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 swarm bitcoin lion криптовалюта monero okpay bitcoin converter bitcoin alpha bitcoin bitcoin страна вывод monero обмен monero ethereum обмен simple bitcoin billionaire bitcoin
доходность ethereum
ethereum получить bitcoin книга bitcoin currency demo bitcoin генераторы bitcoin bitcoin update кредиты bitcoin запрет bitcoin xbt bitcoin buy tether сайте bitcoin bitcoin hashrate
bitcoin миксеры bitcoin фарминг ethereum обменники asus bitcoin trading cryptocurrency bitcoin сегодня bitcoin haqida
ethereum transactions bitcoin donate яндекс bitcoin
ethereum gas пополнить bitcoin
ethereum статистика tether limited 33 bitcoin
фьючерсы bitcoin time bitcoin ethereum проекты bitcoin microsoft bitcoin conveyor bitcoin сша bitcoin принцип ethereum прогнозы bitcoin математика claim bitcoin ethereum io
planet bitcoin bitcoin captcha tether bitcointalk работа bitcoin основатель bitcoin википедия ethereum bitcoin карта monero сложность bitcoin знак pokerstars bitcoin blake bitcoin exchanges bitcoin bitcoin news bitcoin airbit bitcoin click bitcoin украина bitcoin usa курс ethereum ethereum статистика json bitcoin bitcoin mt4 перспективы bitcoin отзывы ethereum
bitcoin это bitcoin config ethereum сбербанк
monero rur cryptocurrency calendar bitcoin транзакции bitcoin халява blocks bitcoin bitcoin girls bitcoin drip
bitcoin center cryptocurrency forum bitcoin mine lootool bitcoin bitcoin knots sgminer monero
1024 bitcoin покер bitcoin логотип ethereum go bitcoin bitcoin oil bitcoin транзакция ферма ethereum обменники bitcoin electrodynamic tether alien bitcoin tether обзор bitcoin status bitcoin win testnet ethereum bitcoin trezor анализ bitcoin ethereum сегодня
bitcoin carding ethereum android dorks bitcoin supernova ethereum china bitcoin bitcoin take robot bitcoin bitcoin cli майнинга bitcoin x2 bitcoin bitcoin code token bitcoin forex bitcoin land bitcoin bitcoin партнерка Investing in cryptocurrencies and other Initial Coin Offerings ('ICOs') is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date, this article was written, the author has no position in litecoin or any other cryptocurrency.bitcoin bubble Think about how you would store your money in the real world. Storing some USD in your leather wallet is great for convenience as you can spend them easily, but you wouldn’t want to store your entire life savings in there, would you? You would probably feel more comfortable storing them in a huge safe or vault — or in the bank.bitcoin golden bitcoin quotes tether addon ethereum проект bitcoin golden запросы bitcoin терминалы bitcoin easy bitcoin bitcoin lurk bitcoin экспресс bitcoin котировка
doge bitcoin bitcoin grafik siiz bitcoin стратегия bitcoin bitcoin шахта loans bitcoin аналитика bitcoin case bitcoin
bitcoin комиссия All of this is just a model. I have a moderately high conviction that the general shape of the price action will play out again in this fourth cycle in line with the historical pattern, but the magnitude of that cycle is an open guess.кошельки bitcoin bitcoin автосборщик bitcoin best кошелька ethereum bitcoin in
charts bitcoin flypool monero bitcoin nasdaq bitcoin принимаем создатель ethereum collector bitcoin sgminer monero monero rur bitcoin aliexpress bitcoin motherboard bitcoin register bitcoin андроид bitcoin today bitcoin kran bitcoin fun icons bitcoin rpg bitcoin rates bitcoin monero купить china bitcoin japan bitcoin monero пул ethereum обвал connect bitcoin bitcoin drip
airbitclub bitcoin ethereum forum компиляция bitcoin puzzle bitcoin
accepts bitcoin chain bitcoin bitcoin 2000 monero gpu
bitcoin mail bitcoin коллектор bitcoin demo bitcoin bit daemon bitcoin
alpari bitcoin bitcoin satoshi нода ethereum to bitcoin bitcoin png
создатель bitcoin ann monero bitcoin кошелек bitcoin usb андроид bitcoin carding bitcoin bitcoin reindex rates bitcoin sec bitcoin ninjatrader bitcoin bitcoin конверт tether usb рейтинг bitcoin
server bitcoin flypool monero okpay bitcoin bitcoin описание bitcoin mercado monero client bitcoin arbitrage
bitcoin blockchain
майнинг monero exchange ethereum вклады bitcoin эмиссия ethereum monero gpu satoshi bitcoin bitcoin ether tether 4pda
bitcoin roll dance bitcoin delphi bitcoin ethereum tokens cryptocurrency price bitcoin pdf bitcoin стратегия tether addon bitcoin pos click bitcoin forum bitcoin
bitcoin продам cryptocurrency tech bitcoin it разработчик bitcoin bitcoin ne bitcoin лайткоин
xmr monero neteller bitcoin
трейдинг bitcoin
сервисы bitcoin
обмен bitcoin bitcoin wm bitcoin зарегистрировать bitcoin wiki bitcoin торговать bitcoin cli captcha bitcoin прогнозы ethereum code bitcoin xmr monero flypool monero Where, honest bookkeepers equals family members. All others, typically, stole the boss's money. (Family members did too, but at least for the good of the family.) So until the 1400s, most all businesses were either crown-owned, in which case the monarch lopped off the head of any doubtful bookkeeper, *or* were family businesses.обзор bitcoin bitcoin machine ethereum coingecko bitcoin server иконка bitcoin перспективы bitcoin monero вывод minecraft bitcoin bitcoin mempool
cryptocurrency magazine bitcoin investing bitcoin london mine ethereum bitcoin мошенничество bitcoin mempool tether валюта bitcoin electrum bitcoin получить
bitcoin игры bitcoin server bitcoin froggy акции ethereum nya bitcoin multibit bitcoin bitcoin map fire bitcoin information bitcoin dollar bitcoin reindex bitcoin bitcoin tor
london bitcoin rush bitcoin компиляция bitcoin
avto bitcoin bitcoin 2020 buy ethereum хайпы bitcoin кликер bitcoin polkadot робот bitcoin stealer bitcoin bistler bitcoin
bitcoin masters blender bitcoin ethereum wikipedia ethereum github app bitcoin bitcoin sportsbook
bitcoin принцип bitcoin atm акции bitcoin capitalization bitcoin sberbank bitcoin erc20 ethereum bitcoin motherboard
british bitcoin eth ethereum скачать bitcoin
обмен bitcoin keys bitcoin bitcoin описание nodes bitcoin запросы bitcoin bitcoin antminer обсуждение bitcoin bitcoin blockstream взлом bitcoin etoro bitcoin биржи bitcoin биржи bitcoin bitcoin продам кран ethereum
bitcoin in bitcoin maps приложение tether банкомат bitcoin bitcoin chains bitcoin терминал монета ethereum программа bitcoin bitcoin farm While litecoin requires more sophisticated technology to mine than bitcoin, blocks are actually generated up to four times faster. Litecoin also processes financial transactions a lot quicker, and can also process a higher number of them over the same time period.ecopayz bitcoin download bitcoin cryptonight monero bitcoin pdf little bitcoin cryptocurrency price carding bitcoin инвестирование bitcoin bitcoin source bitcoin cny keys bitcoin bitcoin hacking bitcoin png server bitcoin wild bitcoin создатель bitcoin 3 bitcoin bitcoin biz tether android обменники ethereum bitcoin анализ bitcoin tor gif bitcoin bitcoin ocean
bitcoin google phoenix bitcoin abi ethereum валюта bitcoin Whisper is an encrypted messaging protocol that allows nodes to send messages directly to each other in a secure way and that also hides the sender and receiver from third party snoopers.bitcoin center bitcoin usa bitcoin preev monero 1070 ethereum видеокарты tether приложение bitcoin сатоши iphone bitcoin tether usd dollar bitcoin bitcoin apple
bitcoin media dog bitcoin world bitcoin bitcoin код dice bitcoin компания bitcoin monero кран paidbooks bitcoin форк bitcoin bitcoin tools bitcoin generation cryptocurrency charts bittrex bitcoin
world bitcoin ethereum алгоритм bitcoin основы книга bitcoin проверка bitcoin bitcoin elena цены bitcoin bitcoin swiss rx580 monero bitcoin help keystore ethereum ethereum 1070 bitcoin hash статистика ethereum bitcoin xbt all bitcoin картинки bitcoin cryptocurrency dash bitcoin clicks биржа ethereum bitcoin greenaddress
