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Author Topic: How does Bitcoin Point-Of-Sale work? - for novices  (Read 312 times)
pipsandbits
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June 02, 2016, 03:51:30 AM
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I started a small business with a retail location and would like to accept Bitcoin for purchases (via customer credit card). I've read about services such as BitPay, Coinbase, Coinify, etc... and I still don't understand how the actual, physical process works. Since most people in regular communities are new to Bitcoin, they will want to know the details and I need to be able to explain it to them in a way that will make them feel comfortable with the process.

Currently, when a customer wants to pay via credit card:

1. I plug the little card reader into my phone
2. Launch the processor's app
3. Enter amount of sale
4. Swipe customer's credit card
5. Get approval and customer signs
6. Processor takes money from customer's credit card and directly deposits the amount into my linked bank account.

- How does this work with a Bitcoin processor? Do I launch their app. and key in the customer's credit card info?
- How does the conversion work? Does the processor take money from customer's credit card in fiat, convert to Bitcoin at current rate and deposit Bitcoin into my wallet?
- I'd like to stop taking credit cards being linked to a bank account. I'd like to take customer payment via their credit card and get Bitcoin into my wallet ... no more banks!
- I'd like to be able to do this in several countries and prefer a processor that is non-U.S. based. Is this possible?

Many thanks to all in this community for helping me understand this.
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June 02, 2016, 06:51:00 AM
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I started a small business with a retail location and would like to accept Bitcoin for purchases (via customer credit card).
That question doesn't make sense. Bitcoin and credit cards are entirely separate things. It's like asking how to accept cash or gold for purchases (via customer credit card). Do you mean you wish customers to continue paying by credit card, but have the funds converted to Bitcoin instead of deposited into your bank account? No such service currently exists (and probably won't ever due to chargeback fraud), though if one did accepting credit card payments though it would be no different from any other payment processor. Banks would necessarily still be involved, since you can't have credit card transactions without them.

Will pretend to do unspeakable things (while actually eating a taco) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
pipsandbits
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June 02, 2016, 02:05:16 PM
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.
OK. So I compleeeetely misunderstood. See? That's why I posted  Smiley

Do you mean you wish customers to continue paying by credit card, but have the funds converted to Bitcoin instead of deposited into your bank account?

Yes! This is exactly what I wanted. So services such as Coinbase and BitPay are in case where [my] customer already owns Bitcoin and wants to purchase my product via Bitcoin - correct?
.
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June 03, 2016, 04:11:49 AM
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So services such as Coinbase and BitPay are in case where [my] customer already owns Bitcoin and wants to purchase my product via Bitcoin - correct?
Correct.

Will pretend to do unspeakable things (while actually eating a taco) for bitcoins: 1K6d1EviQKX3SVKjPYmJGyWBb1avbmCFM4
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