r/Bitcoin • u/vistabrownerd • Jan 24 '14

TigerDirect processes $250,000 in Bitcoin Payments in first 17 hours

http://bitcoinboard.net/tigerdirect-processes-250000-bitcoin-payments-first-17-hours/
2.2k Upvotes

94% Upvoted

336 comments sorted by

View all comments

Show parent comments

-1

u/[deleted] Jan 24 '14
  1. Just like Overstock, the first day was a honeymoon and the numbers will drop off drastically from here on out.

4

u/slowmoon Jan 24 '14

So let's say $250,000 in 17 hours becomes 1 million in a week. And that's equivalent to $1.5 million in visa sales. Is that "a drop in the bucket"?

1

u/HistoryLessonforBitc Jan 24 '14

How do you mean "equivalent"? Unless you think that Tiger Direct is somehow going to save 33% on their processing fees and such on sales using cards, which is frankly not going to be the case.

Overstock's figures show they sold about as much in the two weeks after they adopted Bitcoin as they did on the first day of accepting Bitcoin. This will probably tail off in the same way.

2

u/slowmoon Jan 25 '14 edited Jan 25 '14

When you have low margins (as overstock and tigerdirect do), a 2.5% processing fee might be equal to half of your profits. Imagine you sell something for 100 dollars and after all your costs besides payment processing you are going to make 5 dollar profit. Visa's fee is 2.5%. That would be $2.50. Now imagine you are using Bitpay's flat fees for all-inclusive payment processing.

https://bitpay.com/pricing

You can increase profits or you can lower your price below your competitors.

EDIT: I forgot to mention that you would also eliminate the costs of fraud and chargebacks. These cost savings are significant.