{"id":23426,"date":"2026-01-24T14:22:22","date_gmt":"2026-01-24T13:22:22","guid":{"rendered":"https:\/\/coincharge.io\/bitcoin-payment-privacy-why-bitcoin-lightning-is-superior-to-traditional-payment-methods\/"},"modified":"2026-01-24T14:24:00","modified_gmt":"2026-01-24T13:24:00","slug":"bitcoin-payment-privacy","status":"publish","type":"post","link":"https:\/\/coincharge.io\/en\/bitcoin-payment-privacy\/","title":{"rendered":"Bitcoin payment privacy: Why Bitcoin Lightning is superior to traditional payment methods"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768396325129{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h1 style=\"text-align: center;\" data-start=\"289\" data-end=\"380\"><strong><span style=\"color: #ffffff;\">Paying without a data trail: why Bitcoin Lightning is superior to traditional payment methods<\/span><\/strong><\/h1>\n<h2 style=\"text-align: center;\" data-start=\"382\" data-end=\"455\"><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<h3 data-start=\"382\" data-end=\"455\">Privacy when paying is no longer a matter of course today<\/h3>\n<p data-start=\"457\" data-end=\"545\">People who pay online today rarely pay with money alone.<br data-start=\"509\" data-end=\"512\" \/>They pay with data. Lots of data.<\/p>\n[\/vc_column_text][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]Name, address, IP address, payment amount, purchasing behavior, location, device information &#8211; all of this has long been standard with bank transfers, credit cards or PayPal. <strong data-start=\"718\" data-end=\"748\">Privacy when paying<\/strong> is not intended, but rather a disruptive factor.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;23381&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221;][\/vc_column_inner][\/vc_row_inner][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"807\" data-end=\"1062\">This is exactly where Bitcoin comes in.<br data-start=\"835\" data-end=\"838\" \/>And the difference becomes even clearer when making a <strong data-start=\"889\" data-end=\"936\">Bitcoin payment via the Lightning network<\/strong>. Because <strong data-start=\"943\" data-end=\"975\">Bitcoin payment privacy<\/strong> is not a marketing promise, but a direct consequence of the technical architecture.<\/p>\n<p data-start=\"1064\" data-end=\"1295\">In this article, we take a look at<br data-start=\"1101\" data-end=\"1104\" \/>which data is generated by traditional payment methods, why this data is passed on &#8211; and why Bitcoin Lightning offers significantly greater privacy for payers and merchants.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768814492005{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>YouTube: The Transparent Payer: Why your bank knows everything (and Bitcoin doesn&#8217;t)<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]We have published a video on the <a href=\"https:\/\/www.youtube.com\/@coincharge\" target=\"_blank\" rel=\"noopener\">Coincharge YouTube channel<\/a> entitled<a href=\"https:\/\/youtu.be\/PtbLCeE2EjE\" target=\"_blank\" rel=\"noopener\">&#8220;The transparent payer: Why your bank knows everything (and Bitcoin doesn&#8217;t)<\/a>&#8220;[\/vc_column_text][vc_video link=&#8221;https:\/\/youtu.be\/PtbLCeE2EjE&#8221; align=&#8221;center&#8221; css=&#8221;&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768394341577{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>Today, paying means delivering data<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"1370\" data-end=\"1576\">Many people are surprised when they hear that Bitcoin is being talked about in regulatory terms. The real surprise, however, should be <strong data-start=\"1517\" data-end=\"1575\">how transparent traditional payments have always been<\/strong>.<\/p>\n<p data-start=\"1578\" data-end=\"1825\">When paying by bank, credit card or PayPal, all payment information is passed on along the entire chain:<br \/>\nfrom the payer&#8217;s bank to payment service providers, card organizations, risk systems and the merchant.