cash in hand is cheaper
credit card is cheaper, plz don't tell me that you only look at direct fees
- the client need a smart phone
- a internet connection plan
- a bitcoin client on the phone or a payment processor account
- accepts to pay the same value in USD/EUR using bitcoins but losing the ability to charge back
- needs to know that is doing
if the buyer is a eCommerce site not a shop then instead of a phone he need a PC
so what are the cost of using bitcoins instead of credit card ? and all the burden are shifted on the buyer
WOW! You really don't know what you are talking about.
CC might be cheap for the consumer
, but not the merchant
I operate a small business and pay so much in PP fees it would hire 1 guy fulltime! This with significantly lower than CC processing fees. Changing to direct CC processing now would double up the cost probably.
Right now Bitcoin mostly matters for online purchases, anyone looking to make online purchases does not need any additional investment to utilize Bitcoin. NADA.
Only investment is a little bit of time to install bitcoin client, register on Mt.Gox and buy bitcoins.
Chargebacks are an extreme
cost at the merchant side, and this extreme cost is added directly to the end product costs for honest customers. Single chargeback can loose the merchant thousands of euros, atleast in the case of Paypal where paypal might take the chargeback amount + another time the chargeback amount as reserve for costs of handling the chargeback. Even if you disputed successfully the chargeback there is upto 15% cost.
Now even at 7.5% cost, even if 0.1% customers do chargeback and you successfully dispute it 100% of the time, is 7.5%+human resources added to the final product price.
Computers are dead cheap nowadays anyways, 150-200€ for cheapest netbooks, new
400€ for full desktop.
That is less than any serious business would pay in TRX fees in any given month. Nevermind if they actually process the CC fees themselves there is also reserves etc. holding a % for atleast months, or for the lifetime of the merchant account.
Payment processing is currently *very expensive
*, for example for us it accounts for roughly 6% of total costs! More than our marketing budget ffs.
If we'd solely use bitcoin, buyer would benefit:
- At the very least 3% average lower service price, more likely in the 15% area (for 100% margin service, 1euro saved in costs lowers end price 2euros, 25% margin service price will likely stay the same)
- No PP Dilemnas, getting verified etc.
- No random payment reversals with PP and causing need to submit extra info to PP for validation
- No sending utility bills, drivers license pictures etc.
- Not having to keep a valid CC on file @ PP to be charged anytime for whatever reason PP decides
- Not having the chance of PP employee stealing your CC information (In the past even cleaners had access to CC information)
- No random accounts freezings
- No waiting always PP to load forever (for finns logging in might take 3-7minutes, amazing it doesn't hit timeout)
- Fast transaction histories if you need it
- Ability to purchase sub-1$ priced services (PP Charge minimum 0.39$ TRX fee), in practice availability of good value sub-5$ services. Anything below 5$ and the TRX fee margin becomes too high
- Some long term payment discounts on low priced services are transferred to even monthly subscriptions (TRX fee minimums)
- Anyone could use our service, as in practice Bitcoin is available to any nationality without restrictions (Unlike PP)
Many have asked us to support WU, but we'd have to charge 40-60€ per transaction for using WU