Credit Card Fees Jump while Bitcoin Transaction Costs Remain Stable

MoonX
MoonX
Feb 13 · 2 min read

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.

Read More: https://beincrypto.com/consumer-beware-visa-fees-jump-while-bitcoin-transaction-costs-remain-stable/

MoonX is Engineering Powerhouse for FinTech Excellence. Just within a year tagged as the ‘Best Potential Unicorn in Fintech Space 2019’ by Tracxn.

More From Medium

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade