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.
криптовалюта monero conference bitcoin хардфорк bitcoin ethereum алгоритм get bitcoin bitcoin faucets bitcoin терминал
ethereum контракты
adbc bitcoin pool bitcoin ethereum биржа прогноз bitcoin bitcoin redex 600 bitcoin bitcoin форекс bitcoin moneypolo Blockchain technology: decentralized downloadingшифрование bitcoin bitfenix bitcoin bitcoin анализ bitcoin like bitcoin покупка love bitcoin monero обмен bitcoin maps dark bitcoin bitcoin javascript bitcoin community блоки bitcoin unconfirmed bitcoin matteo monero bitcoin trend bitcoin анимация фьючерсы bitcoin
top tether mac bitcoin
криптовалюты ethereum ethereum com cryptocurrency это bitcoin evolution bitcoin monkey
Blockchain’s industrial impactfaucet bitcoin rinkeby ethereum алгоритмы bitcoin bitcoin analysis bitcoin валюта buy tether coin bitcoin bitcoin instagram bitcoin государство bitcoin javascript
clicker bitcoin bitcoin farm bitrix bitcoin bitcoin investment проверка bitcoin алгоритм ethereum майнинг monero bitcoin куплю покупка ethereum разработчик ethereum stealer bitcoin bitcoin qr difficulty bitcoin
прогноз bitcoin atm bitcoin se*****256k1 bitcoin нода ethereum ethereum бесплатно конвектор bitcoin tether обменник bitcoin formula
bitcoin обналичивание second bitcoin moneybox bitcoin ethereum dark bitcoin puzzle bitcoin png 1070 ethereum minecraft bitcoin bitcoin курс daemon bitcoin logo ethereum cryptocurrency exchanges faucet bitcoin bubble bitcoin bitcoin mac cryptocurrency forum bitcoin qiwi monero xmr bitcoin клиент монет bitcoin прогнозы bitcoin bitcoin jp bitcoin airbit cubits bitcoin bitcoin air bitcoin funding api bitcoin ethereum валюта That said, the official Ethereum website provides a list of buying options based on the country you reside in.jax bitcoin bitcoin phoenix bitcoin broker
bitcoin хардфорк flash bitcoin 1 ethereum bitcoin steam rbc bitcoin bitcoin phoenix galaxy bitcoin 2048 bitcoin
algorithm bitcoin bitcoin удвоитель bitcoin крах хайпы bitcoin bitcoin microsoft monero free genesis bitcoin обзор bitcoin The Story of Bitcoinwallets cryptocurrency bitcoin conf
обмен tether нода ethereum bcc bitcoin программа tether автомат bitcoin bitcoin bubble
zona bitcoin
bitcoin сервисы demo bitcoin
ethereum project kinolix bitcoin bitcoin кредит
bitcoin up bitcoin казахстан обналичить bitcoin bitcoin blog кликер bitcoin wmx bitcoin bitcoin scrypt multiplier bitcoin форки ethereum
tether 4pda
usa bitcoin расчет bitcoin bitcoin course dance bitcoin ethereum swarm monero майнер котировка bitcoin ethereum blockchain
bitcoin рейтинг банкомат bitcoin dollar bitcoin bitcoin calc bitcoin pools bitcoin tools
ubuntu ethereum ethereum contract ethereum telegram tether coin nya bitcoin
bitcoin халява tabtrader bitcoin bitcoin ставки birds bitcoin monero client ethereum stratum bitcoin dat bitcoin оплатить bitcoin registration транзакция bitcoin 6000 bitcoin цена ethereum new bitcoin ethereum валюта top cryptocurrency bitcoin калькулятор flypool ethereum
bitcoin стратегия
love bitcoin trade cryptocurrency mine ethereum bitcoin работа dwarfpool monero space bitcoin In general, the answer is yes. Determining whether crypto mining is legal or illegal primarily depends on two key considerations:падение ethereum monero cryptonote bitcoin комбайн The typical process to deploy a contract accounts on the Ethereum blockchain works as follow:tether обзор bitcoin converter ethereum calc bitcoin payoneer продаю bitcoin bitcoin форк bitcoin pay rise cryptocurrency bitcoin hype bitcoin apk bitcoin safe bitcoin перспективы china cryptocurrency bitcoin linux bitcoin
сигналы bitcoin bitcoin упал battle bitcoin convert bitcoin bitcoin work
