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Started By
Message
BitPay Bitcoin processing fees vs. PayPal and Rewards Cards
Posted on 4/15/13 at 8:48 pm
Posted on 4/15/13 at 8:48 pm
This is a discussion about bitcoin as a payment network.
Do any of the bitcoin doubters out there see this as a benefit of bitcoin? Can you see its potential for disruption of certain industries?
Also, before any one comes in wondering why there is a 0.99% fee when bitcoin transactions are supposed to be zero or near zero: This is a chart from a bitcoin processing company called BitPay. The 0.99% fee is what they charge for handling the software side of the transaction and for depositing the money in your account after the transaction is complete. BitPay allows merchants to be paid in US dollars (if they choose) and for the exchange rate to be secured. In other words, if you sell an item for $5.00 and the user pays in bitcoins then you will get $5.00 (minus the fee) regardless of what the bitcoin exchange rate is that day.
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Posted on 4/15/13 at 9:02 pm to WikiTiger
Why do USD have a 1% process fee?
Posted on 4/15/13 at 9:03 pm to C
/\ that?
Posted on 4/15/13 at 9:04 pm to C
quote:
Why do USD have a 1% process fee?
Because BitPay says so
Posted on 4/15/13 at 9:05 pm to C
quote:
Why do USD have a 1% process fee?
They are just showing all the options a merchant has to choose from.
With BitPay, you (the merchant) can opt to get paid in bitcoins, and BitPay will take a 0.99% fee for that. Or you can opt to get paid in US dollar, and they will take a 0.99% fee for that. (Notice the heading in the graphic says "Bitcoin Payout" and "USD Payout")
They actually let you specify a percentage if you wanted, so, for instance, a merchant could choose to keep 30% in bitcoins and 70% in US dollar if they so choose.
Regardless, the chart is just illustrating that the fee for BitPay's services, however you choose to use it, is only 0.99%.
This post was edited on 4/15/13 at 9:07 pm
Posted on 4/15/13 at 9:10 pm to Vols&Shaft83
quote:
Vols&Shaft83
so are you just going to troll or will you discuss the topic?
Posted on 4/15/13 at 9:11 pm to WikiTiger
I see it as someone trying to lure more potential merchants to bitcoins due to the lower processing fee.
However that doesn't necessarily change the issue of bitcoin price fluctuation.
Also what's the incentive to spend the time to set this up with a small user base?
I know it's got lots of hype lately, but do you really think the casual users / new users are staying in bitcoins after the recent wild fluctuations?
However that doesn't necessarily change the issue of bitcoin price fluctuation.
Also what's the incentive to spend the time to set this up with a small user base?
I know it's got lots of hype lately, but do you really think the casual users / new users are staying in bitcoins after the recent wild fluctuations?
Posted on 4/15/13 at 9:16 pm to eng08
quote:
I see it as someone trying to lure more potential merchants to bitcoins due to the lower processing fee.
Well, yea. That's how competition works.
quote:
However that doesn't necessarily change the issue of bitcoin price fluctuation.
Why not? A merchant need not concern himself with exchange rate volatility. I would argue that's a significant selling point, especially in these early days of bitcoin. It certainly makes merchants more willing to accept it.
quote:
Also what's the incentive to spend the time to set this up with a small user base?
Merchants who have set it up have reported that the whole process takes about 30 minutes to setup. It's as simple as adding a short code snippet to your site, and then providing direct deposit bank account info to BitPay.
quote:
but do you really think the casual users / new users are staying in bitcoins after the recent wild fluctuations?
Bitcoin isn't going away. Some people may have been frightened off. That's ok. It's happened in the past. Will probably happen again. But Bitcoin will continue to experience long term growth.
This post was edited on 4/15/13 at 9:17 pm
Posted on 4/15/13 at 9:17 pm to WikiTiger
If I had bills that needed payed last Friday, I would have been F.U.C.K.E.D. with a capital F, no different than like Greece and Cyprus.
I hate what the Federal Government is doing to the Dollar, but at least it's always available. Or so far.
I hate what the Federal Government is doing to the Dollar, but at least it's always available. Or so far.
Posted on 4/15/13 at 9:20 pm to WikiTiger
quote:
A merchant need not concern himself with exchange rate volatility.
Wha.......???
I sell something for 10 btc when btc= $90 and when I get my btc from Bitpay, btc has dropped to $75, but I don't care?
Posted on 4/15/13 at 9:26 pm to WikiTiger
Why is the fraud risk for bit coins zero? Are you saying businesses have no incentive to protect consumers from fraud? what about someone picking out the public wallet during the transaction delays?
Posted on 4/15/13 at 9:28 pm to C
quote:
Why is the fraud risk for bit coins zero?
Because there are no chargebacks.
Merchants that accept credit cards are on the hook for any potential fraud committed with them. So that's another cost of doing business with them.
quote:
Are you saying businesses have no incentive to protect consumers from fraud?
I don't know how to answer this because it assumes a lot. In bitcoin, it's as if the user is paying with cash. In the real world, if a person uses stolen cash to buy a case of beer from Wal-Mart, does Wal-Mart have to reimburse the victim?
quote:
what about someone picking out the public wallet during the transaction delays?
I don't know what you are talking about with this question.
This post was edited on 4/15/13 at 9:31 pm
Posted on 4/15/13 at 9:34 pm to WikiTiger
Walmart receives cash instantly. Bit coins take time to transfer.
Posted on 4/15/13 at 9:34 pm to WikiTiger
Bitcoin has lost 25% of its value in the last 12 hours.
/thread
/thread
Posted on 4/15/13 at 9:34 pm to C
quote:
Walmart receives cash instantly. Bit coins take time to transfer.
No. Bitcoins transfer instantly. They take time to confirm.
Posted on 4/15/13 at 9:44 pm to LSURussian
hmmm... Is bitcoin really losing value, or is the dollar just strengthening?
/sarcasm
/sarcasm
Posted on 4/15/13 at 9:45 pm to WikiTiger
quote:
No. Bitcoins transfer instantly. They take time to confirm.
Good thing time doesn't equal money to businesses. No reason to put transaction time for comparison.
Posted on 4/15/13 at 9:45 pm to WikiTiger
Are you saying that eventually merchants will use or start to accept bitcoins as form of payments due to the low processing fees compared to credit cards?
Posted on 4/15/13 at 9:50 pm to C
quote:
Good thing time doesn't equal money to businesses. No reason to put transaction time for comparison.
If you really want to get that petty, then credit cards still lose.
Bitcoin transfers are instant, but require 6 confirmations (about 1 hour) for security purposes.*
Credit card transfers may seem instant to the consumer, but they are actually open for a long time. 3 months is pretty common, but I've heard of chargebacks being successful up to a year later.
So, which is better: 1 hour before full security that the money is yours, or 3 months?
*As I've explained in the past, 6 confirmations is the standard to be secure that your transaction won't be "double spent." However, small transactions ($10 or less) could be done comfortable with 0 confirmations (aka instantly). Due to the effort required to successfully double spend, it's not worth the attempt unless the money is substantial.
Posted on 4/15/13 at 9:51 pm to AUtigerNOLA
quote:
Are you saying that eventually merchants will use or start to accept bitcoins as form of payments due to the low processing fees compared to credit cards?
I'm simply saying that one of the key features of bitcoin as a transaction network is very cheap (or free) transactions.
I think that minimizing costs would be attractive for most merchants, don't you?
This post was edited on 4/15/13 at 9:53 pm
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