Xapo starting to charge outgoing transaction fees

[flower1024]

Xapo has gradually tightened his terms of service for a few months ago when they set a minimum amount to carry out a transaction, which made this company inconvenient for micropayments. I am no longer convinced at this point if the service of Xapo is so good as to continue to keep my coins there.

Why do you think like that they are not good to keep or use their service?

Bitcoin transaction fees went up.  So all these companies now can't afford to lose every day for all these transactions. I'm also using them for more than two years and never had any issues and mostly used them for everyday transactions because of no fee and quick transactions. Also using their debit card to withdraw cash from ATM. They got slightly higher fees but so far so good and will continue using their service.

[freedomno1]

Hi,

We have an important announcement about your Xapo account that will affect you - so please read!

In the next couple of days, all Xapo users will begin to pay the miners fee themselves in order to send transactions out of Xapo.

No portion of this fee goes to Xapo, it is simply the fee that needs to be paid to miners in order for an outgoing transaction to be processed via the bitcoin network! This fee will be dynamically calculated based on the current network conditions and will be paid by you at the time of the transaction.

Due to the increase in transaction volume of the bitcoin network, we'd like to give our users some control over their transactions. That being said, Xapo will give you the ability to select which type of fee you'd like to pay - a standard or high priority fee - thus allowing you to choose how quickly you'd like for your transaction to be processed!

Please keep in mind that this will apply to outgoing transactions that touch the blockchain, but all Xapo to Xapo payments will still be free of charge!

Thanks for your understanding,
The Xapo Team

This is an email that I received from Xapo saying that from the next couple of days I cannot send transactions without any fee...

Do you agree with their decision? I personally believe that a big part of their business was from people wanting to do a lot of micropayments, because coinbase, coinjar and other online wallet giants have added fees and they were the only ones left yet to add a fee. But obviously that probably hurt them a lot and set them back on a lot of extra income as transaction fees skyrockets.

Your thoughts?

It really can't be helped the fees that they would need to absorb are large so providing free transaction services in Bitcoin is becoming a real hassle. The difference from paying a penny before to a dollar per transaction just means it is not profitable or sound business to absorb those costs. I actually commend them for holding out this long with the fees as they are.
Until we solve the real issue of size that policy will remain in effect and people will likely start to demand we do something so its useful in a sense, until a route for Bitcoin is decided the market will pay.

[xLays]

I received that email too. Well that will be a great move for everyone to confirm our transaction fast.

[mrjoy15]

I received that email too. Well that will be a great move for everyone to confirm our transaction fast.

I think it's become problematic, especially the newbie. They almost earn little, use faucet or other small task, so it can't accept anymore. Just imagine what his feeling after see that a half of his total income were vanished from the wallet incoming or outgoing fee though mainly the network fee.

[shane]

this is very bad news for me, im using bitcoin for some little transaction, sometimes i want to top up my mobile number, but with curent fee to transaction, im not use bitcoin for top up my number phone again

[ultrloa]

Maybe those charges has been taken up so that the transaction would become more faster since we know blockchain conformation got a huge delays nowadays and putting some huge network fee can be an immediate aid for that so the transaction with them will be done easily. And certain exchanger rises their withdrawal fees also so theirs no doubt that other sites will ask for bigger more fee's also.

[salmanahmedone]

Xapo has gradually tightened his terms of service for a few months ago when they set a minimum amount to carry out a transaction, which made this company inconvenient for micropayments. I am no longer convinced at this point if the service of Xapo is so good as to continue to keep my coins there.

Why do you think like that they are not good to keep or use their service?

Bitcoin transaction fees went up.  So all these companies now can't afford to lose every day for all these transactions. I'm also using them for more than two years and never had any issues and mostly used them for everyday transactions because of no fee and quick transactions. Also using their debit card to withdraw cash from ATM. They got slightly higher fees but so far so good and will continue using their service.

