When you’re out of cash, a credit card may seem like the best solution. However, it can be difficult and sometimes a hassle to obtain them because of the many bank requirements. Regardless, the average income earners to the rich do find credit cards to be an easy way to pay the bills, buy goods online, and pay for services. They are reeled in by enticing promos but end up having to pay high interest rates and penalty fees.
There is now an alternative way for consumers to pay their bills and purchase what they need using cryptocurrency. Cryptocurrency is the new way to procure goods, settle payments, and transfer funds more conveniently. There are several reasons why we should choose cryptocurrency over credit cards. Not many people are aware of the benefits of cryptocurrency and it’s about time that they become more informed.
Cryptocurrency requires permission. The user needs to provide their consent before any payments or transfers can be done. The seller or receiver can present their receiving address while the user or buyer needs to establish the payment. The cryptocurrency user can also decide on when the payment will be made and the payment terms. This is crucial as credit card users are always at the risk of compromising their private information, particularly the card number, which can result in the automatic withdrawal of money even without their consent.
The vulnerability of credit cards. Using credit cards as a payment method can be a worrisome task. With cryptocurrency payment, merchants have no access to the user’s account or funds apart from the payment after its completion. Credit cards, on the other hand, provide merchants access to the buyer’s entire balance. The usage of cryptocurrency would decrease the possibility of card skimming, number theft, fraud and misuse of funds.
Cryptocurrency requires no setback or registration. Creating a new account with cryptocurrency is as easy as 1-2-3. Unlike when applying for a credit card, the approval time can be quite lengthy. Even then, approval is not 100% guaranteed.
A credit card requires identification. Generally speaking, credit cards are linked to the true identity of the would-be user along with any related documents. More often than not, identity checks can raise real issues during financial transactions. It could be when setting up a business account for a novice enterprise or getting entry to financial transactions requiring no requisite paperwork.
Cryptocurrency does not log any kind of transaction. Typically, credit card companies gather information about the consumer’s transaction. Moreover, they share the information to third-party companies like Google which compromises the user’s privacy. Using cryptocurrency for payment leaves no trail or access to the user’s identity.
Credit cards are incapable of peer-to-peer (P2P) transactions. Cryptocurrency is much easier to use than a credit card when it comes to paying for goods or services. With credit cards, if the merchant’s terminal experiences a malfunction, the entire transaction falls through as the payment cannot be processed.
Not all cryptocurrency impose lofty processing fees. Most cryptocurrency charge low transaction fees. Several merchants make sure to use minimum purchase cost to prevent the high expense of processing fees which confines small purchases to being paid in cash.
Erratic changes in credit card fees and terms. Due to decentralization, no one can alter the case of use which includes the terms and fees. Banks and credit card companies can make changes in the terms and fees anytime they want while merchants and users cannot appeal.
Cryptocurrency cannot be barred or sequestered. Cryptocurrency payments cannot be obstructed and the remaining balance cannot be seized. It can be released with no constraint and the balances will remain intact until the next transaction.