Why so many e-shops offer HUGE discounts if order is paid in crypto?
Why so many e-shops offer HUGE discounts if order is paid in crypto?
10%, 15% sometimes 20 and even 25% off entire order if you choose crypto as a method of payment! Where’s the trick? I just consulted my accountant today who has extended knowledge in business and crypto accountability and sellers are taxed the same rates than with orders being paid with regular money… then why does sellers push customers to pay crypto offering such discounts ? I might have an idea though, not declare those sales to the tax authorities because hardly traceable? So 100% gain? That’s the only explanation I see so far. Anybody having another idea? Cheers!
Because the crypto transaction fee can often be much cheaper than the credit card fee, have lower costs involved, especially for higher ticket items. And the cost of credit card transaction reversals stakes up on even more costs annually.
Credit card fees work as percentages. Typically between 1.5%-3.5%.
So for a $100 transaction it’s about $1.5-$3.5. For a $1K it’s $15-$35.
Whereas crypto is just a flat fee between $0 and fractions of a penny for specialized payment cryptos, to Bitcoin which right now is averaging at $2.50 if you spend directly without using LN. It’s a fraction of that if you use LN.
But also, the biggest cost for merchants are unpaid transactions, fraud, and reversed transactions.
This makes sense but as somebody who has handled credit card processing for my own and other businesses, it’s not real problem at most places. The only place where it was even a slight concern was selling cheap clothing online.
The fact that these businesses are so worried about it that they’d offer this kind of discount makes me extremely doubtful about the quality of the product/services offered.
it’s because crypto payments are irreversible, so sellers don’t have to deal with the costly nightmare of fraud and chargebacks.