<\/p>\n[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;23377&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]This transparency is intended by law. Officially to combat money laundering and terrorist financing. Critics would add: at least as effective for comprehensive financial monitoring.<\/p>\n<p>With regulations such as <strong data-start=\"2055\" data-end=\"2086\"><a href=\"https:\/\/coincharge.io\/en\/dac8-what-does-the-new-eu-regulation-mean-for-bitcoin-users-merchants-and-wallets\/\">DAC8<\/a>, <a href=\"https:\/\/coincharge.io\/en\/bitcoin-payment-travel-rule-what-data-is-required\/\">Travel Rule<\/a> and MiCAR<\/strong>, this model is now also being applied to crypto and Bitcoin payments.<br data-start=\"2160\" data-end=\"2163\" \/>The difference: In the traditional system, this data collection has always been a reality &#8211; it has rarely been questioned.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768394381498{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>A credit card payment is not the push of a button &#8211; it&#8217;s an interrogation<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"2529\" data-end=\"2737\">A nice example was recently provided by an X-Post from &#8220;Der Helper&#8221;:<\/p>\n<p data-start=\"2529\" data-end=\"2737\">He wanted to buy a powerbank from Germany with a German credit card &#8211; delivery to New Zealand.<br data-start=\"2711\" data-end=\"2714\" \/>The payment? Rejected.<\/p>\n<p data-start=\"2739\" data-end=\"2802\">Why?<br data-start=\"2745\" data-end=\"2748\" \/>Because all the alarm bells were ringing in the background.<\/p>\n<p data-start=\"2804\" data-end=\"3075\">This is because a credit card payment is not a direct exchange between the payer and the merchant.<\/p>\n<p data-start=\"2804\" data-end=\"3075\">It is a <strong data-start=\"2903\" data-end=\"2930\">complex risk process<\/strong> with many parties involved:<br data-start=\"2954\" data-end=\"2957\" \/>card issuer, acquirer, payment network, fraud detection systems, PayPal or other intermediaries if necessary.<\/p>\n<p data-start=\"3077\" data-end=\"3106\">Among other things, the following are tested:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768394423479{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"3107\" data-end=\"3150\">\n<p data-start=\"3109\" data-end=\"3150\">Where is the buyer located (IP address)?<\/p>\n<\/li>\n<li data-start=\"3151\" data-end=\"3196\">\n<p data-start=\"3153\" data-end=\"3196\">In which country was the card issued?<\/p>\n<\/li>\n<li data-start=\"3197\" data-end=\"3225\">\n<p data-start=\"3199\" data-end=\"3225\">Who is the cardholder?<\/p>\n<\/li>\n<li data-start=\"3226\" data-end=\"3253\">\n<p data-start=\"3228\" data-end=\"3253\">Which goods are purchased?<\/p>\n<\/li>\n<li data-start=\"3254\" data-end=\"3294\">\n<p data-start=\"3256\" data-end=\"3294\">Which category does the retailer fall into?<\/p>\n<\/li>\n<li data-start=\"3295\" data-end=\"3360\">\n<p data-start=\"3297\" data-end=\"3360\">Where is the delivery made to &#8211; and does this match the identity of the payer?<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"2363\" data-end=\"2380\">What happened?<\/p>\n<p data-start=\"2382\" data-end=\"2666\">In the background, all alarm bells were ringing at the credit card company and the service providers involved. Not because a power bank is dangerous. But because the pattern &#8220;Germany \u2192 German credit card \u2192 delivery to New Zealand&#8221; occurs in many fraud scenarios.<\/p>\n<p data-start=\"2668\" data-end=\"2913\">And this brings us to an important point:<br data-start=\"2713\" data-end=\"2716\" \/><strong data-start=\"2716\" data-end=\"2813\">Credit card and PayPal payments are not direct payments between payer and merchant.<\/strong><br data-start=\"2813\" data-end=\"2816\" \/>It is a controlled payment with a built-in rewind function &#8211; and that needs monitoring.<\/p>\n<p data-start=\"3362\" data-end=\"3458\">Shipping to the other end of the world?<br data-start=\"3399\" data-end=\"3402\" \/>From the point of view of fraud systems: <strong data-start=\"3432\" data-end=\"3457\">highly suspicious<\/strong>.