Bitcoin is famous as virtual gold within the mainstream market players.
As the cryptocurrency with scorching properties has created a booming situation in the marketplace.
All the more, bitcoin is now subjected to an exceeding user base and trading volume alongside acceptability.
Bitcoin is the utmost robust and safe method for making transactions if utilized properly with utter caution and measures.
Bitcoin is correspondingly rendering a commendable return of investment to the mainstream market players as well as novices.
Not only bitcoin but other cryptocurrencies like the lite coin and ripple are correspondingly utilized as a transaction method.
There is the software bitcoin era that can help you in getting fruitful outcomes in the bitcoin journey.
The extreme user base of bitcoin, alongside an exceeding acceptance, has led many small businesses to accept bitcoins.
This is alongside multinational companies at the very same time.
Bitcoin’s core notion is the same as the traditional banking system when it comes to making transactions.
But the dynamics are exceedingly diversified.
Below is everything you need to know about how bitcoin is different from the payment services like credit cards.
Quick Overlook
What Do Bitcoin Payment Services Refer to?
Bitcoin payment services are the route of accepting bitcoin as a substitute of physical or fiat currencies by the consumer for the goods and services.
As mentioned ahead, the core notion of bitcoin payment services is just similar to traditional banking.
However, there are some authentic and productive benefits of bitcoin payment services.
At the instance of debit card and credit card system, the online portal subjected with the carding services, authenticate or approve the transaction and secure the crucial information regarding the transaction.
In the case of bitcoin, the group of miners verify the transaction processing progression.
These miners later record the transaction to the public ledger in order to embrace the authenticity of the bitcoin complex.
Nevertheless, the progression of bitcoin transaction verification is not possible to either sender or receiver.
While making transaction all they see is bitcoin going through their bitcoin wallet and bitcoin coming to their bitcoin wallet, nothing else.
Mechanism of Bitcoin Payment Services
Accepting bitcoin as a payment method sounds complicated at the very foremost instance.
However, the progression to accepting bitcoin as a payment method is quite simple.
There are several platforms that allow you to accept bitcoin as a reward for rendering goods and services to the consumer.
Some of them are e-commerce stores such as Shopify and many more.
In a nutshell, the business complex rendering services to bitcoin as a payment method to the customers can accept bitcoin as a payment method from any portal possible.
Workflow of Bitcoin
Bitcoin workflow is straightforward to understand.
Let’s have a look.
- At the very foremost instances, your customer is willing to make payments in bitcoin.
- The customer can make transactions through any of the possible methods such as QR code, in-store, wallet address.
- Once the customer has made the transaction in the bitcoin complex, you need to just convert the explicit amount into fiat currencies. Also, make sure the trustable bitcoin exchange you are about to consider for receiving transactions is subjected to desired features. And make sure you have your bank linked with the trustable exchange.
- After receiving transactions, make sure that you convert the amount in fiat currencies and transfer it to the bank account. You further debit your funds in your bank account through your debit card.
Benefits of Utilizing Bitcoin as a Payment Method in Contrast with Credit Cards
Bitcoin is a decentralized cryptocurrency with no third parties which determines the declined and nominal settlement charges.
The transaction processed in the bitcoin complex via trustable exchange in the bitcoin complex is a subject to a transaction fee of less than 1% of the entire amount.
Whereas in case of credit cards, the settlement charges may vary 2 to 5% depending utterly upon the transaction amount and the carding services.
Bitcoin is a subject to zero rules of the higher authorities.
In a nutshell, the transaction appealed internationally are much more productive and embraced in contrast to the credit card system.
As the transaction consumes only minutes and the transaction fees of the bitcoin complex in case of the international transaction are correspondingly declined.
These are some of the differences between bitcoin and credit cards.