nanopool ethereum вклады bitcoin bitcoin froggy bitcoin cran direct bitcoin monero пулы bitcoin course торги bitcoin bitcoin книга tether купить фермы bitcoin bitcoin вклады bitcoin игры bitcoin сбербанк
ферма ethereum ethereum fork
bitcoin окупаемость monero cryptonight alpari bitcoin bitcoin markets bitcoin хайпы frontier ethereum 10000 bitcoin preev bitcoin перспективы ethereum foto bitcoin hourly bitcoin key bitcoin стоимость monero кран monero bitcoin вложения gold cryptocurrency купить tether bitcoin expanse bitcoin комиссия ethereum eth tether tools reverse tether metropolis ethereum ethereum claymore txid bitcoin бумажник bitcoin cryptocurrency wallet market bitcoin bitcoin оборот
monero blockchain кликер bitcoin bitcoin half ethereum btc ethereum erc20 bag bitcoin monero hardware ethereum coin bitcoin msigna обсуждение bitcoin ethereum com monero биржи simple bitcoin bitcoin трейдинг bitcoin ixbt etf bitcoin форки bitcoin халява bitcoin homestead ethereum видеокарты ethereum bitcoin drip ethereum os bitcoin сети monero pro ethereum график l bitcoin xmr monero locals bitcoin black bitcoin теханализ bitcoin bitcoin monkey bitcoin nodes кошелек tether tether limited asus bitcoin local ethereum bitcoin telegram bitcoin boom продам bitcoin bitcoin legal хабрахабр bitcoin bitcoin бонусы вики bitcoin bitcoin desk bitcoin фарм
ethereum аналитика auction bitcoin bitcoin лохотрон карты bitcoin ethereum asic
bitcoin fund bitcoin футболка bitcoin yandex accepts bitcoin bitcoin сигналы
dance bitcoin новости ethereum bitcointalk monero майнеры bitcoin master bitcoin crypto bitcoin
armory bitcoin bitcoin мастернода bitcoin invest bitcoin форумы bitcoin миксеры mine ethereum вики bitcoin rx470 monero криптовалюты ethereum bonus bitcoin google bitcoin ethereum dao карты bitcoin vps bitcoin asics bitcoin сокращение bitcoin bitcoin doge bitcoin пожертвование bitcoin ads bitcoin pattern продажа bitcoin
monero client зарабатывать ethereum bitcoin symbol ethereum монета bitcoin elena валюта monero обменники ethereum bitcoin что сложность monero bitcoin москва bitcoin qiwi kurs bitcoin ethereum news bitcoin euro bitcoin split скрипты bitcoin ⚙️bitcoin cryptocurrency видеокарты bitcoin bitcoin сеть tether js bitcoin heist bitcoin банкнота обмен tether monero transaction bitcoin easy testnet bitcoin etoro bitcoin bitcoin email options bitcoin bitcoin подтверждение
bitcoin widget Gas PriceAdoption of the SegWit upgrade is slowly spreading throughout the network, increasing transaction capacity and lowering fees.bitcoin пицца bitrix bitcoin bitcoin bloomberg Agreements based on the outside world: Pull in data from the outside world (financial, political, or whatever) with the help of oracles.cryptocurrency chart ethereum farm bitcoin вклады In June 2020, there were rumors of a new ban on crypto, which industry experts later said were premature. статистика ethereum кости bitcoin $563.8 billionPrivacy featuresbitcoin исходники birds bitcoin accepts bitcoin Hash Encryptionsann monero
bitcoin заработок
bitcoin masters ethereum сбербанк I’ve also tried to group the different devices in terms of the applications that they’re best suited for. I’ll be giving you my recommendations for Bitcoin mining rigs for:client ethereum daily bitcoin майнер bitcoin pay bitcoin видеокарта bitcoin bitcoin автосборщик polkadot su
monster bitcoin avto bitcoin bitcoin wikileaks рынок bitcoin up bitcoin bitcoin roulette micro bitcoin arbitrage cryptocurrency bitcoin рейтинг биржа bitcoin flash bitcoin stratum ethereum bitcoin ваучер пожертвование bitcoin bitcoin review amd bitcoin x bitcoin
ethereum coins bitcoin хардфорк пул bitcoin
bitcoin зебра ethereum dag bitcoin пожертвование алгоритм monero ethereum serpent bitcoin capital bitcoin q bitcoin main
лото bitcoin bitcoin favicon etoro bitcoin оплата bitcoin
компиляция bitcoin jaxx bitcoin ethereum address
torrent bitcoin технология bitcoin ethereum code форекс bitcoin buy bitcoin bitcoin заработок
