Topic: Why a bitcoin debit card? (Read 494 times)

I say keep the debit cards where it belongs, i.e. to the financial institutions.  Only them could issue such a bitcoin debit card, but that card would then have all the disadvantages of a regular debit card, if not more, e.g. the ability to manage your waller.  And if that's not what you want, then just transfer your bitcoins to your bank account when necessary.  There already are services for that.

Stores, restaurant, etc. who already accept debit card and credit card and will feel obliged and constrained to stick to those for a while.  That's my opinion.

Keep in mind that each transaction using a debit card cost something to the merchant, and often to the customer as well.  Credit card is even worse for the merchant.  Though merchants are happy when someone pays cash because it saves the fees mentioned above.  The downside is the need to handle the money, make sure to buy and carry enough change, count the money, make a deposit for the physical money.  And there can be many employees, so where did that $5 go, or where does it come from?

So cash can be great too.  It has both advantages and disadvantages, both for the seller and the buyer.

As for accepting bitcoins, I'd focus on encouraging the use of the new technology, rather than hiding it in the conventional one.  All the merchant really need is a QR code printed next to the cash register, and a feed (notification) for transactions that goes through.  So the customer takes his smart phone, scan the code, enter the amount and sent money.

When the transaction is seen on the network, one may wait 15 or 30 seconds to make sure it's not being double spent in person, in real time... for a low amount.  That is acceptable security.  In fact, a cashier is more likely to accept fake bills of cash than being fraud with the bitcoin transaction.  Especially if that casher doesn't take a few second to examine each bill.  A tablet, a smart phone or a small window on a POS computer can be a "view only", with or without a small wallet to quickly perform a few small refund without the manager if need be.

It can also be done so that a request money type of QR code, which is generated live and displayed on a screen to the customer, so that all he has to do is to scan it and "accept to send x BTC to y".  No need for a third party, just listening to the network.  Even some client software could be use as is for that purpose, though it's is much better to be adapted for such POS system, which is a very easy thing to do.  Otherwise, one may need a calculator for the exchange rate.

Also note that the upfront cost can be practically inexistent, so does the fixed cost, we are talking about a computer or portable device would be on anyway.   This is a huge advantage for merchants who, for instance, won't bother paying for accepting cards because it is to expensive in fees.

Yes, yes, remains the volatile (or ever increasing) exchange rate.  While that may not be solved by a debit card, that can be solved by spreading the word.  Here is what you can do:

If you are an employee and a smart phone or a tablet, ask customers "would you like to pay using bitcoins today?"

If the person say yes, then the employee himself pays for the transaction, and have the customer pay the sum of x BTC directly to him. At the end of his shift, he just need to put the right amount money in the cash drawer.

Don't be upset if the customer says no.  That may happen ;)  But you see the opportunity.  One may come back the following week, specially choose your line, enthusiastically ready to pay with his new bitcoins, a transaction that may get the next guy in line thinking.  Or, if you are a customer in the line, then you may simply wear a shirt displaying "I use bitcoins".  Therefore, if the guy in front of you want's to pay using bitcoins, then you buy his bitcoins and give him the cash value.

That would work in the street too.  The cool thing is that you any whoever it is] actually decide what your exchange rate is.  How much is your bitcoin worth for me?  How much is my cash worth to you?  Isn't that wonderful?

I know I'm going a little far here with the t-shirt, but all I mean is that the technology is out, in OUR hands.  We don't need to bother using VISA's or PLUS network.  The middle-man is not as necessary as it seems.  Just buy and sell bitcoins, show you are doing it (be visible) and encourage people to do it out.  It's trying it out and seeing it used and working that will convince people.  The more people using it, the more stable and the strongest the currency is.

So, who wants that debit card, and why?