Payments made via a credit card are quite convenient. The majority of people use a credit card when they buy groceries, when they pay their bills or rent, and when they fill in their gas tanks. But are credit card payments really secure? In the following lines, we’ll compare credit card and Bitcoin transactions.
We’ll list the major pros and cons of both options and will try to elaborate on why Bitcoin payments are becoming more and more popular. A great deal of individuals consider Bitcoin transactions to be much safer than those conducted via a credit card. If you wish to find out whether or not that’s true, please, keep on reading.
Credit Card vs. Bitcoin Payments
Undeniably, both options have their pros and cons. People who prefer a more traditional mode of payments will certainly exclude Bitcoin transactions as an alternative. The reason being is that many people who are unfamiliar with the world of digital cryptocurrencies consider crypto payments to be unreliable.
However, that’s not the case. In fact, during our thorough research, we have come to the conclusion that Bitcoin transactions may be much more secure than those made via a credit card. The reasons for this are numerous. Of course, credit card payments also have their benefits, such as their wider acceptance, for example. Additionally, many banks grant users reward points whenever they use their credit cards.
Bitcoin transactions, on the other hand, are associated with many other advantages that have made millions of people switch from using credit cards to crypto-based wallets. In the next sections, we will list some of them and will do our best to explain why Bitcoin transactions are safer than credit card payments.
Bitcoin Transactions: Major Benefits
In the simplest terms, Bitcoin is a decentralized cryptocurrency that can be sent from one user to another within minutes, if not seconds, within the P2P Network. That is a special type of network where all linked devices have equal data processing permissions. Therefore, Bitcoin transactions do not require third parties to complete the process. That’s the very first perk regarding payments made with Bitcoin. Have a look at the following lines to learn about the remaining perks.
Minimal or No Fees
As we all know, most credit card transactions are associated with predefined banking fees that are usually dependent on the size of your transaction. However, when paying with Bitcoin, things are quite different. Although you may still be asked to pay a tax for the service, its amount will be insignificant. Many platforms and crypto wallets, on the other hand, guarantee tax-free transactions for all customers.
Additionally, international transactions made with credit cards are usually subject to enormous fees. Bitcoin transactions, however, are not associated with government institutions and are, thus, free from any further taxes. What’s more, Bitcoin transactions usually take less than ten minutes to complete, which is another key benefit.
Greater Security
One of the main reasons why people prefer Bitcoin transactions rather than credit card payments is that they are usually associated with lower risks. As we all know, credit cards are quite easy to hack, especially if you provide your credit card information on a dubious platform. Additionally, POS terminal devices can also be hacked, and you may have your information stolen within minutes.
A public key, on the other hand, allows you to conduct Bitcoin transactions. The public key is connected to a private key that will allow you to prove that you are the initiator of the transaction. Many crypto wallets also feature additional security measures, such as 2FA and QR code scanning.
Some decentralized Bitcoin wallets took things to the next level by generating a unique combination of words for every newly registered customer. This combination can be used by the client to sign up on their accounts on different devices. In case they lose the phrase, they won’t be able to log into their wallets. That is certainly a good way to keep your funds safe since it won’t permit a hacker to access your account even if they have your password.
Credit Card Transactions: Major Benefits
As mentioned at the beginning of our article, both credit card and Bitcoin transactions have their major pros and cons. One of the key advantages of credit card payments is that they can be refunded if the user has been deceived. Unlike Bitcoin transactions, credit card ones are reversible. A customer is allowed to demand charge-back in case they’ve become a victim of fraudulent activity.
What’s more, users of credit cards are likely to receive so-called rewards points whenever they pay via their cards. These points can later be redeemed for real cash. However, some cryptocurrency exchange platforms now give customers the opportunity to purchase pre-paid cards that will give them cash-back in the form of crypto whenever they make a transaction.
And the last and perhaps, the biggest pro of credit card transactions is that they are much more widely accepted than Bitcoin transactions. Even though cryptocurrency’s popularity is growing immensely, there are still a great number of companies that refuse to accept payments made with BTC, ETH, LTC, or any other digital currency.
Conclusion
All things considered, Bitcoin transactions are absolutely secure, and many people prefer making crypto transactions rather than paying via their credit cards. Experts believe that in the upcoming years, digital currencies will completely replace traditional financial institutions. In the meantime, we encourage you to carefully consider each payment of yours, whether it’s made via a credit card or a crypto wallet.