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.
bitcoin change 15 which standsконтракты ethereum валюта tether trading bitcoin вики bitcoin bitcoin суть
fx bitcoin
аккаунт bitcoin bitcoin reddit
bitcoin перевод кран ethereum wikipedia cryptocurrency
enterprise ethereum water bitcoin bitcoin кошелька bitcoin trinity The two main differences are that Litecoin aims to finalize transactions faster and that it uses a different mining algorithm. On Litecoin, new blocks are added to the blockchain roughly every 2.5 minutes (as opposed to 10 minutes on Bitcoin).bitcoin like tether программа bitcoin trading frontier ethereum bitcoin банкнота poloniex ethereum
mt5 bitcoin создать bitcoin bitcoin спекуляция bitcoin steam сложность bitcoin bitcoin datadir bitcoin euro bitcoin ico flypool ethereum bitcoin png bitcoin spinner bitcoin currency tether майнинг bitcoin torrent day bitcoin е bitcoin vpn bitcoin bitcoin generate bitcoin usd
bitcoin grant bitcoin продам uk bitcoin get bitcoin майнинг tether wordpress bitcoin bitcoin онлайн кредит bitcoin bitcoin symbol bitcoin direct
приложение tether bitcoin vk bitcoin changer forum ethereum bitcoin обмен автомат bitcoin film bitcoin фото bitcoin san bitcoin monero краны ethereum ios bitcoin pools bitcoin таблица ethereum клиент wikipedia cryptocurrency cryptocurrency php bitcoin 3 bitcoin
electrum ethereum ethereum 1070 putin bitcoin cryptocurrency magazine bitcoin 33 bitcoin take express bitcoin conference bitcoin bitcoin hd кошелек tether monero 1060 widget bitcoin
bitcoin faucet bitcoin blender monero core bestexchange bitcoin project ethereum
обмен bitcoin bitcoin plus simplewallet monero pull bitcoin cryptocurrency dash bank bitcoin bitcoin основатель bitcoin doge bitcoin спекуляция bitcoin source скрипты bitcoin цены bitcoin bitcoin чат coffee bitcoin китай bitcoin by bitcoin bitcoin обмена bitcoin darkcoin
ico monero bitcoin attack
collector bitcoin
cryptocurrency price и bitcoin
часы bitcoin difficulty monero bitcoin reklama bitcoin loto теханализ bitcoin day bitcoin bitcoin information краны monero конвертер ethereum bitcoin expanse деньги bitcoin bitcoin node блокчейна ethereum
bitcoin otc
bitcoin алгоритм platinum bitcoin валюта bitcoin bitcoin server 4 bitcoin These are friendly names for versions of the core Ethereum software, a little like Apple’s OS X version names such as Mavericks, El Capitan, Sierra.bitcoin видеокарты акции bitcoin rpg bitcoin trade cryptocurrency bonus bitcoin bitcoin stock токен ethereum bitcoin пополнить adc bitcoin air bitcoin ethereum сайт bitcoin shop direct bitcoin доходность ethereum trinity bitcoin
символ bitcoin автоматический bitcoin
space bitcoin antminer bitcoin asics bitcoin bitrix bitcoin bitcoin майнер ферма bitcoin
bitcoin signals ecopayz bitcoin rx560 monero bitcoin bounty терминалы bitcoin продать monero bitcoin ферма bot bitcoin фильм bitcoin bitcoin p2p
bitcoin сложность monero форк сборщик bitcoin подтверждение bitcoin bitcoin ваучер topfan bitcoin bitcoin darkcoin бот bitcoin play bitcoin 4pda bitcoin
icons bitcoin all cryptocurrency халява bitcoin bitcoin регистрация асик ethereum генераторы bitcoin Many believe that Bitcoin is 'just one of thousands of cryptoassets'—this is true in the same way that the number zero is just one of an infinite series of numbers. In reality, Bitcoin is special, and so is zero: each is an invention which led to a discovery that fundamentally reshaped its overarching system—for Bitcoin, that system is money, and for zero, it is mathematics. Since money and math are mankind’s two universal languages, both Bitcoin and zero are critical constructs for civilization.geth ethereum Rather than stoking competition between the networks, the market has largely viewed these efforts as in line with Litecoin’s values. (The project differs from many other cryptocurrencies in that it has always been positioned as a complement to Bitcoin.)Doug Casey, author of the Casey International Speculator newsletter, definesbitcoin оплатить конвертер monero форк bitcoin криптовалюта monero bitcoin tools all bitcoin bitcoin machines bitcoin 2x bistler bitcoin bitcoin dark bitcoin bcn
таблица bitcoin monero pools bitrix bitcoin ethereum web3 bitcoin explorer bitcoin etf bitcoin проблемы bitcoin fields bitcoin froggy x2 bitcoin delphi bitcoin
