Merchants considering crypto amidst high fees of Visa and Mastercard
- More merchants are turning to cryptocurrencies as payment options for their customers.
- Merchants may consider other altcoins due to the high fees of both Bitcoin and Ethereum.
- Crypto assets are also paperless like credit cards, but they offer an additional benefit of decentralization.
Card payment giants Visa and Mastercard are planning to raise their fees for some type of credit card purchases. The hype in fees may come in April and merchants are already considering a shift towards crypto adoption as a payment option. Although transactions in crypto assets have their fees, they are much smaller than the proposed card fees.
Retailers, restaurants, and other merchants have been hit by the pandemic and they are looking for a cheaper alternative to get payments for their services.
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The swipe fees merchant pay credit card companies after any purchase by a customer are always higher for online purchases. Most merchants pay roughly 2% of the credit card purchases of their customers.
But with the expected hype in fees, merchants are now looking to offer cryptocurrency payment options for their customers.
Some cryptos also have high fees
Crytocurrencies like Bitcoin (BTC) and Ethereum (ETH) have been criticized for their unusually high transaction fees. As a result, merchants are looking for answers on other altcoins who they believe are much cheaper than either Bitcoin or credit card fees. Customers of the merchants are also not aware the merchants pay a percentage of their credit card purchases as fees.
Crypto assets offer decentralized assets
As concerns of COVID-19 and its prevention too center-stage last year, economists abruptly changed paths. Now, many businesses who are often okay with offline payment options have joined the online payment gang. As a result, there are more users taking credit cards as payment option than cash payments. It has given rise to more card users, which has led to an upward review of the fees on merchants.
As the adoption of cryptocurrency as payment option keeps increasing, there are expectations that some merchants can turn to cryptos with lower transaction fees.
Like credit cards, crypto assets are also paperless. Their decentralized nature even give them an advantage over credit card options.