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Difficulties of providing a crypto payment system on your website

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Re: Difficulties of providing a crypto payment system on your website

#51

Post by pvinis »

desindol wrote: post #49
pvinis wrote: post #45

Earlier quoted context omitted.

Yes. I am proud to be one of the few that have used crypto to buy something "regular". To use that thing in the way it is promised to be, and not as gambling or scams. So yes, I'm proud to have done that.

That’s what everyone was doing in the early days. Hell, I paid a small fortune for a pizza in 2012. It still would never cross my mind to be proud to use any form of payment that’s just preposterous.

Agree to disagree, I guess. I'm glad you did use it for pizza back then, and I hope more of us use it for pizza in the near future. You are one of the few that don't just gamble and buy nfts.

Re: Difficulties of providing a crypto payment system on your website

#52

Post by zeroclip »

moffkalast wrote: post #47
quelltext wrote: post #41

Earlier quoted context omitted.

I mean, it's currency. Trading currency is pretty old, so I doubt anyone was surprised here.

Your typical currency is inflationary though, which unlike crypto generally makes it a bad long term investment.

Plenty of crypto tokens are inflationary. Some are deflationary. Some are both, based on supply and demand.

Re: Difficulties of providing a crypto payment system on your website

#53

Post by zeroclip »

moffkalast wrote: post #38
TekMol wrote: post #24

Earlier quoted context omitted.

I would love to pay with crypto. Every time I type my credit card number into some web form I think "Damn, I hope the number will not end up in some shady hands causing me trouble". I had my credit card disabled once because someone started using it to buy stuff with it around the world. What a freaking hassle. Telephone calls, letters, several days without a CC, had to change the number everywhere .. annoying. Payin…

You know that lots of card providers can generate virtual cards for free on demand these days right? Another set of details that works the same as your original card but can be used for, say, just one site and cancelled at any time if it gets misused. If that's your only gripe than that's probably the easier way than switching to an entirely separate financial system.

It is not realistic to generate a virtual card for each purchase. It creates a documentation headache as well, such as handling returns and payment proofs.

Re: Difficulties of providing a crypto payment system on your website

#54

Post by nib99 »

TekMol wrote: post #11

Let me know if I am wrong about using crypto for payments: My understanding is that a big, maybe the biggest, obstacle is taxes. In countries like the USA and Germany, the way I understand tax law is: When you buy something with crypto, that counts as a sale of an asset. So you have to document what the fair value of the coffee you bought is at that point in time, subtract what you paid for the crypto you used and th…

at least in Germany after holding 1a you have no tax to pay.

Re: Difficulties of providing a crypto payment system on your website

#55

Post by moffkalast »

zeroclip wrote: post #52
moffkalast wrote: post #47

Earlier quoted context omitted.

Your typical currency is inflationary though, which unlike crypto generally makes it a bad long term investment.

Plenty of crypto tokens are inflationary. Some are deflationary. Some are both, based on supply and demand.

Let's be frank here, just about most of them are deflationary.

Re: Difficulties of providing a crypto payment system on your website

#56

Post by Ferret7446 »

ben165 wrote: post #48
z9znz wrote: post #44

The real difficulties in providing crypto payment options is that users are generally not educated enough to use it properly. I built Bitcoin and Stellar payment systems for a client. In both cases, I generated an address for each customer and associated that address with the customer ID. By not reusing addresses, I never had the problem of not knowing who had paid and who had not. You cannot trust most people to pro…

Thanks for the insights. Two questions 1) Bitcoin needs time to transfer. How did you approve the transaction? Instantly in hoping it will go through or had the costumer to wait? 2) The problem with new Stellar addresses is, that they need to be "funded". Your sending wallet has to recognize if this address is empty to run the right function (it's not a normal transaction). Most of the wallets can't do that. They wou…

> Bitcoin needs time to transfer

Regarding this, to clear up a common misconception, regular debit/checking takes at least one day to clear (US ACH), usually 2-3 business days, while Bitcoin transactions are validated within 1-2 hours, regardless of standard regional business hours.

Re: Difficulties of providing a crypto payment system on your website

#57

Post by [deleted] »

TekMol wrote: post #24
shp0ngle wrote: post #17

The biggest error is to assume people want to pay with cryptocurrency. They just want to speculate on it; first buy, then sell. Nobody actually pays with cryptocurrency. edit: ahh it’s in the actual article. Never mind.

I would love to pay with crypto. Every time I type my credit card number into some web form I think "Damn, I hope the number will not end up in some shady hands causing me trouble". I had my credit card disabled once because someone started using it to buy stuff with it around the world. What a freaking hassle. Telephone calls, letters, several days without a CC, had to change the number everywhere .. annoying. Payin…

[deleted]

Re: Difficulties of providing a crypto payment system on your website

#58

Post by z9znz »

ben165 wrote: post #48
z9znz wrote: post #44

The real difficulties in providing crypto payment options is that users are generally not educated enough to use it properly. I built Bitcoin and Stellar payment systems for a client. In both cases, I generated an address for each customer and associated that address with the customer ID. By not reusing addresses, I never had the problem of not knowing who had paid and who had not. You cannot trust most people to pro…

Thanks for the insights. Two questions 1) Bitcoin needs time to transfer. How did you approve the transaction? Instantly in hoping it will go through or had the costumer to wait? 2) The problem with new Stellar addresses is, that they need to be "funded". Your sending wallet has to recognize if this address is empty to run the right function (it's not a normal transaction). Most of the wallets can't do that. They wou…

1 - I ran a bitcoin node, and I had a script which would poll the node every few seconds to get the status of the addresses which I knew had open orders. Any that had received a payment would get marked accordingly so I could show on the order status page. But I didn't mark the order as paid until there were 2 confs.

2 - I pre-funded each Stellar address before providing it to the buyer. Periodically later if orders never got completed I would sweep the old addresses. But it wasn't much as Stellar was only about $0.2 USD at the time.

Re: Difficulties of providing a crypto payment system on your website

#59

Post by [deleted] »

zeroclip wrote: post #53
moffkalast wrote: post #38

Earlier quoted context omitted.

You know that lots of card providers can generate virtual cards for free on demand these days right? Another set of details that works the same as your original card but can be used for, say, just one site and cancelled at any time if it gets misused. If that's your only gripe than that's probably the easier way than switching to an entirely separate financial system.

It is not realistic to generate a virtual card for each purchase. It creates a documentation headache as well, such as handling returns and payment proofs.

[deleted]

Re: Difficulties of providing a crypto payment system on your website

#60

Post by zeroclip »

This is a weird and brittle way to support crypto payments.

What should instead be done is:

1. Accept stablecoin tokens like USDC. People do not want to buy a pizza and one year later be told they could have bought a house with that same set of tokens.

2. Use smart contracts, cryptographic proofs and digital signature algorithms instead of trying to match up balances and spends in the ledger.

Example: Merchant has a product on their site with ID 1234. User purchases it for 5 USDC.

If this has infinite stock, like a Bandcamp MP3, VPN subscription, production-on-demand, the user can bypass the paywall and request access to the product by writing a signed message with their wallet proving their purchase.

If this has finite stock like a vintage clothing item or unique artwork, a smart contract can tally stock of ID 1234: decrement its quantity on each successful purchase, and increment the user’s balance of that item. Proof of payment is the same: user can just sign a message at any point proving they own X amount of the product.

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