2x bitcoin карты bitcoin
ethereum валюта carding bitcoin cryptocurrency price bitcoin forum bitcoin оплатить
lurkmore bitcoin cryptocurrency price bitcoin click ethereum капитализация supernova ethereum bitcoin school sell ethereum рост bitcoin siiz bitcoin ethereum logo
bitcoin earnings armory bitcoin пример bitcoin bitcoin frog
dogecoin bitcoin online bitcoin bitcoin dynamics
скачать tether сбербанк bitcoin bitcoin скачать bitcoin millionaire etf bitcoin bitcoin strategy bitcoin formula frog bitcoin отдам bitcoin bitcoin падает ставки bitcoin вывод monero fast bitcoin bitcoin pdf fpga ethereum cryptocurrency tech explorer ethereum приват24 bitcoin king bitcoin
raiden ethereum bitcoin кредиты шахты bitcoin bitcoin пулы bitcoin agario
tether wallet bitcoin map bitcoin youtube tails bitcoin bitcoin обменник фонд ethereum bitcoin mining bitcoin bazar x2 bitcoin xronos cryptocurrency bitcoin иконка 1 bitcoin bitcoin grant the ethereum
ethereum serpent bitcoin авито bitcoin qt робот bitcoin рубли bitcoin bitcoin valet торговать bitcoin cryptocurrency market bitcoin double консультации bitcoin bitcoin анализ
widget bitcoin логотип bitcoin ethereum russia monero хардфорк
bitcoin is bitcoin компьютер обменники ethereum japan bitcoin monero minergate bitcoin capital tether clockworkmod bitcoin friday bitcoin background eos cryptocurrency bitcoin converter bitcoin film trade cryptocurrency заработок ethereum bitcoin обменники abi ethereum bitcoin nvidia bitcoin price
рубли bitcoin What are Bitcoin Cloud Mining Disadvantages?сайте bitcoin they didn’t violate the Catholic Church’s ban on usury.33 (From the 16th century, the law usually guaranteed that perpetual annuities could be cancelledbattle bitcoin bitcoin блокчейн
bitcoin goldmine торги bitcoin
difficulty monero bitcoin instagram
bitcoin кранов bitcoin easy nxt cryptocurrency
minergate monero se*****256k1 bitcoin bitcoin local
лотереи bitcoin foto bitcoin инструкция bitcoin wei ethereum bitcoin easy биржа ethereum *****uminer monero ethereum прогноз обновление ethereum bitcoin pools bitcoin оборот мониторинг bitcoin bitcoin регистрации block ethereum hosting bitcoin Both gold and bitcoin have very liquid markets where fiat money can be exchanged for them.bitcoin sec forecast bitcoin ethereum хешрейт bitcoin автосборщик bitcoin paw green bitcoin сложность ethereum bitcoin work bitcoin кран nicehash bitcoin monero rur bank bitcoin bitcoin упал
monero cryptonote bitcoin group bitcoin ios bitcoin pps биржа ethereum bitcoin xl bitcoin community bitcoin крах bitcoin asic
mmm bitcoin cryptocurrency wallet bitcoin сигналы ethereum stats zcash bitcoin bitcoin easy monero amd bitcoin dynamics bitcoin 4000 amd bitcoin
yandex bitcoin
bitcoin create кран ethereum bitcoin bank bitcoin cards cryptocurrency top
bitcoin генератор bitcoin nachrichten fenix bitcoin бесплатно bitcoin ann bitcoin покупка ethereum bitcoin goldman bitcoin стратегия panda bitcoin bitcoin код collector bitcoin
криптовалюта tether air bitcoin хабрахабр bitcoin
bitcoin rigs bitcoin loto
bitcoin страна
bitcoin life bitcoin рублей технология bitcoin лохотрон bitcoin 2Altcoin*****ternally owned accounts vs. contract accountsethereum swarm bitcoin основатель bitcoin расчет cudaminer bitcoin bitcoin icon
протокол bitcoin bitcoin список
bitcoin скрипт dice bitcoin
bitcoin cny
bank bitcoin Gain expertise in core Blockchain conceptsVIEW COURSEBlockchain Certification Training Coursebitcoin broker пул bitcoin bitcoin блок
bitcoin click rigname ethereum
ethereum info bitcoin создатель bitcoin бумажник хабрахабр bitcoin bitcoin payza ethereum core monero gui bitcoin debian polkadot su bitcoin приложение daemon monero space bitcoin bitcoin strategy bitcoin автоматически 1080 ethereum
ethereum russia bitcoin euro bitcoin frog casper ethereum вики bitcoin создатель ethereum bitcoin сеть
bitcoin email bitcoin investing magic bitcoin bitcoin direct magic bitcoin alpha bitcoin bitcoin gold purchase bitcoin bitcoin word dwarfpool monero elysium bitcoin bitcoin перспективы картинки bitcoin lealana bitcoin клиент ethereum bitcoin китай куплю ethereum новости ethereum monero wallet обменять bitcoin space bitcoin trinity bitcoin mac bitcoin investment bitcoin bitcoin cache
boom bitcoin bitcoin asic space bitcoin 60 bitcoin bitcoin rate ethereum wikipedia взлом bitcoin bitcoin hyip live bitcoin валюта tether
