Advantages:

Faster Transaction Speed:  Transactions take minutes.  Once a payment is made it reaches the receiver within minutes.

Lower Transaction Fees:  The transaction fee is less than one percent (1%).  This fee only applies if you choose to have priority processing to have your payment post faster or have your digital currency quickly transferred into real currency.  There is no transaction fee for normal processing.

Faster Setup and Use:  You can start usnig the system to accept payments as soon as you download and install it on your computer. 

No Upfront Payment:  You do not have to pay to gain access to the merchant system. 

Single Exchange Rate:  There is only one exchange rate across the world where for the particular digital coin that is used.

No Middleman:  There is no middleman such as a clearing company that holds and transfers the funds as in a regular credit card transaction.  Transactions are made directly between the buyer and seller.

Customer Acceptance:  More and more consumers are embracing Digital currency as a legitimate currency.  They trust Digital currencies and are willing to transact business with merchants who accepts them.

Digital Currency Transactinos are Final:  Unlike traditional currencies such as credit cards, they cannot be disputed.  Merchants don’t lose out when funds are tied up in disputes.  Merchants can decide on their own if and when to issue a refund.

Free Merchant Advertising:  Some Digital currencies automatically advertise the location of merchants that accepts their currency so that users of their currency can easily locate them.

Disadvantages:

Technology Barrier:  The use of Digital currency is entirely technology based.  Those small businesses that are not in tuned with technolog will have to get over the learning curve and embrace technology in order to take advantage of this type of currency. A computing device with a connection to the Internet will be required. 

Fluctuation in Exchange Rates:  Digital currencies trade on exchanges that sets the exchange rate.  This rate can have large fluctuations and affect the value of real currency you can exchange them for at any given time.  This fluctuation also requires more effort on the part of the merchant to constantly change their prices to stay in line with the fluctuating rate.

Hidden Fees:  Some Digital currency services could require you to taken on other services which has a fee attached to it.

Taxes:  You have to convert your Digital currency holdings into traditional currency in order to properly file your taxes. 

Tracking Income and Expenses:  Unlike using traditional currencies and Point of Sale Systems (POS) which can keep track every income and expense transaction without further effort, Digital currencies do not offer that advantage.  You have to manually track all of your Digital currency transactions so that you can accurately do your income and expense statement.

Widespread Acceptance:  Digital currencies have not gain widespread acceptance to date.  Almost all major merchants do not accept Digital currencies.  Only a small number of smaller merchants are setup to accept Digital currencies.

Security:  Since Digital currencies are unregulated and exists on computers the risk for hacking and fraud is high.  Once a fraud is committed there are no mechanisms to go after those commiting the fraud.