Overstock says crypto carries smaller transaction fees than credit cards

30 comments

  1. VisaEchoed

    |Author

    They have no fraud department…. Not because fraud won’t happen, but because it isn’t their problem. It is yours.

    If someone steals my credit card, I just call my bank and get that charge reversed. The business has a fraud department because they are liable for those transactions, not me.

    With Bitcoin they don’t care, nobody can reverse a charge. You get screwed, but not them.

    And if you have a problem with your order… Like they don’t send it, with a credit card, again, your can get a charge back.

    A credit card payment is really just a promise to pay that company, if they don’t play right, you can cancel it. With Bitcoin, is like cash….. But you don’t pay cash for an item that you get later. A credit card makes far more sense.

    Maybe you pay 3% more, but you probably get between 1 and 2 percent back anyway. So for 1-1.5% you get a vastly better experience for the customer. But for slightly less, you get one that benefits the seller.

  2. stillflyscabin

    |Author

    That’s because it is like cash, and all the risk is taken on by the consumer. Just like if someone steals your cash and spends it, the store has no responsibility. The efficiency has to do with who’s paying for the risk, it’s not inherent to the system.

  3. Astroloan

    |Author

    I think more companies should do this.

    As an aspiring criminal, I find it noteworthy and highly commendable when bold companies make the right choice and announce where and how many fraud department employees they have. Its very helpful.

  4. LionTigerWings

    |Author

    Not sure why anybody tries to act like crypto will replace credit cards. Credit is… well credit. You don’t need to have the money up front. It’s made to provide security to both sellers and buyers. You don’t pay that fee just to transfer funds. You pay for security and convienence. Hell, it could actually make sense one day in the distant future to have a credit card that spends in BTC.

    Tl;Dr: crypto replaces cash or debit, not credit.

  5. Hanspanzer

    |Author

    sellers reputation will play a even bigger role in the future in order to compensate for the lack of charge backs. or third parties like amazon will fullfill the role as escrow. ofc not for free and there we have the 2% fees again maybe.

  6. ilikeeagles

    |Author

    I bought something for the first time from overstock last week with bitcoin. It was an easy process. Took maybe 30 minutes to verify that I sent payment. Would highly recommend.

  7. lifeiswater

    |Author

    I dont want to be a dick but credit card companies offer great benefits from cash back, disputing transactions, price match…just to name a few. I see the benefit of using crypto as a payment system but dont think it will convince credit card users.

  8. Hmm, they have no fraud department, but I’d imagine more support workers or training for the crypto space. Heard very negative things about Overstock’s handling of crypto situations when they are the ones that screwed up.

  9. nekosempai

    |Author

    Things like this is why I hold, AND BUY in cryptocurrency when I can. We may see market manipulation, pump and dumps that make crypto look like ess uh scam! Waddam eye gonna doo! Then, I remember use case benefits that people in all industries will benefit from. This is why I believe crypto is a long term thing to invest in. Don’t be sad guys, there is a lot of supportive evidence that crypto will succeed. Lets just hope we make some money along the way. That parts not guaranteed though. Never forget just because crypto imho will succeed, doesn’t mean the coin you picked, or any coin that’s currently out will succeed. If you are that nervous about losing money, then sell as soon as you see the next up tick.

  10. AndyWatt83

    |Author

    It’s unfortunate that the current implementations have a relatively low transaction throughput. As we have seen with the use of crypto goes up much from the current levels, the fees can start to get prohibitively high for many use cases.

    Hopefully some of the scaling solutions come to fruition in the near future. I think we’ll see a significant rise in adoption for the reasons stated, assuming the networks can handle the transaction volumes while keeping the costs manageable.

  11. Raymikqwer

    |Author

    And the buyers lose the safety net they have with a credit card that covers them for fraud, or anything else that could occur. So not good all round.

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