Bitcoin is a type of online payment method that offers many advantages over other forms of payment. It's safer than credit card or PayPal, the transaction fees are much lower, and it's easier to use.
How do we determine the exchange rate?
Bitcoins are their own currency, just like US dollars, euros, or yen. As such, their exchange rate floats in relation to the US dollar. We update our exchange rate daily based on the 24-hour USD volume weighted average from bitcoincharts.com in combination with our own algorithms that adjust for periods of high exchange rate volatility and local demand. Because we do not pin our exchange rate to a single market, our offered rate may appear either higher or lower than the rates offered on certain exchanges. The rate we are offering, along with your order total, will appear in your shopping cart before you complete your order. If you choose to proceed, your order total will be locked in at the time you place your order and your rate will be guaranteed for 24 hours.
How do we process our bitcoin transactions?
Unlike some retailers who immediately convert their bitcoins to dollars using an intermediary payment processor, we use our own payment processing engine, and we do not convert our bitcoin sales into dollars. This allows us to take full advantage of Bitcoin's tremendous benefits as a frictionless and inexpensive payment system. After our system sees confirmation of payment on an order, the order is processed exactly like it would be if had been paid using credit card or Paypal.