We have so many options today when making purchases online. Users and merchants alike can even ship directly from their home or anywhere, with the ability to generate shipping labels from their computer. Major carriers are now accepting labels purchased with cryptocurrencies from third-party crypto postage platforms. This article explores Bitcoin and cryptocurrency vs. credit cards for label payments.
Both payment methods have strengths and weaknesses. The “better” choice often depends on priorities such as cost, speed, security, privacy, and global accessibility. Understanding how crypto payments compare to credit cards in the context of shipping can help individuals and businesses make more informed decisions.
How Credit Cards Work for Shipping Payments
Credit cards are an established payment method all over the world. They remain a popular payment method because they’re easy to use, the system is familiar to everyone, and they’re widely accepted by carriers and online platforms.
To purchase a shipping label with a credit card, you can go directly to your preferred carrier’s website or use their mobile app. Authorization is instant but the transaction still has to pass through multiple intermediaries for complete processing. These intermediaries include the carrier’s processor, the card network (such as Visa or Mastercard), and the issuing bank.
One major advantage of using credit cards is consumer protection in the form of chargebacks, fraud monitoring, and purchase protection, among others. If a transaction goes wrong, for example, you have a recourse to dispute and get a refund. Credit cards are also designed to be straightforward; you don’t need technical knowledge to use them.
These advantages, of course, also come with certain drawbacks. Using a credit card involves processing fees, chargeback risks, currency conversion fees, and settlement delays. Their convenience in terms of letting you use money you don’t have can get pretty expensive very quickly with monthly interest rates. For businesses that ship frequently or operate internationally, the extra fees and settlement delays can make credit cards an impractical option.
How Bitcoin and Crypto Payments Work for Shipping
Bitcoin and other cryptocurrencies operate on decentralized blockchain networks and involve direct peer-to-peer transfers. Payments go directly from one crypto wallet to another; there are no intermediaries involved.
When purchasing shipping labels, a user has to go to a third-party crypto platform that supports major carriers; the carriers themselves don’t support crypto payments for now. You simply send Bitcoin or your preferred crypto to a specified wallet address. The transaction is validated and recorded on the blockchain, typically within minutes. Transactions are final once they’re confirmed on the blockchain.
Most crypto-enabled postage platforms allow users to cancel shipping labels and get their crypto “back” for a new/future purchase. Because crypto doesn’t involve intermediaries, they’re more cost effective. You only have to pay the blockchain network fees, even for cross-border payments. Settlement is also faster compared to credit cards.
Using crypto has its own drawbacks. It requires some initial learning and you’ll need to set up your own crypto wallet. Without banks regulating transactions, you’re in full control of your crypto which, unfortunately, also means your own protection. For most other purchases, crypto payments are irreversible.
Cost Comparison: Fees and Expenses
Cost is often one of the biggest differentiators between crypto and credit cards.
Credit card fees typically include:
Processing fees ranging from 2% to 4% per transaction.
Additional fees for international payments and currency conversion.
Chargeback fees, when applicable.
Bitcoin transactions involve blockchain network fees which are paid to validators or miners. The rate varies on network congestion, i.e., heavy network use typically leads to higher fees and vice versa. In general, crypto network fees are lower than credit card processing costs. There are no fees associated with foreign transactions.
For businesses that engage in high-volume or cross-border shipping, crypto can be a more cost-effective option.
Speed and Settlement Time
Again, authorization for a credit card payment is immediate; but actual settlement can take several days. This is because the funds often pass through several intermediary systems because they reach the merchant. For businesses, these can cause delays in accounting and fulfillment processes.
Purchasing shipping labels with a credit card takes only minutes, of course. For those who purchase in bulk on a regular basis, settlement for accounting purposes may not be an issue. For on-demand shipments, however, settlement delays may cause problems with invoicing.
Bitcoin transactions typically confirm within minutes; other crypto, like Litecoin, settle even faster. This speed facilitates faster order processing and more timely accounting. For businesses that value rapid fulfillment and predictable cash flow, crypto payments offer a clear advantage over credit cards.
Global Accessibility and Cross-Border Shipping
Crypto is not limited by geography, banking regulations, and currency systems, making it the ideal payment solution for international shipping and logistics. Crypto payments don’t come with the risk of declines or delays, nor are they burdened with conversion fees.
Anyone with a crypto wallet and an internet connection can use crypto for shipping. This makes Bitcoin and other crypto valuable for international merchants, remote workers, and customers in underbanked regions.
In comparison, credit cards are not borderless. Credit card payments go through multiple financial gateways, with additional gateways for international transactions. Needless to say, credit cards are not as accessible as crypto on a global scale.
Privacy, Security, and Fraud Risk
As a widely accepted payment method, credit cards are governed by solidly built protection systems. However, credit cards remain at high risk for fraud, data breaches, and theft. Protections are primarily focused on consumers, but merchants also face fraud-related chargebacks which can be costly and time-consuming to resolve. Finally, using a credit card involves sharing your financial information with the multiple entities involved in the transaction.
When you use Bitcoin to purchase shipping labels, you’re not required to share personal banking information. The only thing you’ll share is your crypto wallet address — a random alpha-numeric code that is not directly attached to your personal identity. Payments are secured via cryptography and recorded on the blockchain in such a way that makes them tamper-proof. Because crypto payments are irreversible, merchants don’t have to worry about fraudulent chargebacks.
Chargebacks and Dispute Resolution
Chargebacks are a double-edged sword: they offer consumer protection, but represent risk for merchants.
Credit card chargebacks allow consumers to cancel charges due to an error, damaged goods, or fraud. But a chargeback itself can be fraudulent, which can result in lost revenue and a damaged reputation for a merchant. Even if a merchant successfully disputes a chargeback, the process is often costly and time-consuming. Digital products and shipping services are especially vulnerable to chargeback fraud.
Bitcoin transactions are final and irreversible, eliminating the risk of chargeback fraud. This offers greater protection for merchants, but removes consumer dispute mechanisms. This also forces senders to always verify the accuracy of payment details to avoid errors. When purchasing shipping labels, it’s important to choose a platform with a clear refund policy. Some platforms, like Uspostage.io, allows users to cancel a label and use the crypto “credit” to purchase a new one.
Ease of Use and Adoption
In terms of ease of use and adoption, credit cards are still ahead of the game. Using them is straightforward, and all carriers and most businesses accept them.
Crypto adoption is still expanding, and using crypto requires an understanding of crypto wallets, addresses, and confirmations. Currently, major carriers don’t accept crypto payments directly. You have to use a third-party crypto-postage platform to purchase and generate shipping labels for your preferred carrier. These platforms simplify the experience with QR codes, automated invoices, and real-time confirmations.
Bitcoin and Crypto vs. Credit Cards: Which Is Better for Paying for Shipping?
There is no one-size-fits-all answer. Credit cards remain ideal for users who prioritize convenience, consumer protections, and familiarity. They work well for domestic shipping and one-off purchases.
Bitcoin and crypto payments are often better for users who value lower fees, faster settlement, privacy, and global accessibility. They are particularly advantageous for international shipping, high-volume sellers, and crypto-native customers.
The better option depends on your needs and preferences. Take note that choosing between Bitcoin/crypto and credit cards is not actually about two competing payment methods; it’s about enjoying greater flexibility.