As advanced in a previous article, accepting
cryptocurrencies for settlements is not a good idea for e-commerce merchants because of its volatility and a lack of
loyalty programs which act as incentives. Let’s look at more problems with
virtual money.
Universality
Cash, credit cards and debit cards are universal. In contrast, cryptocurrencies are not. While, there
might be many forms of virtual money nowadays, accepting them might be an
issue. First of all, there are not several payment gateways that can process
such transactions. Moreover, it can be difficult for clients to obtain these.
Consumer protection
Even if chargebacks are time-consuming and expensive for merchants, they are
important for the credit card eco-system since they increase consumer
confidence, which makes them more likely to purchase from you. This form of consumer
protection is not available when using cryptocurrencies.
Regulations
There are many uncertainties about the upcoming regulations linked to the
virtual money. While, several governments are contemplating taxing, banning,
limiting, or controlling cryptocurrencies, other countries are planning to make
their own form of national virtual currencies known as CBDCs
(central bank digital currencies). As such, if you are interested, it is
advised to let things settle down so as to know about the best route to
take.
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