we're sorry, but you appear to be a bot and we've seen too many requests from you lately.we enforce a hard speed limit on requests that appear to come from bots to prevent abuse.if you are not a bot but are spoofing one via your browser's user agent string: please change your user agent string to avoid seeing this message again.please wait 1 second(s) and try again.as a reminder to developers, we recommend that clients make no more than one request every two seconds to avoid seeing this message.About Latest Posts Latest posts by Dean (see all) My Long Awaited Altcoin Trading Article: STOP BUYING ALTCOINS THEY ARE IN A MASSIVE BUBBLE Orocrypt ICO: Own a share of a gold backed cryptocurrency network Wagerr Decentralized Sportsbook: ICO Crowdsale; ‘Be The House’ Oracle Opportunities There are loads of different options to choose between when you are deciding how to buy bitcoins, but one of the most convenient methods which a lot of people want to use is to make a purchase using either a credit card or debit card.

Most sites that sell bitcoins do not offer this service because of ‘charge back fraud’; this is a problem because bitcoin payments cannot be reversed, but credit card transactions are actually very easy to reverse.Because of that some people will purchase coins and withdraw them to their wallet, and then reverse the payment in an attempt to get free coins.Some people will also use stolen cards to make a purchase, meaning that the payment will again be reverse but there is no way to get the coins back from the fraudster.For a long time it was impossible to buy bitcoin with a credit card because of these problem.Fortunately, however, there are some great services around today that have found a way to offer their customers this payment option.Making a purchase in this way usually incurs a higher fee that some other methods, because the exchange themselves will have to pay the credit card company a processing fee for the transaction, so please be aware of that and consider another method if you are looking for the best possible deal financially.

But, having said that, this is a very quick and convenient way to make a purchase and if you use the right service Here are a couple of the best: Coinbase: Coinbase run one of the most popular wallet apps in the world, as well as a well-established exchange which operates in many different countries, but particularly the United States and Europe.They have had the option to add cards as a supplementary payment method for funding your account or a while now, but recently added the option to buy bitcoin directly with your debit or credit card in certain countries – just the UK ad Spain as I write this article but they do have plans to expand this to other places soon.bitcointalk walletI have used this one myself and it takes just a few seconds to make a purchase once you have opened an account, and the 3% fee seems quite reasonable to me.cost of litecoin

There is no additional verification buy your card needs to use something called ‘3D Secure’ – most major providers seem to use this as far as I have been able to tell (my Barclaycard certainly did) so it shouldn’t be an issue for most people.CoinMama: The CoinMama exchange has been offering this payment option for a lot longer than Coinbase and works in some countries that Coinbase doesn’t, such as South Africa and Russia.They have a very wide range of payment options which also includes things like Western Union and cash payments.trang web kiem bitcoinI haven’t used this service myself and couldn’t find anything about the fees in their FAQ, so make sure that you do check how much you are paying before hitting that buy button.bitcoin jewishCoinCorner: This company offers a sleek mobile wallet to consumers and eCommerce services to retailers who wish to accept digital currency on their website or through a ‘point of sale’ system in-store.bitcoin ceo missing

They have also added an option to purchase with plastic.You have to verify your card before you can use it, by having a small transaction debited from your account, then logging in to check the amount and return to the site to submit the amount debited into a form.This reduces fraud risks for CoinCorner and as long as you are in a position to log into your account and check recent transaction over the internet it really doesn’t take long to do.247Exchange: Lets you buy bitcoin and also a selection of major altocoins such as Litecoin, with an instant purchase option using credit or debit card.5 mh/s bitcoinThe site is available in English, Spanish or Russian and operates in a good range of different countries.bitcoin mit visaOne of the biggest problems for bitcoin exchanges and their customers is often making the exchange quick and easy.bitcoin forum greece

Exchanges like Canadian firm Virtex made the decision a long time ago not to accept credit cards.Fraud, in the form of chargebacks.In a credit card chargeback, a credit-card paying customer asks the issuing bank (the bank that gave them the card) to reverse a transaction made with a merchant.This can happen for a variety of legitimate reasons.A merchant may not have delivered the promised goods or service, or it may have been faulty.In some cases, a card may have been stolen and used without the owner’s consent.bitcoin dice betSometimes, however, the owner of the card perpetrates their own fraud, by trying to reverse a legitimate financial transaction.It’s effectively a pre-blockchain version of double spending.This can happen a lot on the Internet, where companies are dealing with large numbers of unknown customers half a world away.This happened to Joey Rich, who found himself at the wrong end of a steep learning curve in 2010.

Having purchased some coins, he began selling them at a profit., suffered a series of chargebacks from stolen credit cards.He explained that a combination of lost credit card revenues and chargeback fees led to a loss of his funds.“For chargebacks, credit card companies charge fees of $25 to $35 in addition to the reversal of the original payment as a deterrent.So I also got hit with a huge number of those $35 fees, which is especially painful on orders of $5 to $10.As my my bank account went into the red, I started getting hit with overdraft fees as well, so it was quite a fiasco.” Aside from the lost revenues, one of the nasty side effects of chargebacks is that credit card processors keep score.Too many chargebacks raises flags against your account.Eventually, his account was terminated, and Rich was added to a blacklist.“I didn't really know anything about credit card processing back then, and didn't understand how reversible those payments are,” he admitted.To make matters worse, he explained that the credit card processor hadn’t deposited the original $9,000 into his account in the first place, due to an administrative error.

