With so many services accepting Bitcoin payments, spending virtual currency for everyday needs is becoming incredibly easy. But not every service is accepting Bitcoin for the right reasons, as some companies charge outrageous fees for accepting the virtual currency. This is strange, as Bitcoin payments are inherently cheaper compared to traditional payment methods.
OnlineTVRecorder.com – 25% Fees for Bitcoin Payments
The most expensive Bitcoin transaction fees can be found on the fringe of “services regular people might use”. Watching TV online in exchange for a monthly subscription, while also having the option to record shows, is a very niche market these days. There are plenty of people using such a service, albeit not all of them for legal purposes.
OnlineTVRecorder.com is one of those services, offering a wide variety of channels from all over Europe in exchange for a small monthly fee. Multiple traditional payments – including SOFORT, phone call, SMS and credit card – can be used to fund an account, as well as Bitcoin. But there’s not much reason to rejoice about this company accepting Bitcoin payments.
Based on the information we have received via e-mail, topping up an OnlineTVRecorder.com account with Bitcoin is subject to a 25% fee per transaction. To put this into perspective, sending 20 EUR worth of Bitcoins means a customer only receives 15 EUR in their account balance, as the remaining 5 EUR is covering “transaction fees”.
Even though OnlineTVRecorder.com is a very cheap service – rates start at 99 euro cents per month – charging a 25% fee on Bitcoin transactions is taking the piss. Any other platform will not charge a fee for Bitcoin transactions, as nearly every payment processor operates on 0% fees for the merchant. Even if there is a fee to be paid, it is minimal compared to average bank wire and card payment fees.
It is unknown whether or not OnlineTVRecorder.com processes Bitcoin payments through a dedicated payment processor, or just uses a website plugin to do so. Regardless of which option the company has chosen, outrageous fees won’t net them any Bitcoin customers in the near or distant future.
Dubious Services Give Bitcoin a Bad Reputation
Other than the high payment fees, services such as OnlineTVRecorder.com are borderline legal/illegal. Giving customers from all over the world access to channels native to select countries in exchange for money, seems like a fairly dubious scheme to say the least. However, it is up to the customer to decide whether they want to use this service or not.
From the perspective of the general public, services such as OnlineTVRecorder.com – who accept Bitcoin payments – give the virtual currency a bad name. Services that are borderline illegal and get involved with Bitcoin will hurt the public image of Bitcoin even more and that is the last thing we need.
The debacle with Silk Road and Silk Road 2.0 remains a dark period in the young history of Bitcoin and the time has come to look to the future. However, as long as fringe services like OnlineTVRecorder.com accept Bitcoin payments, that road became a lot steeper.
Images courtesy of Shutterstock, OnlineTVRecorder.com