[2017-11-05] New York Preschool Accepts Bitcoin, But Not Credit Cards

[Terraformer]

While Bitcoin sceptics claim that Bitcoin is only used for speculation and has no actual uses, a New York preschool has shown that Bitcoin can be a convenient and successful method of payment.

Enquiry from parents

In an interview given by Marco Ciocca, the Chairman of The Montessori Schools in Flatiron and SoHo, to Business Insider, he explained that he had a few parents enquiring about the use of Bitcoin as a means to pay the tuition fees.

We had probably a handful of parents who mentioned, Hey do you accept Bitcoin? I've got this Bitcoin. Can we pay tuition in Bitcoin?

Since Marco had been following the Bitcoin space for the past few years and was aware of the advantages of using Bitcoin, including ease of payment, low fees and quick and speed of the transactions. Together with other members of the administration, Ciocca decided to add Bitcoin as a payment option.

Credit card fees can be a killer

The school does not hold Bitcoins and uses a payment processor to receive fiat in their bank accounts. Hence they are not exposed to Bitcoin's price volatility. While the exchange does charge them a 1% fee to process transactions, this pales in comparison to the fees charged by credit card companies.

Moreover, credit cards can get declined, which leads to additional fees. Therefore, the school does not accept credit card payments. Apart from Bitcoin, the school accepts cash, cheques and electronic wires.

Yeah, there's about a 1% transaction fee, which is less than, you know, 2, 3, 4% sometimes with credit cards. A lot of them get declined and then you have more fees and then you have to re-charge them and that's been kind of, sort of a headache for schools.

Not a gimmick

Many companies have made news recently by adding Bitcoin as a payment option, but have found few customers willing to pay with the digital currency. In this case, there are a handful of parents who have paid tuition fees using Bitcoins. Since there are parents who have a career in the Blockchain space, they were open to the idea of making payments using Bitcoins.

From the school's point of view, they were just offering an additional and convenient payment option to the parents. Bitcoin is not the exclusive preserve of futuristic businesses; even brick and mortar schools can adopt it

https://cointelegraph.com/news/new-york-preschool-accepts-bitcoin-but-not-credit-cards

[Spaffin]

Here, a low percentage of transactions in bitcoin is used quite efficiently, unlike commission when accepting payment by credit card or other similar methods. However, the administration of this preschool institution can not be accused of using crypto currency for personal gain, since all operations are well documented.

[ImHash]

They have made the right decision to accept bitcoin from parents, But I don't know how they'd come up with this idea that bitcoin transactions are fast? Seems like they never met blockchain. Though I guess if they use payment processors you could say that transactions are really quick.

[Carlton Banks]

This is a real Bitcoin victory; a well-known business (a Montessori Schools... franchisee?) accepting BTC and refusing VISA/Mastercard payments.

I'll be happy to see more of this, although maybe we should be celebrating Bitcoin's successes in Zimbabwe and Venezuela more. In failing economies, Bitcoin has the potential to defeat the government where physical means alone seemingly cannot.

I don't know how they'd come up with this idea that bitcoin transactions are fast? Seems like they never met blockchain. Though I guess if they use payment processors you could say that transactions are really quick.

Bitcoin is faster than debit and credit cards, credit cards especially.

But it's not as fast as cash (yet). Only the Lightning Network (or some other 2nd layer network on top of Bitcoin) can be as fast as cash. And LN could also be a major game changer in failed or failing economies as described above.

[Karartma1]

This is a real Bitcoin victory; a well-known business (a Montessori Schools... franchisee?) accepting BTC and refusing VISA/Mastercard payments.

I'll be happy to see more of this, although maybe we should be celebrating Bitcoin's successes in Zimbabwe and Venezuela more. In failing economies, Bitcoin has the potential to defeat the government where physical means alone seemingly cannot.

People ain't that stupid Carlton!  
The Bitcoin seeds have been planted and nothing can stop people to get back their financial freedom and independence.
The more of these examples the better. Let November pass (fork) and let this baby grow

[Carlton Banks]

Yeah, I just don't wanna cheer too hard for rich middle-class New Yorkers when this makes more of a difference to people that are struggling to live.

[1Referee]

Bitcoin is faster than debit and credit cards, credit cards especially.

Faster in what way? Settling transactions? In that regard, it's indeed correct. Bitcoin just needs one confirmation to make a transaction final, where with credit cards and other popular payment services, it can take months before you as receiving party fully "own" your money. If more schools, businesses, etc, start doing this, I am quite sure that MasterCard & Co will start sweating like never before, knowing that they are being discarded. At the end of the day, to make a serious impact, and cut through this system, we need more entities with this level of courage. First steps are already set.

[Iranus]

What we're missing is that this is by no means a trend.  When you have a country with many thousands of places that could potentially accept BTC, and they could decide to start accepting BTC at pretty much any time, it's not actually so great.

