Overstock.com, a major online retailer accepting bitcoin since January is planning to launch a rewards program for customers who pay in bitcoin.
The plan is simple: offer customers who pay in the digital currency 1 percent back of their purchase price as ‘Club O’ points, which will allow the customer to apply the rewards toward a future purchase.
In a statement to CoinDesk, Overstock.com CEO Patrick Byrne said the program is slated to make its debut in approximately four weeks. When I interviewed Patrick Byrne in November of last year, he told me that Overstock was looking to accept bitcoin in the second half of 2014. That was quickly pushed up to January, so there’s no telling if four weeks of waiting time is an overstatement. Still, it’s only a month, so the wait won’t be significant here.
The rewards program does make sense. There must be a distinct advantage to paying in bitcoin over traditional currency in that Overstock doesn’t pay significant fees to traditional payment processors.
Coinbase — who handles Overstock’s bitcoin processing — does charge a 1 percent fee when cashing out to a bank account (according to their merchant pricing page), but only after the first $1 million in sales. It’s unknown whether Overstock and Coinbase came to an agreement that differs from this scheme.
We’ll have more information on this just as soon as it becomes available.