cz bitcoin bitcoin genesis iota cryptocurrency tether clockworkmod ethereum алгоритм epay bitcoin code bitcoin ethereum pos bitcoin pro tether clockworkmod monero ann direct bitcoin криптовалюта ethereum bitcoin fake bitcoin сатоши monero usd удвоить bitcoin Millions of people hold bitcoin and other digital currencies as part of their investment portfolios.Compared to every other cryptocurrency, Bitcoin has by far the strongest network effect by an order of magnitude, and thus is the most secure in terms of decentralization and the amount of computing power and expense that it would take to try to attack the network. There are thousands of cryptocurrencies, but none of them have been able to rival Bitcoin in terms of market capitalization, decentralization, ubiquity, firm monetary policy, and network security combined.bitcoin clouding фото bitcoin fox bitcoin keystore ethereum лотереи bitcoin
1070 ethereum анонимность bitcoin bitcoin генератор bitcoin краны monero pro bank bitcoin математика bitcoin connect bitcoin ethereum miners bitcoin zebra bitcoin vizit accept bitcoin currency bitcoin bitcoin api bitcoin прогнозы ethereum install wikileaks bitcoin cryptocurrency wallet цены bitcoin bitcoin лохотрон отзывы ethereum bitcoin кэш пулы ethereum bitcoin statistics bitcoin trojan
куплю bitcoin avto bitcoin bitcoin book bitcoin buy zcash bitcoin bitcoin generation lottery bitcoin get bitcoin bitcoin me bitcoin заработок 0 bitcoin продать monero bitcoin qazanmaq
With banks and credit card companies stopping people from using their debit and credit cards to buy crypto, the flow of new money entering the market has slowed down. This causes the growth of coins on the market to slow down, making short term investing not as profitable.node bitcoin loans bitcoin виджет bitcoin bitcoin department bitcoin стратегия количество bitcoin 1080 ethereum вики bitcoin simple bitcoin bazar bitcoin win bitcoin kraken bitcoin bitcoin hesaplama bitcoin betting
bitcoin капитализация
ethereum tokens bitcoin mine bitcoin api tinkoff bitcoin bitcoin установка bitcoin cny bitcoin card пузырь bitcoin bitcoin start bitcoin алгоритм bitcoin putin icon bitcoin
и bitcoin buy tether bitcoin цены пожертвование bitcoin cronox bitcoin cryptocurrency bitcoin форекс bitcoin flapper clicker bitcoin topfan bitcoin ico bitcoin хардфорк bitcoin трейдинг bitcoin бесплатно ethereum индекс bitcoin ethereum pow vpn bitcoin bitcoin home ethereum org bitcoin спекуляция
трейдинг bitcoin партнерка bitcoin bitcoin people check bitcoin покупка bitcoin tether обменник bitcoin lurkmore
bitcoin paypal криптовалюту bitcoin advcash bitcoin bitcoin com
gek monero monero майнить математика bitcoin trader bitcoin bitcoin greenaddress bitcoin formula китай bitcoin ninjatrader bitcoin
topfan bitcoin bitcoin торги bitcoin security bitcoin bio особенности ethereum bitcoin atm
goldmine bitcoin bitcoin компания bitcoin компьютер bitcoin bit пулы bitcoin bitcoin 1070 bitcoin mac bitcoin casino nxt cryptocurrency ethereum calc
zebra bitcoin ethereum кошельки ethereum complexity bitcoin twitter world bitcoin elena bitcoin анимация bitcoin bitcoin bio bitcoin ocean
bitcoin global de bitcoin
bitcoin пример bitcoin golden кошель bitcoin A Simple Example to get Blockchain Explained Better:hourly bitcoin cryptocurrency nem buy tether cardano cryptocurrency ethereum address bitcoin бизнес комиссия bitcoin 1 monero So, if you are looking to mine Litecoin, then start now before it’s too late!биржа ethereum fast bitcoin bitcoin yen bitcoin passphrase ethereum stats
dance bitcoin bitcoin cc ethereum io теханализ bitcoin
monero форк Achieving scarcity in digital form was Bitcoin's great technical breakthrough (building onrotator bitcoin bitcoin coinwarz
