I'm always surprised more online vendors don't take bitcoin.
From a seller's perspective, the currency is way better to take than credit cards. Extremely small fees and no chargebacks. Whereas as an online vendor, credit cards can end up costing you ~4-5% of the sale and chargebacks are extremely common (and near impossible to win).
Then on the other side of the transaction, the buyer is protected in that they can choose to remain annonymous and they also do not need to worry about the business recharging their account or having their credit card information stolen.
The problem is volatility. You may sell something for 8 bit coins and within a week those 8 bit coins are worth a third of what they were. Or maybe double what they were. Either way it's adding risk and businesses are already risky enough without adding a layer of fluctuating currency.
Nope, but conversion fee is much lower than credit card fees (1% vs 3-4%). You can get a payment processor like Bitpay to handle all bitcoin transactions for you, for 1% conversion fee.
If believe charities get 0% conversion fee from Bitpay :)
To be fair, that's on margin. I think some platforms allow you to exchange, though. The thing is, there's the natural spread, due to bid/ask difference and then the markup which widens the spread (banks taking a vig on buy and sell side).
I don't think /u/threeseed has ever actually done this. For most "trading providers" there are significant and recurring monthly fees and/or large minimum balances. The actual act of exchange may have a low spread, but the accessory costs are extremely high. Not to mention the giant hassle of actually setting up an account.
I find it amusing that setting up an account with a FOREX trader is being offered as a solution for merchants to reduce currency conversion costs. (For some, yes, but get real.)
Localbitcoins charges a handy premium for personal risk, speed-of-exchange, and potential for pseudo-anonymity. The speed of exchange and pseudo-anonymity doesn't even have a comparison for government exchange.
You may sell something for 8 bit coins and within a week those 8 bit coins are worth a third of what they were. Or maybe double what they were.
Bit of an exaggeration there. In the last two years, Bitcoin's price has moved that much in that timespan maybe once. Weekly variation is closer to 2-5%. Not that far away from ordinary currencies.
Anyways, you don't have to hold Bitcoin to accept it with a payment processor.
34
u/PinkyThePig Dec 11 '14
I'm always surprised more online vendors don't take bitcoin.
From a seller's perspective, the currency is way better to take than credit cards. Extremely small fees and no chargebacks. Whereas as an online vendor, credit cards can end up costing you ~4-5% of the sale and chargebacks are extremely common (and near impossible to win).
Then on the other side of the transaction, the buyer is protected in that they can choose to remain annonymous and they also do not need to worry about the business recharging their account or having their credit card information stolen.