<\/p>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;23387&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; css=&#8221;&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768394461287{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>The real reason for this data collection: chargebacks<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"2998\" data-end=\"3256\">Numerous credit card and PayPal checks run in the background to prevent fraudulent payments. After all, if a card is stolen or a PayPal account is hacked, the perpetrator can use the data to make purchases and have the goods delivered.<\/p>\n<p data-start=\"3258\" data-end=\"3461\">As soon as the actual cardholder realizes that something is wrong, they call their credit card company or report the case to PayPal &#8211; and the payment is reversed: Chargeback.<\/p>\n[\/vc_column_text][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3463\" data-end=\"3657\">This only works because there is always an intermediary between the payer and the recipient. A middleman. An entity that not only &#8220;passes through&#8221;, but <strong data-start=\"3615\" data-end=\"3656\">can also influence payments at any time<\/strong>.<\/p>\n<p data-start=\"3659\" data-end=\"3726\">This is convenient for consumers. For retailers, it is constant stress.<\/p>\n<p data-start=\"3728\" data-end=\"3979\">Because a chargeback is not just &#8220;theft protection&#8221;. In practice, it is also a kind of &#8220;joker&#8221;:<br data-start=\"3829\" data-end=\"3832\" \/>One call, one click, one &#8220;I wasn&#8217;t&#8221; &#8211; and the retailer no longer has the amount in their account, even though the goods may already be out.<\/p>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;23379&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; css=&#8221;&#8221;][\/vc_column_inner][\/vc_row_inner][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3981\" data-end=\"4263\">And now comes the part that is rarely said so clearly:<br data-start=\"4039\" data-end=\"4042\" \/><strong data-start=\"4042\" data-end=\"4139\">For this system to work at all, it has to collect massive amounts of data and recognize patterns.<\/strong><br data-start=\"4139\" data-end=\"4142\" \/>No fraud detection without data. Without fraud detection, chargebacks explode. Without chargebacks, no credit card model.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768397959513{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>You don&#8217;t just pay &#8211; you are described<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4317\" data-end=\"4368\">Back to the New Zealand powerbank. What was tested?<\/p>\n<p data-start=\"4370\" data-end=\"4403\">More than you might think. For example:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768397996929{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"4404\" data-end=\"4449\">\n<p data-start=\"4406\" data-end=\"4449\">From where was the store visited (IP, Geo)<\/p>\n<\/li>\n<li data-start=\"4450\" data-end=\"4514\">\n<p data-start=\"4452\" data-end=\"4514\">which country and which bank issued the card (issuer)<\/p>\n<\/li>\n<li data-start=\"4515\" data-end=\"4542\">\n<p data-start=\"4517\" data-end=\"4542\">who is the cardholder<\/p>\n<\/li>\n<li data-start=\"4543\" data-end=\"4591\">\n<p data-start=\"4545\" data-end=\"4591\">Which merchant is used for purchases (Merchant)<\/p>\n<\/li>\n<li data-start=\"4592\" data-end=\"4642\">\n<p data-start=\"4594\" data-end=\"4642\">which merchant category (Merchant Category Code)<\/p>\n<\/li>\n<li data-start=\"4643\" data-end=\"4689\">\n<p data-start=\"4645\" data-end=\"4689\">Delivery address vs. cardholder address<\/p>\n<\/li>\n<li data-start=\"4690\" data-end=\"4732\">\n<p data-start=\"4692\" data-end=\"4732\">Purchase history \/ deviations in behavior<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4734\" data-end=\"5000\">All this information not only goes into a &#8220;check&#8221;, but is also stored, correlated and often passed on to several participants in the chain. This is not a conspiracy &#8211; it is simply the technical reality of the traditional payment infrastructure.<\/p>\n<p data-start=\"5002\" data-end=\"5074\">And this is where it gets exciting, because this is exactly where the contrast to Bitcoin lies.