The $148 Billion Swipe Fee Killer
The cost of credit card processing is a massive economic burden on U.S. merchants, totaling over $148 billion annually. While consumers are often unaware of these fees, businesses typically pay between 1.5% and 3.5% of every transaction. For a small business operating on a thin 5% profit margin, a 3% card fee can consume 60% of the potential profit. This is why I'm so happy that Square now allows Businesses to accept Bitcoin payments. My only concern is the trade-off with fraud protection offered by credit card companies. If someone were to figure out how to access and use my QR code or the tap-to-pay feature, there is no system to reimburse me for the lost funds. Also, using Bitcoin to purchase goods or services is treated by the IRS as an exchange of property, making it a taxable transaction that can result in a capital gains for the customer. Hopefully, Congress will provide relief for this issue soon, through the CLARITY Act, which could allow for de minimus transactions to be excluded from capital gains taxes.
