What’s the difference between crypto and credit card payments? - Crypto in Plain English – Episode 22 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

You’ve probably asked yourself - now that you understand crypto, how does “old school” credit card money actually work differently?

Let’s look behind the scenes of credit card payments. When you swipe your card buying something, your card info gets transmitted to the “network” - for example VISA - which in turn communicates with your issuing bank to check that you have money. This happens on closed channels only they have access to. When the payment processes, everyone in that chain takes a fee - usually close to 3%, and the merchant has to pay for that. Credit card companies can charge that, because they have no competition. And they can change their terms whenever they want to: Higher annual fees, or more interest - it’s outside of your control.

You see: While crypto has the potential to remove the middle man, save everyone a bunch of high fees, and create a fair system where you set the rules, Credit Cards - at least in many developed countries are still often the better or easier alternative because they are accepted everywhere and can process thousands of transactions per second, something most blockchains still struggle with.

But that’s also why we are building cryptohunt.it - to help everyone understand crypto, and for crypto to become mainstream.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.