Bitcoin has become a highly popular cryptocurrency due to its security, and remarkable returns. By implementing proper caution, sending, and receiving of Bitcoin can be done easily to anyone without exposing the information of their bitcoin wallet, or accounts.
This article will talk about the working of bitcoin and its similarity with a credit card processing system.
About a Bitcoin Payment Service
Bitcoin payment services enable both businesses, and merchants to receive payments in the form of bitcoins from individuals in exchange for the services, and/or goods sold to them. Bitcoin merchant service works quite similar to the debit or credit card payment service.
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Is Bitcoin Payment Service the same as credit card processing?
In Bitcoin (the digital web portal), and credit card payment service (the in-store swipe system), the same type of payment service system works that enable validation, and processing of the credit card to make the payment.
This payment service safely records and transmits important payment details, authenticates the credentials, facilitates money transfer among the respective entities, and issues a confirmation mail to the involved stakeholders. This mail states the successful completion of the transaction.
Bitcoin payment services serve as an intermediate between the receiver, and payer for processing bitcoin payments. The process involves recording financial transactions that are made on the “blockchain” public ledger.
They enable Bitcoin merchants to receive payments in the form of bitcoins at physical, as well as online locations without any need of the seller, or buyer to go into the complexities of bitcoin payments procedure that is performed at the back-end.
Why Bitcoin Payment Services are preferred over credit card payment service?
The processing of both these payment models is quite similar, however, there are several compelling reasons that make Bitcoin processing superior to credit card processing.
• In comparison to bitcoin payments, conventional credit card payment is found to be expensive fur to the high cost of a transaction. This is due to the difference in the processing fee in both cases. Where in Bitcoin transactions, a 1% settlement fee is charged by the merchant, in case of credit cards it is 2% to 3%. This can result in a big difference when high amounts are involved.
• Bitcoin payment services enable a borderless payment network that represents the seamless transfer of any amounts of bitcoins through it to/from any part of the world.
• Bitcoin payment services maintain transparency in all monetary transactions.
• Using Bitcoin payment services, a merchant obtains various different mediums to accept worldwide payments. He also gets a trusted identity in the world of cryptocurrencies. Bitcoin payment services are a secure, dependable, and transparent mode to obtain payments.
So, these are the ways in which the Bitcoin payment service shares a similarity with the credit card processing system. However, the Bitcoin comes with various benefits in terms of charges, transparency in transaction, network availability etc. over credit card payment mode.