Bitcoin Forum

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

Unbelievable, it's really too big. I never heard about incoming fee. It sounds silly, the recipient does not take any fees, that is the rule for performing bitcoin transactions. Clearly they are scams.

Yes bro,its shocking.

Registering, buying, and selling Bitcoin is completely free. LocalBitcoins users who create advertisements are charged a 1% fee for every

completed trade. When using our merchant invoicing services a fee of 0.5% is deducted from the paid invoice amount of each invoice. Also Bitcoin

network deposit fee is deducted from the invoice amount, if the invoice is paid with an external transaction. What option did you take?

This wouldn't be an isolated case. Even wallets like Xapo have fee for incoming small transactions.
http://in.xapo.com/fees/
They wouldn't want users to collect dust in their wallets.

Yes localbitcoin has started charging for incoming transaction which is not sure why they do it. I can understand of outgoing transaction, but why to charge for incoming transaction is the question. Many have started to shift the wallet from lb to different wallet.

Hope they remove the fees for incoming transaction.

Incoming transaction fee? Seriously? This is only my first time to hear such thing to use this service. When sending bitcoins you are obliged to set some fees in order for it to confirm but talking about incoming? What the heck whats the use/purpose of that fund.

Maybe because its happening to you the first time but in actual sense, its really too much because by the time say 1000 people make such payment, they then get to live fat but at the same time, I think that is the only fee they will deduct because I had same experience with one site like but what they charge then was 0.0002 flat maybe they have increased it now, I don't know but that is the only fee they will charge and when I tried transfer out of the wallet, it was free. Maybe that is what they are also implementing.

This is too much, the increasing transaction fee is causing a negative impact on the bitcoin users which may lead to the decrease in the number of users in the near future if this continues.

No even when you are withdrawing your coins from LB wallet to other wallet they are charging the outgoing transaction fees, so now they are charging for all incoming and outgoing transaction fees and even on the trading also they are charging fees. So i think it is not good for charging incoming transaction fees as they are earning commission on the trading done by the users.

If everyone jointly raise the voice then i think they may change the option.

It is not called looting but it is considered to be additional fees. This is not only in the case of localbitcoins but also true to other exchanges. The fees have tremendously went up and we will be suffering from those huge fees. Due to this kind of reason I no longer make small multiple transactions but instead I make one big transaction so I can save on fees. The problem with fees nowadays is that you can no longer make a small transaction due to higher fees. There are instances that the fees is much more higher than the bitcoins that we are going to sent. But if you think localbitcoins is the worst you will laugh if you met the exchange in the Philippines that charges you 0.002+ btc for sending btc to external wallets.

I have also noticed this. Last week, I transferred around BTC0.10 to my Localbitcoins wallet, and I received only around BTC0.099. These people are playing dirty tricks. What is this? First of all I paid BTC0.0015 to Kraken to withdraw my coins. And on top of that I have to pay another BTC0.001 to LBC, just to deposit my coins. This is crazy.

Hahhaa, this is not a problem. Indeed this now to get the level of confirmation or delivery definitely need a fairly high fee. But you don't have to worry about, if indeed your mind still assume that taking too much localbitcoin fee for the transaction then it's not a problem. Of cause you can also switch to a better place according to you. All this happened not because of the localbitcoin but because of the higher fee, make them take action is good enough
 

I never used this localbitcoins but I heard from many peoples that they have problems with localbitcoins, so its better to stay away from them maybe they scam more in near future.
Or you should send them e-mail about this

I just checked my localbitcoin account,and checked their FAQ,they actually charge a fee when deposit at the moment it's 53k satoshi It's a bit high but I don't think it's their fault if the bitcoin network is saturated I am also using XAPO wallet and they also charge a fee when you receive bitcoins.Hope that the after 1 August this problem get solved

Yeah, I also hope so when Segwit date 1 issue like this can end.

Cutting 2 times really make a loss.
I think localbitcoin is just updating their regulation. The last time I used my july in 2016 did not go through such cuts. It has been very long.

Oh gosh what kind of fee is that? That is just asking for users to leave the platform. I've never used localbitcoins before but if these are this kind of fees they have I will never even bother using them in the future. Thanks for the heads up man!