That didn’t stop them withdrawing $7,000 in chargeback transactions and fees, though, putting him in deficit and incurring even more charges in the form of overdraft fees.It took him a year to sort it out and limp away with some money.In the interim, he had closed the exchange down while he figured out a way to handle credit cards more effectively.In 2012, Rich reopened the site, this time with identity verification features, including options for users to upload a scan of their driver's license, to log in with their Facebook account, and to be geolocated using HTML5 in the browser (which he claimed is far better than geolocation by IP address).Successful completion of all these tasks contributed to a trust score, which would help to decide whether a user’s order was processed or not.At this point, Rich was using a different credit card processor.“Those identity verification requirements helped me to do much better, and I reached about $45,000 in sales in the month of May 2013.

However, about $4,500 of those were charged back, resulting in the termination of that account.” Clearly, credit card processing for merchants is harder than it looks.The rewards are ease and convenience, though, and depending on the customer demographic, are simply too tempting for some exchanges to resist.CEX.io will happily take your credit card payments in exchange for bitcoin, confirms CIO Jeffrey Smith.“Credit card transactions are the fastest and most popular mean of payment.In order to go mainstream, an exchange has to have a credit or debit card deposit/withdraw option, among other payment methods,” he said.The processing fees for credit cards makes them financially suitable for transactions up to $1,000, Smith indicated.After that, other mechanisms may be preferable.Wire bank transfers are good for larger amounts, but the process may take up to 10 days, he said, making it less than ideal for shorter-term investments.Smith claims that the firm has lost no money at all on chargebacks.

“We avoid chargebacks by working only with the credit or debit card providers who use 3D Secure.This layer of security enables us to reduce risks of chargebacks,” he explained.3D Secure, which readers may know as 'Verified by Visa' or MasterCard SecureCode, requires a form of identification by the issuer, in addition to the merchant.Others are less trusting.One exchange CEO, who preferred not to be named, said that his demographic made it acceptable not to accept credit cards.“When you’re dealing solely with SWIFT wire transfers, as we do right now, one of the biggest benefits is that they’re irreversible.Fraud isn’t one of our worries.Something like that is more attractive to a more B2B business-focused exchange like us.” Burned by his credit card experiences, Rich now has another method of taking payments for bitcoin: PayPal.Customers paying via that service are now sent ‘bitcoin gift cards’, which are effectively paper wallets that he sends out by mail.“I left the identity verification features in, but made them less important, since security lies mainly in physical delivery of the cards.

I have been accepting an average of around $3,000 in sales per month, and have not lost any money to chargebacks yet.However, I refund quite a few payments that either look suspicious or are delivered to an address where they are never redeemed.” site.The PayPal service costs about 4% in fees, which is "irritating", he said, as it’s higher than those asked by the credit card companies.Another site, Brawker, has an ingenious solution for avoiding chargeback fraud: let conventional ecommerce players deal with it.Cyril Houri, who founded the site a few months ago, explained that it matches people wanting to buy bitcoin with those wanting to spend their bitcoin through non-bitcoin merchants online (see CoinDesk's review of the service here).If Bob wants to buy a $200 DVD player from Amazon, but wants to pay for it in bitcoin, then he can publish that fact on Brawker.If Alice wants to buy $200-worth of bitcoin, she can bid for that order.If her bid is accepted, she then buys the goods in fiat currency, giving Bob’s address.

Bob then sends the bitcoin to Alice after she sends him proof of purchase.It’s effectively an exchange order book built atop online sales of other products.The upside of this model is that the ecommerce provider handles any chargeback issues.If Alice decides to declare a chargeback on the DVD player, that’ll be Amazon’s problem (or Best Buy’s, or John Lewis’s, or whichever merchant is being used).Houri’s company doesn’t even have a credit card merchant account.It has a bank account to pay expenses, but that’s it.“You have the benefit of using the ecommerce infrastructure,” he said, arguing that the delivery of physical goods via ecommerce is often faster online than sending money via traditional methods.“Being able to piggyback on that makes it as convenient as possible.” There is some inconvenience, though.Alice can only buy bitcoins in the quantity that Bob – or anyone else on the other side of the order book – wants to spend them.That makes it hard to buy exactly the number of bitcoins that she wants.

“With traditional exchanges, the commodity at the other end is fungible.In our case the commodity is a physical good.It’s someone who wanted to buy a hat, and in the other end it’s someone that is prepared to buy that hat’s value in bitcoin.” Even Brawker is exploring stronger client verification, though.After all, any form of taking Internet payments is an exercise in risk.The more than you can decrease the risk, the better.Credit cards may have their advantages when it comes to bitcoin purchases, but they also have their drawbacks.What’s interesting is how entrepreneurs try to route their way around them.On the Internet, it’s innovation that abhors a vacuum.Disclaimer: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, CoinDesk.Credit card image via Shutterstock The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.