Published on: 2015-07-17T15:47:24+00:00
A Bitcoin Improvement Proposal (BIP) has been introduced to address the issue of merchants not being able to determine the exact exchange rate they will receive when accepting Bitcoin as payment. Currently, customers are able to choose any exchange rate they prefer, making it difficult for merchants to ensure they receive the correct amount. The BIP suggests that customers' wallets should be able to determine the exact rate offered by the merchant. Merchants would generate a QR code with their address, and when customers wish to pay with Bitcoin, they would scan the QR code and pay the amount specified by the merchant. The merchant would then receive an SMS notification confirming the payment. This proposal assumes that staff members do not have any app and simply ring up the customer in their standard point-of-sale system, informing them of the fiat amount they must pay. It also assumes that the merchant intends to convert the coins to a service or exchange, and therefore needs to use the rates from that particular service or exchange. While some merchants may be willing to trust the customer, especially for small food items or repeat customers, the BIP aims to provide a more reliable method for determining the exchange rate. The BIP acknowledges that there are various services available that provide SMS notifications for Bitcoin transactions to a specific address. The BIP does not address the method by which merchants should be notified of completed payments, as this is left up to their discretion. However, it suggests that requesting dollar amounts from customers can lead to problems, whereas their proposed service would provide an SMS notification indicating that the payment has been completed, along with the amount in the fiat currency. The BIP aims to create a user-friendly solution for merchants, allowing them to accept Bitcoin without the need for extensive training or the presence of a Bitcoin enthusiast. It acknowledges that while lack of internet access may not be a major concern, the issue lies more with staff members not being properly trained on how to use apps or the internet. Even with training, staff members may forget if they haven't encountered a Bitcoin customer for some time. This conclusion is based on firsthand experience and feedback from both Bitcoin customers and merchants. In another discussion on the bitcoin-dev mailing list, it was mentioned that using arbitrary BIP numbers could cause confusion if those numbers are assigned later. David Barnes had chosen the next available number for his proposed file but stated that the number was not important and could be changed. Micha Bailey raised concerns about whether Greg had assigned the number and advised against using arbitrary numbers, particularly if they are similar to ones already assigned. Furthermore, there is a concern regarding how cashiers can verify successful payment if both they and the customer need to scan a new QR code. While Bitcoin payment notification services via SMS are available, it may not be effective in facilitating in-person Bitcoin purchases. Overall, the BIP0074 draft proposal aims to simplify Bitcoin payments at physical shop locations. It addresses the need for merchants to have an app to calculate Bitcoin payments and offers a simpler solution by allowing merchants to specify the exchange rates they are using, which customers can then verify and pay accordingly. The proposal aims to benefit businesses that do not receive enough Bitcoin transactions to justify training sessions or dedicated hardware. The complete draft proposal can be accessed through the provided GitHub link, but it should be noted that it is subject to potential changes.
Updated on: 2023-08-01T14:22:40.443804+00:00