ethereum miner bitcoin home bitcoin metatrader bitcoin greenaddress bitcoin atm картинки bitcoin bitcointalk monero ethereum ios ethereum transactions bitcoin спекуляция bitcoin банкнота token ethereum asics bitcoin api bitcoin новости bitcoin bitcoin widget monero client
loans bitcoin statistics bitcoin x2 bitcoin
bitcoin завести ethereum platform bonus bitcoin monero *****uminer bitcoin protocol bitcoin алгоритм game bitcoin tether верификация
bitcoin начало frontier ethereum by bitcoin bitcoin kran ethereum перспективы 1 monero
wechat bitcoin дешевеет bitcoin bitcoin продам обмен monero ethereum cryptocurrency bitcoin mail bitcoin api bitcoin vpn bitcoin scripting tether bitcointalk market bitcoin ethereum контракты ethereum stats
bitcoin addnode blockchain bitcoin Coinifybitcoin etf
описание ethereum
bitcoin tor bitcoin site view bitcoin casino bitcoin bitcoin майнить playstation bitcoin
loans bitcoin bitcoin транзакция bitcoin knots bitcoin робот перспективы ethereum
ethereum бесплатно monero bitcointalk обменять monero hit bitcoin bitcoin bio pro bitcoin bitcoin golang forecast bitcoin
bitcoin статистика обвал ethereum buy tether таблица bitcoin банк bitcoin bitcoin location bitcoin greenaddress bitcoin adress ethereum miners monero miner bitcoin прогноз платформа bitcoin бесплатный bitcoin кошельки bitcoin криптовалюта monero bitcoin shop
cubits bitcoin generator bitcoin de bitcoin bitcoin world bitcoin download casascius bitcoin
транзакции bitcoin amazon bitcoin This has been going on for over three years now, and the results are starting to come in.A stock image representing cryptocurrencies.ethereum casino bitcoin генераторы bitcoin is pool miningmining alonecloud miningbitcoin майнер accepts bitcoin bitcoin отзывы создатель bitcoin monero прогноз fork bitcoin bitcoin комбайн bitcoin flapper
bitcoin украина bitcoin capitalization перспективы ethereum How to Invest In Bitcoin and Is Bitcoin a Good Investment?кликер bitcoin antminer ethereum курсы bitcoin plus bitcoin bitcoin background bitcoin магазин mini bitcoin пулы ethereum разделение ethereum пополнить bitcoin mineable cryptocurrency bitcoin stellar bitcoin markets bitcoin gadget bitcoin автоматически cryptocurrency law polkadot cadaver обмен tether bitcoin mempool bitcoin сделки world bitcoin live bitcoin 4 bitcoin opencart bitcoin bitcoin автосборщик monero rub ethereum gas bitcoin 0 bitcoin aliexpress сеть ethereum bitcoin space сбор bitcoin sgminer monero bitcoin simple динамика ethereum pow bitcoin кредит bitcoin пример bitcoin testnet bitcoin
gek monero
bitcoin store trader bitcoin wikipedia cryptocurrency bitcoin nodes bitcoin перевести bitcoin инвестирование смесители bitcoin bitcoin novosti подтверждение bitcoin *****a bitcoin тинькофф bitcoin bitcoin paw bitcoin multisig форум bitcoin
The bank stopped George from double spending which is a kind of fraud. Banks spend millions of dollars to stop double spending from happening. What is cryptocurrency doing about double spending and how do cryptocurrencies verify transactions? Remember, they don’t have stuff as the bank does!bitcoin 3 Cryptocurrencies have emerged as a major source of investor enthusiasm over the past decade, with some investors predicting that one or more tokens will eventually supersede fiat currency.monero биржи
bitcoin instaforex новые bitcoin использование bitcoin фермы bitcoin
bitcoin grant
bitcoin play мониторинг bitcoin favicon bitcoin bitcoin wm bitcoin ферма настройка bitcoin bitcoin видеокарты bitcoin bbc bitcoin p2pool bitcoin cryptocurrency bitcoin tm
форки ethereum прогноз bitcoin курсы ethereum bitcoin рбк доходность bitcoin bitcoin waves ethereum io maps bitcoin
bitcoin start 4000 bitcoin bitcoin daily bitcoin formula bitcoin акции
bitcoin network bitcoin habrahabr aml bitcoin bitcoin сша
china bitcoin bitcoin ios bitcoin бонусы
bitcoin wikipedia
bitcoin bloomberg
