Overstock becomes first major online retailer to accept Bitcoins

Shawn Knight

Posts: 13,774   +141
Staff member
It’s official: Overstock.com is now the first major online retailer to accept Bitcoin as a payment method. The company made a promise late last year that they would begin accepting the controversial virtual currency within the first half of this...

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Posts: 441   +92
Huge step. It just tells me that if I buy bit coins my money will not be a waist. I can buy an SSD or something.


Question about the bitcoin currency. It keeps change everyday and even in hours. Do they keep change the price of goods or just stick to it even though bitcoin currency went down or up?


Most of these businesses use a payment processor such as BitPay or Coinbase, I believe overstock is using Coinbase in particular. How these processors work is similar to CC merchant networks, they charge a small fee and instantly convert any portion of Bitcoin from 0 to 100% to typically USD. This basically puts the company at no risk as it is pegged at a current price:bitcoin ratio and instantly cashed out at that price. Also with Bitcoin there is no function of a chargeback, so the retailers gain margins from fraud prevention.