16/05/2015 Update to this post: Payment issue is clear now and we are back to credit cards after extensive polling, but we found the easiest way to pay online is after purchasing bitcoins, transfer your bitcoins to a block chain wallet instead. https://blockchain.info/ . The current software being used only allows a 1 hour window for the bitcoins to transfer to us
16/06/2016 Update to this post: Some of this information is now outdated. In the US, Coinbase, and Circle offer purchases with credit cards. Bittylicious,CoinCorner and Coinbase offer this service in the UK, accepting 3D Secure-enabled credit and debit cards on the Visa and MasterCard networks. Click here for a guide to all the bitcoin providers.
So over the past week or two, we have looked at different ways of not using Paypal after paypal unexpectedly froze our account with operational money in it.
It’s been tough, finding an alternative that will allow the continue sale of our products. We liked Paypal a lot so its sad they decided to finally screw us over.
So in the meantime – we would like to endorse the use of bitcoins. As the way to pay, we know its not the most convenient way to pay in the world, but we are really backed into a corner here. We hope you will give this cyber currency which is being used in the billions a chance.
This email explains what bitcoins are, how to protect yourself and how to buy and spend bitcoins.
What are bitcoins and why are they good?
Bitcoin is a decentralized digital currency based on open-source, peer to peer internet protocol. They are money that is encrypted in a unique code – each bitcoin is a unique encryption that can be stored, transferred, bought. No two bitcoins are the same and once generated they are unique.
Bitcoins are stored in a digital wallet online or in your computer, and when you use them you transfer them directly to the merchant. Bitcoins are safe and simple.
It can be exchanged via digital means through the computer and through the internet. As a bonus, bitcoin has no intermediate financial institution, the coins are transferred peer to peer digitally with no central bank. This means a big boycott to big banks and various institutions that “control all the money”.
It is a widely used alternative currency and accepted by various merchants. You can even get debit cards for bitcoins now. This is great because bitcoins are total free of “middle men” and interest earners who gamble away your money.
Why is Khemcorp switching to bitcoins?
Bitcoins are pseudo-anonymous, how you spend your bitcoins is your business and your business only, there is no middle person seeing what you are buying other than the merchant and the wallet owner. To expand Khemcorp has to move towards this to increase the amount of products we can offer, this cuts out the middle people holding the money hostage, which is bad both for seller and buyer. They generally do this so they make interest on the money and on fees.
The other reason – because our paypal account is frozen, also because of fear of prosecution most payment gateways do not allow the sales of chemicals, non prescription or prescription, even research chemicals are banned. This is because these products are considered high risk and they are scared of legal fallout.
In the past Paypal worked well, especially since it guarantees the buyer they can refund the money back, whilst we have only refunded money once ever, we still liked this future. However as we have said Paypal and other similar alternatives are no longer considerable to us.
How do I make a purchase using bitcoins?
1) Firstly you need to buy bitcoins at an exchange here is a list of the best ones: http://bitcoinexchangeguide.com/
For Direct Bank Purchase (Instant) we like Coinbase https://www.coinbase.com
For Credit Card Purchase we like Trucoin (also known as bitcoin source in above pic) https://www.trucoin.com
Oversea Customers (More Cumbersome Registration than US):
For Credit Card Purchases: http://www.coin.mx/
For Direct Bank Purchases: https://www.anxpro.com/
Alternatively: after you buy coins, you can also send your bitcoin to your own wallet on your computer. We recommend Electrum, which is developed open source by some very smart people who has worked on bitcoin for a long time. Not recommended for people who find the idea of bitcoins baffling.
This is safer for those who are paranoid about their bitcoins being on an exchange.
2) Purchase your product at Khemcorp and select the bitcoin option and confirm.
3) An email will be sent with the bitcoin wallet “address” (khemcorp wallet code) go to your exchange and press send/withdraw bitcoins and paste the code. Here is example of the payment email:
4) Your order is complete, we will ship as we would for a normal order.
How do i work out exchange rates?
You can just type in Google. E.gEtype in google search bar – “250usd in bitcoins”
(Don’t include the commas.) : )
What are the risks and annoyances?
Bitcoins are volatile in value and a relatively new form of currency. So do not keep a large amount of bitcoins, I suggest to never keep more than 200USD in a wallet, unless you want to invest in bitcoins in the long term, which some consider a good investment as more people switch to cyber currency. Also the exchanges holding the bitcoins have other vested interested as well similar to the big banks on wall street.
If you are interested in bitcoins for investment please read more on it and on how you can store these coins in a cyber wallet like Electrum. The security risks of holding large amounts for the computer challenged (most of us) probably do exist.
Direct transfer of coins has no buyer protection, however we will maintain the exact same standards of customer service as we have had when we were with Paypal.
Process is cumbersome, requires registration at exchange and payment in multiple steps – we are surprised nobody has invented a better way to charge bitcoins yet. This is likely because bitcoin is being increasingly regulated by the big banks via the government, so its in their interest that you have to buy on a legal exchange.
Joey – Khemcorp