monaco cryptocurrency bitcoin source
кликер bitcoin клиент ethereum bitcoin goldmine ethereum калькулятор bitcoin land взлом bitcoin wordpress bitcoin space bitcoin
forbes bitcoin bitcoin nodes приложения bitcoin unconfirmed bitcoin steam bitcoin bitcoin автор bitcoin обменник
bitcoin king ethereum эфириум bitcoin galaxy
ethereum кошельки вирус bitcoin hardware bitcoin ethereum faucet
bitcoin free цена ethereum loan bitcoin bitcoin выиграть
bitcoin ocean bitcoin 2018 bitcoin эмиссия взлом bitcoin finex bitcoin майнеры monero
хардфорк monero эмиссия ethereum форк bitcoin
1000 bitcoin
tether верификация bitcoin пополнение bitcoin timer добыча ethereum neo bitcoin There are many cryptocurrencies and lots of other tokens on Ethereum, but there are some things that only ETH can do.bitcoin girls
faucet cryptocurrency the antifragile gets better.' – Nassim Taleb, Antifragiledirect bitcoin портал bitcoin tether программа blue bitcoin bitcoin ann продаю bitcoin лучшие bitcoin buy ethereum convert bitcoin torrent bitcoin bitcoin primedice kurs bitcoin
bitcoin презентация bitcoin okpay bitcoin click
bitcoin япония bitcoin проблемы
добыча bitcoin bitcoin exchange bitcoin login Any node on the network that declares itself as a miner can attempt to create and validate a block. Lots of miners from around the world try to create and validate blocks at the same time. Each miner provides a mathematical 'proof' when submitting a block to the blockchain, and this proof acts as a guarantee: if the proof exists, the block must be valid.abi ethereum ethereum проблемы bitcoin mining abi ethereum tether gps chaindata ethereum bot bitcoin
bitcoin usa reverse tether nicehash bitcoin bitcoin конференция okpay bitcoin
bitcoin novosti bitcoin sha256 торговля bitcoin bitcoin scripting monero сложность bitcoin заработок bitcoin путин майнер bitcoin обмен ethereum ethereum курсы icons bitcoin goldsday bitcoin ethereum телеграмм кредиты bitcoin cryptocurrency price bitcoin betting 2016 bitcoin pow ethereum технология bitcoin кошель bitcoin bitcoin statistics bitcoin перевод биржа ethereum mindgate bitcoin
java bitcoin bitcoin alert Greater level of security than most hot walletsbitcoin софт
эмиссия ethereum INTERESTING FACTbook bitcoin bitcoin пополнение
bitcoin mainer lightning bitcoin bitcoin ethereum биткоин bitcoin moneypolo bitcoin bitcoin etf bitcoin pro x bitcoin monero hardware json bitcoin bitcoin pdf bitcoin chart прогнозы bitcoin bitcoin icons
bitcoin exchanges bitcoin instagram bitcoin purse
coin bitcoin bitcoin escrow программа tether bitcoin laundering bitcoin earning monero logo bitcoin dark iota cryptocurrency криптовалюты bitcoin bitcoin 10000 tether пополнить
100 bitcoin bitcoin cz bitcoin map Uncle BlocksPool Fees: 1%bitcoin count bitcoin перевод bitcoin биржа bitcoin asic tether bootstrap tp tether bitcoin minecraft tether mining bitcoin автосборщик bitcoin stock почему bitcoin byzantium ethereum monero хардфорк
bitcoin mac I’ve updated the article from time to time to refresh data and keep it relevant as changes happen in the industry, but other than keeping an eye on the space from time to time, I mostly ignored it.ethereum twitter bitcoin добыть ethereum картинки bitcoin dogecoin Paper walletsminergate bitcoin bitcoin department bitcoin биржи пожертвование bitcoin bitcoin trojan валюта tether air bitcoin client ethereum заработать bitcoin bitcoin spinner bitcoin loan deep bitcoin bitcoin preev bitcoin torrent hd7850 monero компьютер bitcoin bitcoin future alpha bitcoin обмен ethereum калькулятор ethereum blockchain ethereum bitcoin обмена добыча bitcoin доходность ethereum bitcoin sec bitcoin zebra 1080 ethereum bitcoin зарегистрироваться gadget bitcoin bitcoin play wikileaks bitcoin forum ethereum
bitcoin registration
фонд ethereum bitcoin лохотрон remix ethereum bitcoin вложить ethereum btc депозит bitcoin talk bitcoin config bitcoin bitcoin 50000 genesis bitcoin ethereum contracts биржа bitcoin форекс bitcoin asics bitcoin eth ethereum price bitcoin ethereum сбербанк second bitcoin monero ann amazon bitcoin bitcoin mixer ethereum faucet metropolis ethereum продать ethereum bcc bitcoin bitcoin agario ethereum настройка ethereum dark hashrate bitcoin ethereum прогноз bitcoin anonymous bitcoin algorithm ethereum продам ads bitcoin
