Are Bitcoin Payment Services Like Credit Cards?


Bitcoin is the most popular cryptocurrency in the world and no other form of cryptocurrency is getting even close to it at the moment. It is said to be one of the most secure ways to transfer currency and is also some of the most secure money on the internet. When you exercise caution, you are able to make some quick and easy internet transfers without ever revealing any sensitive information that may be linked to their Bitcoin account or their Bitcoin wallet.

Right now, many cryptocurrencies are seeing a huge uprise in transactions and among the most used are Bitcoin, Ripple, and Litecoin.  Many businesses have decided to ride the high that Bitcoin is on right now by deciding to offer it as a form of payment so you can use Bitcoin and other forms of cryptocurrency to pay for different good and services. This has been revolutionary, and people are loving this new addition.

Thanks to this amazing new payment service, you can easily head to your local coffee shop or make a large purchase with just your Bitcoins which has completely changed the lives of many people. If you have ever been confused about how Bitcoin payments work or have ever questioned the payment services, all of your answers will be readily available in this article. If you decide to invest in Bitcoin, visit the website to find out more.

What is it?

It really isn’t hard to gain an understanding of Bitcoin payment services; they are fairly straightforward and the name itself explains quite a lot. They essentially make it easier for people, merchants, and businesses, to accept/use Bitcoin as a form of payment for good and services and, in turn, this allows far more freedom and a lot more payment options. For example, it works quite similarly to how the processing of a standard credit/debit card service would work.

To gain a better understanding, you are able to enter a local store to make a purchase, swipe your card at the counter, and then you punch in the PIN number to make the payment. Bitcoin payment services actually work quite similar because they act as a form of intermediary layer between the person who pays and the person who is receiving it for processing of the payment. This also includes the processing of it through a blockchain public ledger.

The advantages

Compared to other forms of payment, such as credit card payments, Bitcoin payments are significantly cheaper due to the lower transaction costs. For example, BitPay charges a flat 1% settlement fee, whereas around 2% to 3% is usually charged by the fiat currency credit card processing service. While it may not sound like much, it turns out to be a big difference in the long run.

Bitcoin also allows fairly seamless transactions as well as a borderless payment network to make it all easier. This is yet another reason that it is such a good form of payment.