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768398055123{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>Banks are transparent &#8211; but not &#8220;just a little&#8221;<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"5141\" data-end=\"5343\">It&#8217;s similar with bank payments. Many people believe that a bank transfer is &#8220;private&#8221; because not everyone can see it. True &#8211; but in the banking system, private does not mean &#8220;data-poor&#8221;, but &#8220;centrally collected&#8221;.<\/p>\n<p data-start=\"4306\" data-end=\"4349\">In the case of a bank transfer, your bank knows:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768394561469{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"4350\" data-end=\"4367\">\n<p data-start=\"4352\" data-end=\"4367\">your identity<\/p>\n<\/li>\n<li data-start=\"4368\" data-end=\"4383\">\n<p data-start=\"4370\" data-end=\"4383\">Your address<\/p>\n<\/li>\n<li data-start=\"4384\" data-end=\"4396\">\n<p data-start=\"4386\" data-end=\"4396\">your account<\/p>\n<\/li>\n<li data-start=\"4397\" data-end=\"4420\">\n<p data-start=\"4399\" data-end=\"4420\">the payee<\/p>\n<\/li>\n<li data-start=\"4421\" data-end=\"4443\">\n<p data-start=\"4423\" data-end=\"4443\">the intended use<\/p>\n<\/li>\n<li data-start=\"4444\" data-end=\"4456\">\n<p data-start=\"4446\" data-end=\"4456\">the amount<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4458\" data-end=\"4695\">And this information is passed on: at least to the recipient bank &#8211; and if necessary to the authorities.<\/p>\n<h3 data-start=\"4458\" data-end=\"4695\">Why is KYC-Light enough?<\/h3>\n<p data-start=\"4458\" data-end=\"4695\">If you buy Bitcoin from a Swiss provider, a <strong data-start=\"4587\" data-end=\"4600\">KYC-light<\/strong> is sufficient:<br data-start=\"4601\" data-end=\"4604\" \/><strong data-start=\"5766\" data-end=\"5865\">Because if you pay by bank transfer, your own bank has already carried out this identity check.<\/strong><br data-start=\"5865\" data-end=\"5868\" \/>The necessary information is already available and is transmitted during the payment process anyway.<\/p>\n<p data-start=\"4458\" data-end=\"4695\">This is why Swiss lawmakers allow KYC-Light, as the relevant data is already available via the bank.<\/p>\n<p data-start=\"4697\" data-end=\"4734\">While the Swiss legislator prohibits double data collection, European Bitcoin providers are required to collect additional data:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768395476924{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"4735\" data-end=\"4780\">\n<p data-start=\"4737\" data-end=\"4780\">complete identification of the buyer<\/p>\n<\/li>\n<li data-start=\"4781\" data-end=\"4807\">\n<p data-start=\"4783\" data-end=\"4807\">renewed data storage<\/p>\n<\/li>\n<li data-start=\"4808\" data-end=\"4828\">\n<p data-start=\"4810\" data-end=\"4828\">Forwarding of data to other Crypto Asset Service Providers (CASP)<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]Data protection?<br data-start=\"4842\" data-end=\"4845\" \/>More like a <strong data-start=\"4854\" data-end=\"4877\">honeypot for hackers<\/strong>.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768398388335{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>A classic payment is not final<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"6478\" data-end=\"6584\">Payment by bank, credit card or PayPal is <strong data-start=\"6529\" data-end=\"6546\">never final<\/strong>, but is always subject to change.