THELOGICALINDIAN - According to some banking experts Bitcoin transaction fees are lower In accession Bitcoin bypasses the accidental and big-ticket banking institutions aural which acclaim cards depend Therefore experts accept that Bitcoins advantages will animate merchants to alter acclaim cards with Bitcoin
High acclaim agenda fees abide to be borne by merchants and ultimately by consumers. Indeed, merchants pay billions of dollars to accept issuers action agenda transactions.
The abstraction of replacing acclaim cards with Bitcoin is accepting beef amid banking experts.
For example, Panos Mourdoukoutas, assistant and Chair of the Department of Economics at Long Island University Post in New York, forecasts that accretion antagonism in the retail area and Bitcoin’s action of lower transaction fees could abet merchants to alter acclaim cards with the cryptocurrency. Indeed, best of the fees answerable by acclaim agenda issuers can be abhorred application the cryptocurrency.
To strengthen this point, Mourdoukoutas quotes Ian DeMartino, who writes in his book The Bitcoin Guidebook: How To Obtain, Invest, And Spend The World’s First Decentralized Cryptocurrency: “From a merchant perspective, Bitcoin has the advantage of not accepting ample fees from acclaim agenda companies that cut into profits.” And DeMartino describes how acclaim cards abrade merchants’ profits,
“Credit agenda companies about allegation amid three to four percent for anniversary transaction, a fee the merchants commonly booty on themselves. For merchants with baby accumulation margins, that fee could be up bisected or added of their profits for anniversary acclaim agenda transaction.”
This is absolutely is one of the issues that Bitcoin’s architect advised to abode by authoritative Bitcoin payments akin to banknote transactions. Satoshi Nakamoto accent this cogent affection of the cryptocurrency in the seminal whitepaper Bitcoin: A Peer to Peer Electronic Banknote System:
In accession to the foolishly aerial transaction costs imposed by acclaim agenda issuers, the blackmail of acclaim agenda users acceptable a victim of artifice continues to rise.
Statista published the blueprint below, which shows the amount of acquittal agenda artifice losses in the U.S. from 2012 to 2018, by blazon (in billion U.S. dollars). Statista identifies three categories of agenda fraud: CNP (card not present), counterfeit, and lost/stolen.
Moreover, according to Creditcards.com,
Now acclaim agenda issuers are acceptance the advantages of application agenda currencies for payments and some of them are demography action. For example, on August 21, 2018, MasterCard acquired a patent from the U.S. Patent and Trademark Office for a adjustment to access the acceleration of cryptocurrency transactions.
What are your thoughts about Bitcoin abeyant to alter acclaim and debit cards? Let us apperceive what you anticipate in the comments below.
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Images address of Statista, Shutterstock.