That's surprising, if they do have an incoming fee then it should be a lot lower than something like that, that's just too much. Maybe 0.0001 BTC (since they have to maintain their website somehow) but if they're taking that much (about $2 USD) for each incoming transaction then someone is looking to make a lot more money than they would be earning through "normal" means.

Might open up the doors for a competitor should the fees get bad enough.

I think I have heard about local Bitcoin fees issue before, can't recollect where I read this. At first I thought it would not be true, but now that it looks like it is true and this is indeed very very bad for the local bitcoiners I am sure there will be some sort of solution, I am. Sure where you able to contact them and find about why it so happend.

That doesn't sound good. I using localBitcoin since long time but never had such problems. Have you checked or investigated what the problem is exactly.

I think someone already post about this kind of mess about localbitcoin. So, as of now it is not fixed.
That incoming transaction fee should not be there considering they already have the outgoing fees.
This service of them should be bombarded with support ticket so that they will recognize the people who are having problems with the fees.
If not, them they should just shut it down. This is clearly a robbery for the users.

This is an extremely dumb point.  The post is a warning to others about the fact that LocalBitcoins is charging an incoming fee, and a show of distaste for LocalBitcoins' action.

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However, I do think that trading with dust like this is pointless.  LocalBitcoins is trying to prevent you from wasting your money using dust by incentivising you not to send them microtransactions.  Xapo now does the same.

I found something interesting:

"When sending to LocalBitcoins wallet, a bitcoin network fee is deducted from the deposit. The fee varies on how congested the Bitcoin Network is.
If your deposit amount is smaller than the bitcoin deposit fee, the deposit will not be processed.
The current sending fee is visible on the wallet page under the heading Incoming transactions and fees."

More info:https://localbitcoins.com/fees (https://localbitcoins.com/fees)

So it would mean that Localbitcoins is collecting their own transaction fees? So, in fact, you are charged 2 times for your tx fee? Am I getting this right?

I never use Localbitcoins anyway. They always have bad rates compared to other local exchages. Also normally when using Localbitcoins you have to arrange a meeitng somewhere for which I have no time. I use an exchange where they transfer money directly to my Credit Card.

Its actually not looting money but payment for services they are offering which is even as a result of the increase in the price of miners fee in recent times as an explanation for the high payment they are charging. If still feel its still ok to pay them that and have a smooth transactions than to fall in the hands of scammers in the process of converting to fiat which is mostly what happens when one wants to avoid the payment of fees. Also, if its something you cannot afford, start looking for alternative means.

That's why this thread was created - to argue that people should start using a competitor, and that they would be better off doing so.

You have contributed absolutely no useful information whatsoever.

So then my point still applies, with a pedantic correction from you?

"Just use another service" has never been a good argument against complaints.  The most important thing in a capitalist society is for companies to be held accountable for their actions, if you like the society to be functional.

This is one of quite a few services that have done this. Now the fee spamming is over these charges aren't necessary in the slightest. I wonder whether they'll nix these fees. Something tells me they may not.

This is some really old news they have introduce some new weird rules which doesn't make any sense to me. The reason why they charged you is because when you eill buy a small amount of bitcoins and when you withdraw those you will have to pay a 0.001 btc fees so now as you have been charged when you will withdraw they may not charge any fees

They are charging on you outgoing and incoming transaction fees and even if you are trading you are paying commission so now they are earning by all ways from the users. Just like how banks are taking money from users slowly in all ways.

I think that is how they make money in the first place. Mind you that this is a business but what I don't get is why there is an incoming fee which is irregular thing to had. Because you are like depositing them your Bitcoin which is part of the steps in order for you to use their system. With that being said I think that they are abusing their power in having several fees in order to make money out of the customers.

I wouldn't call that looting, more something like pilfering or thieving the money, assuming that they don't have any sort of incoming fee information on their website or within their ToS. It's surprising that they would take $2 from users who are putting funds into their website, and it is incredibly surprising that they are trying to take that much from users. It doesn't cost that much to run the site, assuming that they're making money off of other things they have within their business model. Then again, I haven't really used the site all that much so I wouldn't be able to know.

I don't really care if localbitcoins is looting money but I will never use it again!

There are tons of scammers and they scammed my friend so bad. We contacted their team but they said the seller sent them proofs which are ps made.

