The cost for online Visa transactions has increased by the largest percentage in more than a decade,while Bitcoin’s have remained relatively stable. The news came through a document released by Visa to banks.
As Per the release:“Based on the most recent review in the U.S., Visa is adjusting its default U.S. interchange rate structure to optimize acceptance and usage and reflect the current value of Visa products.”
The increase is not universal, however. Some merchants will see lower fees, such as grocery stores and education. Nevertheless, as the online and ‘card-not-present’ retail industry increases, Visa’s charges will likely result in higher payments for consumers. [Forbes]
All transactions require some medium for completion, apart from simple peer-to-peer cash payments.Any time an online payment processing system is used, a cost for sending information is normal.
While the increase does not appear extreme in the case of any individual transaction,the cost begins to add up for online shoppers. Each transaction using Visa is charged $0.10 more, and with hundreds of online transactions, the fees add up.
Average transaction fees in Bitcoin are approximately $0.35 for transactions to be confirmed in 30 minutes or less.For those willing to wait an hour, transaction fees can be as low as $0.05. While fees can change depending on transaction size, averages are far lower.
Of course, Bitcoin’s fees are subject to change based on the number of transactions and miner requirements.However, on average, Bitcoin transaction fees are much lower than credit card fees.
consumers get what they pay for with Visa.However, Bitcoin transaction volume is poised to hit some new highs this year.
While both systems have pros and cons, Bitcoin offers advantages particularly for international transactions.As Visa charges continue to increase, use cases for Bitcoin should continue to proliferate.