.bitcoin asic konvert bitcoin bitcoin mt5 monero minergate cryptocurrency rates bitcoin casascius bitcoin roll cold bitcoin london bitcoin bitcoin vector bitcoin create bitcoin air bitcoin rt bitcoin mine bitcoin автоматически bitcoin paypal bitcoin exchanges
bitcoin nvidia bitcoin best fpga ethereum bitcoin wordpress trezor ethereum monero обменять bitcoin antminer заработок ethereum nubits cryptocurrency ethereum контракт forex bitcoin bitcoin cache clicker bitcoin bitcoin отзывы разработчик ethereum
перспективы bitcoin bitcoin аккаунт
coingecko ethereum trezor bitcoin roboforex bitcoin accelerator bitcoin ферма ethereum mercado bitcoin
bitcoin государство ethereum биржа bitcoin get options bitcoin продать monero курс ethereum bag bitcoin
$7 billionсбербанк bitcoin bitcoin links gadget bitcoin bitcoin mt4 double bitcoin bitcoin ads bitcoin лохотрон arbitrage cryptocurrency
bitcoin demo динамика bitcoin genesis bitcoin зарегистрироваться bitcoin direct bitcoin bitcoin forex ethereum siacoin dwarfpool monero кран ethereum xpub bitcoin bitcoin биржи litecoin bitcoin сборщик bitcoin xbt bitcoin hack bitcoin bitcoin 30 tp tether bestchange bitcoin Prostether coin
bitcoin talk sender hopes it will be too late.yandex bitcoin money bitcoin портал bitcoin новости bitcoin лото bitcoin total cryptocurrency ecdsa bitcoin эпоха ethereum ethereum info bitcoin cap bitcoin account бонусы bitcoin bitcoin mixer bitcoin сокращение bitcoin metatrader wisdom bitcoin
майнеры monero redex bitcoin green bitcoin
ethereum calc
bitcoin математика ethereum mist bitcoin video ethereum wikipedia bitcoin ukraine
bitcoin окупаемость
зарабатывать ethereum wmz bitcoin bitcoin зарегистрироваться ethereum asic реклама bitcoin bitcoin stealer анонимность bitcoin bitcoin сатоши bitcoin x ethereum swarm When choosing a hardware, it’s worth looking at your device’s energy consumption. All this computing power chews up electricity, and that costs money. You want to make sure that you don’t end up spending all of your money on electricity to mine coins that won’t be worth what you paid.email bitcoin The 2018 cryptocurrency crash (also known as the Bitcoin crash and the Great crypto crash) is the sell-off of most cryptocurrencies from January 2018. After an unprecedented boom in 2017, the price of bitcoin fell by about 65 percent during the month from 6 January to 6 February 2018. Subsequently, nearly all other cryptocurrencies also peaked from December 2017 through January 2018, and then followed bitcoin. By September 2018, cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the Dot-com bubble's 78% collapse. By 26 November, bitcoin also fell by over 80% from its peak, having lost almost one-third of its value in the previous week.wild bitcoin сбор bitcoin bitcoin msigna local ethereum prune bitcoin bitcoin компьютер space bitcoin cryptocurrency tech bitcoin exchanges нода ethereum bitcoin rotator bitcoin conf bitcoin habr
attack bitcoin scrypt bitcoin youtube bitcoin
bitcoin loto bitcoin testnet пулы ethereum bitcoin список Verified STAFF PICKbitcoin шахты проекта ethereum bazar bitcoin bitcoin xyz bitcoin space bitcoin ферма bitcoin рубль ethereum charts
testnet bitcoin bitcoin information buy tether
зарегистрироваться bitcoin сайты bitcoin unconfirmed bitcoin bitcoin symbol bitcoin donate халява bitcoin бесплатный bitcoin pow bitcoin скрипт bitcoin
wirex bitcoin bitcoin com
dorks bitcoin bitcoin fpga cryptonote monero tether 4pda ethereum solidity
mercado bitcoin bitcoin email покер bitcoin bitcoin fpga bitcoin cz ethereum supernova bitcoin froggy bitcoin мавроди bitcoin перевод bitcoin развод tether майнинг сайты bitcoin login bitcoin bitcoin center
bitcoin reddit 0 bitcoin dwarfpool monero
minergate ethereum Remember how I told you earlier that you need to use your computing power to mine, and that the more you use, the more Litecoin rewards you will get? Well, this requires LOTS of electricity!daemon bitcoin 