I was using XAPO only for the reason of no tx fee on transactions. Now we will be needing to search any other service providers who offer free tx fee for trans.  Any idea on this ?

[BitHodler]

Xapo has gradually tightened his terms of service for a few months ago when they set a minimum amount to carry out a transaction, which made this company inconvenient for micropayments. I am no longer convinced at this point if the service of Xapo is so good as to continue to keep my coins there.

Why do you think like that they are not good to keep or use their service?

Bitcoin transaction fees went up.  So all these companies now can't afford to lose every day for all these transactions. I'm also using them for more than two years and never had any issues and mostly used them for everyday transactions because of no fee and quick transactions. Also using their debit card to withdraw cash from ATM. They got slightly higher fees but so far so good and will continue using their service.

I was using XAPO only for the reason of no tx fee on transactions. Now we will be needing to search any other service providers who offer free tx fee for trans.  Any idea on this ?

In current times basically every online wallet service has cut out free outgoing transactions due to the high costs.

Instead of relying on these services, you better start including proper fees with every transaction you send out. I know that the fees are on the far higher side, but really, there is no other option left.

It's a matter of adapting to the situation because things are likely to become worse as miners and other entities keep spamming the network for their own benefit.

[PokerFace3]

Xapo has gradually tightened his terms of service for a few months ago when they set a minimum amount to carry out a transaction, which made this company inconvenient for micropayments. I am no longer convinced at this point if the service of Xapo is so good as to continue to keep my coins there.

Why do you think like that they are not good to keep or use their service?

Bitcoin transaction fees went up.  So all these companies now can't afford to lose every day for all these transactions. I'm also using them for more than two years and never had any issues and mostly used them for everyday transactions because of no fee and quick transactions. Also using their debit card to withdraw cash from ATM. They got slightly higher fees but so far so good and will continue using their service.

First Coinbase did it and now xapo has put a fee on the end user who use their services. Seeing the minimum value of a good Tx fee is almost a dollar, XAPO cant afford a dollar expense of each transactions. I have been using XAPO for more than two years and will continue to use XAPO  even after their decision of receiving tx fee from the customers as I am finding their services more useful and secured as per my past experiences.

[erikalui]

I don't agree with the decision of xapo as they will charge fees depending on the transaction size that we can't decide. Sometimes we may have just one-two inputs but they would charge a big fee of 300-500 sats as that's the fee they used to pay for my transactions earlier. Same goes will coinbase too that charges 0.0004-0.0005 fee for transactions of any amount. I can understand that they can't afford now to pay the fee but since they don't give the users any control over the wallet, it's not feasible to use them.

[dustboy]

Xapo has gradually tightened his terms of service for a few months ago when they set a minimum amount to carry out a transaction, which made this company inconvenient for micropayments. I am no longer convinced at this point if the service of Xapo is so good as to continue to keep my coins there.

Why do you think like that they are not good to keep or use their service?

Bitcoin transaction fees went up.  So all these companies now can't afford to lose every day for all these transactions. I'm also using them for more than two years and never had any issues and mostly used them for everyday transactions because of no fee and quick transactions. Also using their debit card to withdraw cash from ATM. They got slightly higher fees but so far so good and will continue using their service.

I was using XAPO only for the reason of no tx fee on transactions. Now we will be needing to search any other service providers who offer free tx fee for trans.  Any idea on this ?

I think there is no other wallet with no sending fees for now, the only way to reduce transaction fee is by convert our btc to altcoin such as ltc/dash. It is what I do lately, bitcoin transactions is going crazy so we should be smart in order to avoid paying to much tx fees.

[cicizhang]

Hi,

We have an important announcement about your Xapo account that will affect you - so please read!

In the next couple of days, all Xapo users will begin to pay the miners fee themselves in order to send transactions out of Xapo.

No portion of this fee goes to Xapo, it is simply the fee that needs to be paid to miners in order for an outgoing transaction to be processed via the bitcoin network! This fee will be dynamically calculated based on the current network conditions and will be paid by you at the time of the transaction.