<\/p>\n<p data-start=\"6586\" data-end=\"6734\">At first glance, this seems like an advantage for the payer. In reality, this advantage comes at the price of a whole list of side effects:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768398482955{margin-left: 50px !important;}&#8221;]\n<ul data-start=\"6735\" data-end=\"6954\">\n<li data-start=\"6735\" data-end=\"6791\">\n<p data-start=\"6737\" data-end=\"6791\">Intermediaries that can block your payment<\/p>\n<\/li>\n<li data-start=\"6792\" data-end=\"6823\">\n<p data-start=\"6794\" data-end=\"6823\">Risk and behavior profiles<\/p>\n<\/li>\n<li data-start=\"6824\" data-end=\"6870\">\n<p data-start=\"6826\" data-end=\"6870\">KYC and identity data in several places<\/p>\n<\/li>\n<li data-start=\"6871\" data-end=\"6903\">\n<p data-start=\"6873\" data-end=\"6903\">Chargeback risk for merchants<\/p>\n<\/li>\n<li data-start=\"6904\" data-end=\"6954\">\n<p data-start=\"6906\" data-end=\"6954\">politically\/corporate motivated blacklists<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768397201307{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>Bitcoin payment privacy: final, direct and without intermediaries<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4305\" data-end=\"4464\">With a Bitcoin payment, there is no payment service provider that can intervene.<br data-start=\"4389\" data-end=\"4392\" \/>No hotline. No chargeback form. No central control authority.<\/p>\n<p data-start=\"4466\" data-end=\"4537\">As soon as a <strong data-start=\"4478\" data-end=\"4499\">Lightning payment<\/strong> is completed, it is <strong data-start=\"4527\" data-end=\"4536\">final<\/strong>.<\/p>\n<p data-start=\"4539\" data-end=\"4681\">A refund is only possible if the retailer and customer agree to it voluntarily.<br data-start=\"4630\" data-end=\"4633\" \/>This requires responsibility &#8211; on both sides.<\/p>\n<p data-start=\"4683\" data-end=\"4811\">This is precisely where the crucial difference lies:<br data-start=\"4730\" data-end=\"4733\" \/><strong data-start=\"4733\" data-end=\"4811\">Bitcoin payment privacy is created by eliminating the middleman.<\/strong><\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768398720833{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>Acceptance contracts: The invisible censorship of payment providers<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]Reversals are the biggest concern of credit card providers and PayPal. That&#8217;s why merchants are checked as soon as they are accepted:[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768398761205{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"7927\" data-end=\"7998\">\n<p data-start=\"7929\" data-end=\"7998\">Companies and beneficial owners go through KYC processes<\/p>\n<\/li>\n<li data-start=\"7999\" data-end=\"8047\">\n<p data-start=\"8001\" data-end=\"8047\">Products and business model are evaluated<\/p>\n<\/li>\n<li data-start=\"8048\" data-end=\"8143\">\n<p data-start=\"8050\" data-end=\"8143\">some categories are considered &#8220;high risk&#8221; and receive higher fees or are rejected<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"6386\" data-end=\"6507\">Payment providers are not neutral.<br data-start=\"6422\" data-end=\"6425\" \/>They are companies &#8211; mostly American &#8211; and are subject to political guidelines.<\/p>\n<p data-start=\"6509\" data-end=\"6716\">A real-life example:<br \/>\nA Swiss coffee roaster sells Cuban coffee &#8211; exclusively within Switzerland.<br data-start=\"6624\" data-end=\"6627\" \/>Despite this, his store is blocked because Cuban products are on US sanctions lists.<\/p>\n<p data-start=\"6718\" data-end=\"6785\">PayPal and credit card providers enforce these rules worldwide.<\/p>\n<p data-start=\"6787\" data-end=\"6818\">Bitcoin is not interested in this.<br \/>\nA <strong data-start=\"5922\" data-end=\"5941\">Bitcoin payment<\/strong> is not interested in country of origin, product category or political specifications.<\/p>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;23385&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; css=&#8221;&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768398936523{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\"><strong>Order data vs. payment data: This is often confused<\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]When ordering online, a distinction must be made between:[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768398971513{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"8926\" data-end=\"8984\">\n<p data-start=\"8928\" data-end=\"8984\">Data you need for the delivery (e.g. address)<\/p>\n<\/li>\n<li data-start=\"8985\" data-end=\"9042\">\n<p data-start=\"8987\" data-end=\"9042\">Data that you <em data-start=\"9001\" data-end=\"9033\">actually only<\/em> need <em data-start=\"9001\" data-end=\"9033\">for the payment<\/em><\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<h3 style=\"text-align: left;\"><strong>Why do even digital purchases need your address?