Localbitcoin has an internal tumbler and I believe that with the increasing transaction fees, the incoming bitcoin fee was added to mitigate the losses that they suffer transferring between their internal wallets. I was shocked when first added, but it isn't as much of a factor on larger transactions as it is on smaller transactions.

Hmmm....I wouldn't use them, but I'm wondering how else are they going to make money?  If the fee isn't part of their terms, then I would say they are cheating, but if the fee was part of their terms, then it's up to the user to decide if those terms are acceptable.  Read the terms and if you don't like the terms, then use a different service.

It happened to me, too recently. If you open their fees page it is not really clear, that you have to pay a deposit fee. There is a link to the wallet page but it sounds like the normal transaction fee when you withdraw. At least for me this is very misleading and even if it isn't much (especially when you deposit larger amounts there) it is not ok. At least I would expect, that you find that deposit fee on their fees page. Then you can decide, if you want to pay it or not. That they charge it at all, is not really my problem. But how they do it. This is black hat style for me.

I never had problems with localbitcoins as a buyer, and surely I will survive the deposit fee. But I certainly don't like to trust a page, that operates likes this. Imho it says a lot about the mindset behind it.

0.0008 btc it's too high fees for each incoming transaction. It's too bad if each transactions you made you lost around 2$ by localbitcoins. Anyways if you reason to buy/sell bitcoins. you should just use this forum, exactly in Currency exchange which you can set your own fees and make good deals there without paying high fees.

This is surprising I did not knew about this, stop using those centralized services they are becoming just like banks, the fact they are charging you for something that is free is outrageous, ditch them and never use their services ever again since this is completely ridiculous.

I agree with you, though currently bitcoin is growing very rapidly, but to me still leaves a question mark whether the future of bitcoin will be very bright or vice versa, but surely all hope bitcoin progress will continue to increase until it reaches its peak and can become official payment instrument.

It's not like that people are getting impacted in negative way, it's the frustration about the fees that are killing small transaction now a days. The OP wanted to say he was willing to send very less amount through the transaction but the fees are being incurred from both sides which is not worth paying because whatever he is left with after deduction is big time loss. Hope that we will get some recovery options soon.

An incoming transaction fee, they absorb no cost on that side so they hid it as a usage cost.
Seems pretty much like a front and back end segregated fund trick you pay on both the receive and send in this case instead of one or the other (lol mutual funds are in my head)

Actually this has been discussed since a long time, transaction costs are taken by local bitcoin is too big, and in fact this is very unusual, but it may have been their policy, and also unable to do anything

I've use localbitcoins before for sell bitcoin to neteller/skrill/paypal but never know there is any incoming fee maybe it's a transaction fee. I do not know if they has made a new rule but honestly i've a little hesitant about it because usually the exchanger taking a fee from withdraw.

the additional fee really too great and maybe you will pay more like that.I think you should only make the necessary transactions. At present, the fee we pay is too large. That made me feel unhappy and sure it would limit the number of transactions. More seriously, it will make  beginners to abandon

I used LocalBitCoins when I started but I've moved on (coinbase, Poloniex, Electrum, etc.). I wouldn't go back to LBC again.

Hi, we made the fee model change some time ago. The reason for the fee model change is that small deposits cost a lot for all of our users, because spending an output is more costly. People were sending small deposits to our wallet (dust), and causing the fees for everyone to increase. Note that the sending fees went much lower now after this change.

We try to make our fees go lower, but it will take some time and work.

We published this blog post when the fee model changed: https://localbitcoins.com/blog/new-bitcoin-network-fee-model/

Additionally there is information about the fees on the fees page: https://localbitcoins.com/fees

And also on the wallet page the fees are mentioned. The fee varies on depending on the bitcoin network situation. For example at this moment the bitcoin network deposit fee is 0.00036793 BTC - it has went lower recently.

But why are you charging the deposit fee when it is no related to you, it is upto the sender to pay the proper deposit and get their transaction confirmed but even when they have payed proper transaction fees you are charging them also the deposit fee, it is like one type of profit for you as you are not paying fees for our deposit then why to charge deposit fees.

This openly states that localbitcoins is looting the users who are depositing the bitcoins to sell, so you are getting profit from depositor and when they sell their also you are taking transaction charges. This is very bad status to your site.