Federal Trade Commission Advises Customers about Paying with Bitcoin

We love bitcoin for being secure, transparent, economical and fast when it comes to making transactions. What more? It is anonymous (or more like pseudonymous), can use it anywhere irrespective of the region as long as the recipient has a bitcoin payment processor or a wallet.  But it does have few drawbacks as well which we have to understand and use wisely. After all, we can’t have everything, or at least that’s what they say.

In no way did I imply that we should accept things for what is it and not complain, as there are solutions already available which can be used to ensure the whole process of paying with bitcoin for online and offline purchases be as convenient as using fiat currency.

The number of online e-commerce platforms have started accepting bitcoin as a mode of payment along with conventional payment options. Unlike conventional payment options credit and debit cards where there is a bank as middleman, bitcoin transactions are peer-to-peer so the sender and receiver (otherwise bitcoin payment processor will act like a middleman) will be responsible for the transaction.  In cases of dispute between a seller and customer, it won’t be possible for users to initiate a chargeback with bitcoin. Any refund or damages payable by the seller will be entirely out of goodwill or the bitcoin processor they are using.

There have been many instances where people have complained to the Federal Trade Commission about the vendors taking a long time to process the orders or cancelling the orders. In cases where they are required to refund the money, many vendors may issue an equivalent value as store credits instead of paying in bitcoin or currency.

In response to these overwhelming complaints, the Federal Trade Commission has issued a warning to customers about points to consider while paying with bitcoin for products and services. The release sounds more like an advisory than warning asks the customers to know where they are sending the bitcoins. Each site has its own return policy and the federal body requests the users to understand refund and return policies along with privacy policy to ensure the customer data collected is stored safely.  The communication also urges everyone to file a complaint with the commission in case they find some problem with the bitcoin related products or services.



I see, I think and I do… passionate about digital currency, start-ups and social good. I believe that if you mix them right, you can change the world. Find me @gautham_n on twitter or /gautham,nm on facebook

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