Awareness of BTC is high enough that a huge amount of the American population (and a fair amount worldwide) at least have some knowledge of Bitcoin, so the fact that we're still talking about one place at a time is actually not much good at all.

People are very cautious with their money so progress will be slow and steady, but this still doesn't justify the high price at all.

[Thiptiout]

we now see many sites and places accept bitcoin this is mean price will increase

[roddy5]

Here, a low percentage of transactions in bitcoin is used quite efficiently, unlike commission when accepting payment by credit card or other similar methods. However, the administration of this preschool institution can not be accused of using crypto currency for personal gain, since all operations are well documented.

Aside from avoiding those transactions fees from credit cards, this school has a potential of earning more from those tuition fees. Bitcoin's prices are changing rapidly on a positive way and if they are going to keep those coins they will definitely earn more from those tuition fees. Such a bright idea from its management.

[BitHodler]

we now see many sites and places accept bitcoin this is mean price will increase

Not really. Merchant adoption isn't really a trigger for the market anymore. At this point, more than ever, speculation is the main driver of this market. People no longer underestimate Bitcoin, and thus speculate on much higher prices.

Even to such an extent, that people are actually looking to hodl their coins for a longer period of time, which wasn't really the case with how thing were a year or two ago. More people + more willingness to hodl makes the price spike.

[jjacob]

Here, a low percentage of transactions in bitcoin is used quite efficiently, unlike commission when accepting payment by credit card or other similar methods. However, the administration of this preschool institution can not be accused of using crypto currency for personal gain, since all operations are well documented.

Aside from avoiding those transactions fees from credit cards, this school has a potential of earning more from those tuition fees. Bitcoin's prices are changing rapidly on a positive way and if they are going to keep those coins they will definitely earn more from those tuition fees. Such a bright idea from its management.

They are not keeping the coins. They use a payment processor and fiat gets credited to their accounts.
It would actually be foolish for them to hold bitcoins. Trading bitcoins is not their strong point. If they collect tuition fees and gambled it on Bitcoin, the entire management would be fired.

[honeyb0y]

Here, a low percentage of transactions in bitcoin is used quite efficiently, unlike commission when accepting payment by credit card or other similar methods. However, the administration of this preschool institution can not be accused of using crypto currency for personal gain, since all operations are well documented.

Aside from avoiding those transactions fees from credit cards, this school has a potential of earning more from those tuition fees. Bitcoin's prices are changing rapidly on a positive way and if they are going to keep those coins they will definitely earn more from those tuition fees. Such a bright idea from its management.

They are not keeping the coins. They use a payment processor and fiat gets credited to their accounts.
It would actually be foolish for them to hold bitcoins. Trading bitcoins is not their strong point. If they collect tuition fees and gambled it on Bitcoin, the entire management would be fired.

Well if bitcoin's price goes higher after several months then it will be an extra income for the school.
But yes you are right the management is not allowed to do trading for the school, their directors might fire them.

[TheKeyLongThumbI]

These parents aren't smart at all. If I were them, I won't use any of my btc just to pay my children's tuition fee. Meanwhile, these schools are going to swim in piles of cash because of making btc as another payment option.

[TTITA]

From what i see, New York Preschool just wants to take advantage of these bitcoins transactions, they have not/yet educated on how these bitcoins work and using it function.
When compared to creditcard, based on time efficiency and cost. bitcoins have an advantages. Bitcoin confirmation process can takes max 1-2 days even less if we make payment with some recommended cost set. Else, the process of bitcoin payment one direct way, if the payment has been released and confirmed, then there is no refund or chargeback.

[ApocalypseNow]

I hope that the parents of their students would pay btc because it's really not a good choice spending it on things like this when you know it's going to rise more in value next year. I know that parents would still prefer to pay in fiat because btc is too valuable and expensive now.

[Kemarit]

This is a welcoming news for those parents who are into bitcoin. I read somewhere that in New Jersey, there is a restaurant that only accepts bitcoin and cash but not credit card as well. And now its a school. Victory for bitcoin indeed. And I'm pretty sure that those parents that are not into bitcoin will became curious as to what it is and maybe they would get into bitcoin and will used it in the future to pay with their kids tuition. We all know bitcoin's price is so volatile, so maybe the schools can get extra funds in bitcoin price soars. But as a parent, I wouldn't mind paying in bitcoins though.

[aso118]

These parents aren't smart at all. If I were them, I won't use any of my btc just to pay my children's tuition fee. Meanwhile, these schools are going to swim in piles of cash because of making btc as another payment option.

You can always use BTC to pay the school tuition fees and then buy bitcoins with fiat, if you really are bullish on Bitcoin. In the end, the school (and the parents) are just using bitcoins as a means to transfer value. Nothing more, nothing less.

[coolcoinz]

That's what I'm waiting for. More companies that will allow me to spend my coins directly so I don't have to go through fiat and pay taxes.
It's only that those companies we hear about are almost always in the US. We need the rest of the world to catch on.