Due to the increase in transaction volume of the bitcoin network, we'd like to give our users some control over their transactions. That being said, Xapo will give you the ability to select which type of fee you'd like to pay - a standard or high priority fee - thus allowing you to choose how quickly you'd like for your transaction to be processed!

Please keep in mind that this will apply to outgoing transactions that touch the blockchain, but all Xapo to Xapo payments will still be free of charge!

Thanks for your understanding,
The Xapo Team

This is an email that I received from Xapo saying that from the next couple of days I cannot send transactions without any fee...

Do you agree with their decision? I personally believe that a big part of their business was from people wanting to do a lot of micropayments, because coinbase, coinjar and other online wallet giants have added fees and they were the only ones left yet to add a fee. But obviously that probably hurt them a lot and set them back on a lot of extra income as transaction fees skyrockets.

Your thoughts?

OMG, i hate those site when they get some known, they will start keep charge lot of type fee.

[alyssa85]

OMG, i hate those site when they get some known, they will start keep charge lot of type fee.

How else do you think they make their profits? There ain't no such thing as a truly free service. They might have reduced/no fees initially to build their membership, but after that it is business as usual.

[Kotone]

because bitcoin price is so high and its crazy if they don't start getting some fees when people do transaction they need it for the better services and for the future then. If they don't charge those outgoing transaction fee where they do get some support?

[frowsiter]

I think xapo is right at their own place because they also have to do the business and maintain their position in the living market. Today the bitcoin is getting heavier in its value and miners are slowing down. This is leading to longer confirmation timings and fees ultimately getting intolerant. Xapo might be needing to cover these charges so that's their loss. If they keep doing that then they may end up with out of business situation. So this is the part where we should understand our very beloved wallet
 :-)

[itsArtie]

Man this is unbelieveable, I just went to send $20 to other address and had to choose between standard and high priority miners fee. It's $4 for standard and $6 fee for high priority.. that's CRAZY. If these numbers happen next time I decide to send some money I'm giving up on Xapo, I've never seen such high fees.

[rozee]

their decision to give fees is reasonable but the fees is too high just for small transaction i sent 0.002 btc from xapo to other address the fee is 0.0014 btc although they give higher fee to the miner than that amount but for me 0.0014 btc is too high so from now i am quit from xapo

[Ludwig Von]

their decision to give fees is reasonable but the fees is too high just for small transaction i sent 0.002 btc from xapo to other address the fee is 0.0014 btc although they give higher fee to the miner than that amount but for me 0.0014 btc is too high so from now i am quit from xapo

As I am a "Dust-bug" this makes Xapo useless for me. Fees are prohibitive. End of Xapo for me.

[richardsNY]

I am a "Dust-bug"

By you stating that, I assume that you are farming your way through many faucets as daily routine? Isn't it a pointless practice at current levels, and knowing that the fees are 3-5 times higher than your actual faucet "earnings"? Seriously, in order to spend dust that took you a few days to collect, it will cost you an additional 10 days of faucet farming just to collect the fees....

[flower1024]

their decision to give fees is reasonable but the fees is too high just for small transaction i sent 0.002 btc from xapo to other address the fee is 0.0014 btc although they give higher fee to the miner than that amount but for me 0.0014 btc is too high so from now i am quit from xapo

As I am a "Dust-bug" this makes Xapo useless for me. Fees are prohibitive. End of Xapo for me.

Just now I checked to send 0.05 BTC they are asking to pay minimum 0.00184391 and for faster transaction fee is 0.00274439. It is almost equal to 4.5USD or 6.5 USD for faster withdrawal fee to send just 115 USD. It has become a worst than sending money through Paypal. Their charges are very high and not giving options to choose lower fee for the people who can wait long to receive funds. Yes, it is no more attractive to use their wallet for a daily transaction, but I'm using their debit card to withdraw only cash.