Gold Dealer Now Takes Bitcoin Instead of Credit Cards
In an effort to prevent credit card fraud on the sale of gold, the owner of Agora Commodities has decided to do away with credit card payments in favor of Bitcoin. The dealer will no longer be processing payments with credit cards due to their proven vulnerability and risk.
“What we had to do to protect ourselves against card fraud, we no longer have to do with Bitcoin–and that saves us on costs,” owner Joseph Castillo told CoinDesk.
Agora Commodities has already generated over $10 million in revenue through Bitcoin since it made the switch in payment method in January.
Castillo also has plans of creating a Bitcoin conversion program through his business, allowing for straight fiat to Bitcoin conversions over time.
“Bitcoin fits perfectly with gold and silver, right? So if people come to the site and want to buy gold and silver, why wouldn’t they want to buy Bitcoin from us as well?” Castillo said.
While the switch to Bitcoin may seem a bit unorthodox, it may make sense for a business selling gold online. The money for the transactions is instantly available, and there is no worry about credit card fraud.
But as the CFPB pointed out in a consumer advisory earlier this month, using bitcoin or any digital currency comes with its own set of concerns.
The CFPB warned consumers of “significant risks”, noting that virtual currency deposits are not federally insured or backed by the government, and are targeted by scammers and hackers. The agency also underscored the high fees and volatile exchanges rates, pointing out that the value of Bitcoin dropped as much as 80% one day this year. Bitcoin kiosks lack many of the safeguards commonly associated with ATM machines.