Bitcoins are a great way to pay for certain online purchases, but unfortunately at some point you’re going to have to provide payment information to somebody if you hope to acquire some! Cash is fine for some people, but for those who would like to avoid the risk of meeting a seller in person and additional transfer fees, it is likely that you will use a credit card for your bitcoin purchase.
In the early years of bitcoin it was difficult to use a credit card for purchases because of concerns related to fraud. Sellers were wary of a credit card company’s ability to reverse payment, and buyers were hesitant to provide personal information to a website. In fact, certain areas – including parts of Asia – still do not allow or highly discourage credit card as a method of payment.
Luckily, as bitcoins become more established and security methods improve, you’ll find more and more dealers offering credit cards as a form of payment, in both a secure and easy way.
However, credit cards can carry high fees for the merchant each time they are used as a payment method, so you’ll find smaller sellers will opt for one of the other available methods to avoid incurring these transaction fees. Similarly, sellers may decide to pass some of this cost back onto you by raising their prices or charging a convenience fee. Only you can decide whether then benefits of a credit card outweigh the disadvantages.
Modern convenience has made it possible to buy bitcoins using credit cards, making things easier for both buyer and seller. Whether you use traditional payment methods or bitcoins, ALWAYS make sure you are dealing with a reputable business. Remember there is no regulation for bitcoins, so if a deal seems too good to be true, stay away – there is little to no recourse you can take to get your money back.