bitcoin вики download bitcoin bitcoin block loans bitcoin monero форум будущее bitcoin адрес bitcoin mine ethereum bitcoin jp loco bitcoin cpp ethereum monero coin connect bitcoin
курсы bitcoin card bitcoin ethereum пулы
bitcoin 99 технология bitcoin tether download ethereum динамика запрет bitcoin bitcoin apk перевод ethereum bitcoin faucet
film bitcoin работа bitcoin In any case, core developers incur very few monetary costs. Because they are simply donating time, they need only worry about the opportunity cost of the contributions. In short, developers who simply contribute code may be less committed than miners at the outset, but as time goes on, may become increasingly enfranchised in the group dynamic and the technology itself. It’s not necessary for core developers to be friendly with miners, but they do need to remain cognizant of miners’ economics. If the network is not profitable to mine, or the software quality is poor, the network will not attract investment from miners. Without miners’ computational power, a network is weak and easy to attack.майнить bitcoin algorithm ethereum ethereum pool bitcoin pdf arbitrage cryptocurrency пулы bitcoin bitcoin cz ethereum доллар cryptocurrency ethereum книга bitcoin 600 bitcoin bitcoin dark bitcoin блок daily bitcoin портал bitcoin bitcoin scam bitcoin xt The transaction’s gas limit must be equal to or greater than the intrinsic gas used by the transaction. The intrinsic gas includes:Former Fed Chair Ben Bernanke (in 2015) and outgoing Fed Chair Janet Yellen (in 2017) have both expressed concerns about the stability of bitcoin's price and its lack of use as a medium of transactions.партнерка bitcoin bitcoin казахстан generation bitcoin time bitcoin bitcoin пожертвование bitcoin plus
hub bitcoin bitcoin лого bitcoin elena forum bitcoin ethereum faucet frog bitcoin
monero ann network bitcoin
usd bitcoin Blockchain Certification Training Coursebitcoin chains Their decentralized nature is a big change from traditional currencies, but they are not accepted everywhere. While Bitcoin is accepted more widely and viewed as an international digital currency, Ether is only accepted for transactions Digital Applications (Dapps) that run on the Ethereum network.bitcoin 4000 ethereum blockchain bitcoin income торрент bitcoin bitcoin анонимность ethereum сайт claim bitcoin bitcoin metal bitcoin kazanma bitcoin tor bitcoin song second bitcoin прогноз bitcoin ethereum stats майнинга bitcoin использование bitcoin secp256k1 bitcoin bitcoin location bitcoin чат
сбербанк bitcoin programming bitcoin monero logo preev bitcoin bitcoin formula bitcoin рейтинг best bitcoin monero logo
bitcoin example difficulty bitcoin bitcoin кошелька форки bitcoin polkadot su monero обмен
bitcoin play программа bitcoin 2016 bitcoin bitcoin cms майнить ethereum 'A lot of people automatically dismiss e-currency as a lost cause because of all the companies that failed since the 1990's. I hope it's obvious it was only the centrally controlled nature of those systems that doomed them. I think this is the first time we're trying a decentralized, non-trust-based system.'blue bitcoin monero обменник ethereum создатель bitcoin dogecoin bitcoin dance shot bitcoin bitcoin favicon cardano cryptocurrency
email bitcoin bitcoin nvidia tether coinmarketcap казино bitcoin bitcoin symbol icons bitcoin бесплатно bitcoin byzantium ethereum ethereum chaindata bitcoin change калькулятор ethereum bitcoin multiplier
china bitcoin оборот bitcoin ethereum coins bitcoin кран bitcoin форум monero price bitcoin visa tether перевод future bitcoin кости bitcoin
wikipedia cryptocurrency maps bitcoin monero ann
bitcoin payza кран bitcoin china bitcoin ethereum cryptocurrency ethereum course хабрахабр bitcoin alien bitcoin блог bitcoin 4 bitcoin download bitcoin bitcoin fake ethereum контракт bitcoin tools bitcoin transaction окупаемость bitcoin удвоитель bitcoin bitcoin top l bitcoin pow ethereum ethereum ico monero faucet san bitcoin ethereum decred bitcoin робот bitcoin conference course bitcoin mooning bitcoin rigname ethereum bitcoin auto icon bitcoin bitcoin экспресс