<\/strong><\/h3>\n<p data-start=\"5787\" data-end=\"5892\">Have you ever noticed that you have to give your full address even for a digital product?<\/p>\n[\/vc_column_text][vc_row_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"5894\" data-end=\"6018\">For the merchant, the address is often irrelevant for a download, access or digital subscription.<br data-start=\"5930\" data-end=\"5933\" \/>But because <strong data-start=\"5946\" data-end=\"5981\">PayPal and credit card providers<\/strong> require it &#8211; for risk assessment.<\/p>\n<p data-start=\"6020\" data-end=\"6215\">This is not necessary for a Bitcoin payment.<br data-start=\"6070\" data-end=\"6073\" \/>If a product is provided via download, e-mail or access, the merchant <strong data-start=\"6164\" data-end=\"6214\">does not<\/strong> need <strong data-start=\"6164\" data-end=\"6214\">an address, name or date of birth<\/strong>.<\/p>\n<p data-start=\"6217\" data-end=\"6318\">This separation between <strong data-start=\"6241\" data-end=\"6257\">order data<\/strong> and <strong data-start=\"6262\" data-end=\"6279\">payment data<\/strong> is a key advantage of Bitcoin.<\/p>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/2&#8243;][vc_single_image image=&#8221;23383&#8243; img_size=&#8221;full&#8221; alignment=&#8221;center&#8221; css=&#8221;&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768394790037{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"6825\" data-end=\"6865\"><strong>Lightning: Privacy by design<\/strong><\/h2>\n<h2 style=\"text-align: center;\" data-start=\"6867\" data-end=\"6989\"><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"6135\" data-end=\"6275\">With Bitcoin, the payment is structured differently. It is not designed as a &#8220;retrievable&#8221; payment with a central arbiter, but as a direct transfer of value.<\/p>\n<p data-start=\"6277\" data-end=\"6471\">Anyone who transfers their Bitcoin to a <strong data-start=\"6304\" data-end=\"6331\">self-managed wallet<\/strong> and uses a <strong data-start=\"6365\" data-end=\"6398\">self-custody Lightning Wallet<\/strong> for payments can then pay without disclosing personal data.<\/p>\n<p data-start=\"9818\" data-end=\"9933\">If you use a self-managed wallet, much of the data that PayPal &amp; Co. collect simply does not exist.<\/p>\n<p data-start=\"9935\" data-end=\"9964\">The process is important here:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768399406069{margin-left: 50px !important;}&#8221;]\n<ol data-start=\"9966\" data-end=\"10284\">\n<li data-start=\"9966\" data-end=\"10051\">\n<p data-start=\"9969\" data-end=\"10051\">You buy Bitcoin from a broker (yes, data is collected there &#8211; due to regulation).<\/p>\n<\/li>\n<li data-start=\"10052\" data-end=\"10180\">\n<p data-start=\"10055\" data-end=\"10180\">You transfer the Bitcoin to your self-managed wallet (hardware wallet such as BitBox, Trezor or Ledger &#8211; depending on the setup).<\/p>\n<\/li>\n<li data-start=\"10181\" data-end=\"10284\">\n<p data-start=\"10184\" data-end=\"10284\">If you want to pay, you transfer an amount to a self-managed Lightning Wallet.<\/p>\n<\/li>\n<\/ol>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"10286\" data-end=\"10466\">And the following applies to these transfers:<br data-start=\"10316\" data-end=\"10319\" \/><strong data-start=\"10319\" data-end=\"10376\">No personal data is sent.<\/strong><br data-start=\"10376\" data-end=\"10379\" \/>Because there is no customer account structure that binds identity to every payment.<\/p>\n<p data-start=\"10468\" data-end=\"10571\">If you then pay by Lightning, the retailer can only receive what you have to give him anyway:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768399451418{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"10572\" data-end=\"10610\">\n<p data-start=\"10574\" data-end=\"10610\">for shipping: delivery address (logical)<\/p>\n<\/li>\n<li data-start=\"10611\" data-end=\"10688\">\n<p data-start=\"10613\" data-end=\"10688\">for digital products: often just an e-mail or sometimes no e-mail at all.<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]And back to the New Zealand delivery:<br data-start=\"10912\" data-end=\"10915\" \/>With Bitcoin, a merchant does not have to worry that a chargeback will come weeks later because &#8220;the card was stolen&#8221;.<br data-start=\"11034\" data-end=\"11037\" \/>This reduces the need to squeeze delivery addresses into risk models. A New Zealand address is then not automatically an alarm signal &#8211; but simply an address.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768395776392{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"7546\" data-end=\"7604\"><strong>Conclusion: Privacy is not a bug &#8211; it&#8217;s a feature<\/strong><\/h2>\n<h2 style=\"text-align: center;\" data-start=\"7606\" data-end=\"7770\"><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]Bitcoin Lightning offers something that traditional payment systems have systematically abolished: <strong data-start=\"7701\" data-end=\"7769\">Privacy through technical separation of payment and identity<\/strong>.<\/p>\n<p data-start=\"11486\" data-end=\"11528\"><strong data-start=\"11486\" data-end=\"11518\">Bitcoin payment<\/strong> means <strong data-start=\"11486\" data-end=\"11518\">privacy<\/strong>:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1768399552395{margin-left: 50px !important;}&#8221;]\n<ul data-start=\"11529\" data-end=\"11754\">\n<li data-start=\"11529\" data-end=\"11587\">\n<p data-start=\"11531\" data-end=\"11587\">Clear separation between order data and payment data<\/p>\n<\/li>\n<li data-start=\"11588\" data-end=\"11641\">\n<p data-start=\"11590\" data-end=\"11641\">No automatically enforced identity disclosure<\/p>\n<\/li>\n<li data-start=\"11642\" data-end=\"11700\">\n<p data-start=\"11644\" data-end=\"11700\">No central authority to reverse payments<\/p>\n<\/li>\n<li data-start=\"11701\" data-end=\"11754\">\n<p data-start=\"11703\" data-end=\"11754\">Fewer data hoards &#8211; fewer honeypots for hackers<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"11756\" data-end=\"11921\">For merchants, this means: less chargeback risk, less payment censorship, more planning security.<br data-start=\"11858\" data-end=\"11861\" \/>For payers, this means: more control over their own data.<\/p>\n<p data-start=\"7333\" data-end=\"7450\">Bitcoin Lightning shows that payment can also work differently:<br data-start=\"7403\" data-end=\"7406\" \/><strong data-start=\"7406\" data-end=\"7450\">minimalist, direct and data-saving<\/strong>.<\/p>\n<p data-start=\"7452\" data-end=\"7613\">Just as Satoshi Nakamoto envisaged in the white paper.<br data-start=\"7508\" data-end=\"7511\" \/>And this is precisely why Bitcoin is a step forward in digital payment transactions.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1768396325129{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;] Paying without a data trail: why Bitcoin Lightning is superior to traditional [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23353,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[58],"tags":[],"class_list":["post-23426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accept-bitcoin"],"_links":{"self":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/23426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/comments?post=23426"}],"version-history":[{"count":4,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/23426\/revisions"}],"predecessor-version":[{"id":23432,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/23426\/revisions\/23432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/media\/23353"}],"wp:attachment":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/media?parent=23426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/categories?post=23426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/tags?post=23426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}