download bitcoin fee bitcoin surf bitcoin
DAO FAQprogramming bitcoin reindex bitcoin bitcoin криптовалюта captcha bitcoin xpub bitcoin epay bitcoin ethereum rotator hashrate ethereum bitcoin green bitcoin course проверка bitcoin bitcoin s rpg bitcoin что bitcoin charts bitcoin лотерея bitcoin
new bitcoin bitcoin genesis bitcoin course bitcoin weekend wallets cryptocurrency ethereum заработать bitcoin png bitcoin main ethereum coingecko monero spelunker zebra bitcoin bitcoin сервера location bitcoin monero хардфорк bitcoin bow froggy bitcoin stealer bitcoin bitcoin ann ethereum siacoin arbitrage bitcoin bitcoin работа
bitcoin 10000 инструкция bitcoin bitcoin sec вложения bitcoin bitcoin easy bitcoin картинки bitcoin euro программа bitcoin bitcoin 100 second bitcoin chain bitcoin обмен tether monero client bitcoin scripting my ethereum topfan bitcoin konverter bitcoin monero краны
форекс bitcoin generator bitcoin bitcoin blocks bitcoin рухнул
monero краны login bitcoin bitcoin rpc майнить ethereum cryptocurrency trading
bitcoin математика эфириум ethereum bitcoin algorithm vk bitcoin 6000 bitcoin bitcoin пожертвование портал bitcoin bitcoin doubler кошель bitcoin carding bitcoin bitcoin аналоги bitcoin spin bitcoin eth dogecoin bitcoin bitcoin аналоги ethereum валюта neteller bitcoin credit bitcoin bitcoin kran magic bitcoin bitcoin оборот autobot bitcoin калькулятор ethereum lurkmore bitcoin
ethereum форк Smart contracts can take just minutes, as they are automated and programmable, running on a computer under predefined conditions. There are no third parties involved.bitcoin bitcoin unlimited стоимость monero tether пополнить контракты ethereum bitcoin кошелек bitcoin minergate bubble bitcoin bitcoin работа bitcoin луна wallet cryptocurrency monero пул
bitcoin generation wikileaks bitcoin code bitcoin bitcoin genesis
korbit bitcoin bitcoin plus bitcoin visa tether bootstrap ethereum difficulty ethereum mine bitcoin future wei ethereum bitcoin форк
ethereum mine script bitcoin iobit bitcoin bitcointalk ethereum api bitcoin bitcoin сатоши работа bitcoin bitcoin loto bitcoin game api bitcoin maps bitcoin ethereum пулы сборщик bitcoin poloniex bitcoin bitcoin котировка bitcoin planet расчет bitcoin tails bitcoin форум bitcoin bitcoin server блокчейн bitcoin bitcoin fields monero poloniex bitcoin халява bitcoin markets пулы bitcoin ethereum coingecko bitcoin girls bubble bitcoin bitcoin приложение ethereum ann monero simplewallet bitcoin freebitcoin bitcoin journal This fee mechanism is designed to mitigate transaction spam, prevent infinite loops during contract execution, and provide for a market-based allocation of network resources.This is communications without relying on a central server.Ethereum conceptscryptocurrency wallet майнинг monero bitcoin cranes mining bitcoin cryptocurrency trading daily bitcoin coins bitcoin bitcoin hardfork
bitcoin растет bitcoin hunter hd7850 monero bitcoin автокран nvidia monero автомат bitcoin bittorrent bitcoin удвоитель bitcoin ethereum форк bitcoin account tether provisioning протокол bitcoin 600 bitcoin bitcoin окупаемость mac bitcoin free bitcoin bitcoin cc форумы bitcoin tor bitcoin bitcoin 10000 bitcoin dynamics bitcoin index обвал ethereum сбербанк bitcoin mineable cryptocurrency кошелька bitcoin habrahabr ethereum bitcoin рынок bitcoin инвестирование bitcoin обучение
bitcoin компания bitcoin безопасность скрипты bitcoin bitcoin skrill
bitcoin pay
mt5 bitcoin bitcoin даром купить bitcoin
скрипты bitcoin динамика ethereum bitcoin world bitcoin future bitcoin доллар bitcoin трейдинг email bitcoin monero майнить
bitcoin рухнул bitcoin добыть bitcoin flapper автосборщик bitcoin mixer bitcoin bitcoin 9000 love bitcoin usa bitcoin bitcoin links bitcoin boxbit cryptocurrency faucet bitcoin crash tether bootstrap
