Many merchants are worried about high transaction fees

[coinremitter]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

[Oshosondy]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

It is because you are using an exchange to make transaction. Do not put your money on an exchange or exchanges, they are not your keys. If you want to use bitcoin or crypto, transfer your coins to a noncustodial wallet.

Bitcoin and crypto transactions are very cheap.

[mk4]

The blockchain transaction fees are paid by the payer though, not necessarily the business.

Also — yes, fees can be quite high at times, but this is why smart people are testing out solutions for people to be able to transact in a cheaper manner. (e.g. sidechains, layer-2s, etc)

[Coin_trader]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

The only cryptocurrency that has a high transaction fee are those running on Ethereum blockchain network. Bitcoin and the rest of the cryptocurrency has a low transaction fee which is already equivalent or lower than the bank transfer fee. As businesses owner that accepts crypto as payment, Volatility is the main issue that I’m always encountering especially when I’m liquidating my cryptocurrency profit to fiat for my monthly audit.

Volatility and transaction speed on Bitcoin is what concerns me the most compared to transaction fee which is now below 1$. If you are pertaining to micropayments then you should not use Bitcoin because the transaction fee will surely high base on the ratio to the payment.

[mocacinno]

Even IF the business had to pay the fee (which they don't, as detailed above), you should realize that accepting electronic payments isn't free either... It's actually quite expensive.
I helped set up a couple of webshops which are accepting crypto and payments trough mollie... Mollie is a payment provider that processes electronic payments... I can honestly say they are more expensive than the fee payed by the buyer when using crypto.

Crypto is ideal from the merchant's point of view: no chargebacks, no fees (for the merchant)... Most shops i help set up give a small discount when using crypto, so it evens out the fee that has to be payed by the buyer (no matter how small said fee is)

[Kemarit]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

Yes, in the last couple of days, bitcoin fees has increased, others attributed it to ordinals, I have one transaction, paid 2 sat/VB and it took me 2 days before finally seeing it getting confirmed.

Currently Mempool is  back to normal though (https://mempool.space/), so maybe we will see this occasional mempool clogging, but it's not to be something that to be a big deal with. How about merchants using LN (Lightning Network) though, I think it was designed for merchants or stores who need quick transactions.

[blockman]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

They haven't seen yet the worst with the fees for these payments. These payment solutions are charged high if it's necessary depending on the network fee. If they've got a fixed fee+commission, that would quite be dependable but I don't think it's really expensive at all.
Well, as for the other and typical payment solutions like those from credit card companies, AFAIK, they're charging more than of crypto transactions provided by a third party company.

[Aanuoluwatofunmi]

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

Why should transaction fee be a threat here for making payments when you have the right or ability to influence the charges you will be billed, first check the mempool if it's busy or not before commencing a payment, try use wallet like electrum which provides the function to adjust the transaction fees even when the payment has be made incase of when the mempool is busy, this allows you to increase the charges to quickly get confirmed and you can also use the lowest fee and quickly get confirmed as long as the mempool is not congested as also, you can't compare this bitcoin transaction fee to other cryptocurrencies which has higher amount of charges.

[NeuroticFish]

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?
What’s your take on this situation guys?

As said, it's not normal to ask for higher fees since the buyer sends the funds and pays the network fee. But I can easily guess that some payment processors may try to get some extra money by exploiting the busier-than-usual mempool and the lack of knowledge. I would not be surprised if BitPay does this (again) in order to convince people use the altcoin they're supporting.

I guess that the merchants in question are using the wrong payment processors and have to DYOR and change to different ones.
Or, if there's a bit of technical knowledge, consider installing your own BTCPay server.

[DaveF]

The only way I can see a merchant being worried about high fees is if they are running their own node to take payments and then converting their coins later to cover expenses.

BUT, most of them that I know of fall into 2 categories.

1) Those that don't care since they are using a gateway that does it for them so they get fiat imminently through their processor and fees don't enter the picture
2) Those that do it themselves that will plan a bit to see if they can get a bit more fiat when the price of BTC rises in which case a few sats more for fees is not that big a deal

Unless I am missing something I can't see them caring about fees anyplace.

-Dave

[fadhilz123]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

As long as you know crypto, what transactions have you seen with very high fees? Because in crypto there are many choices of networks for making transactions and usually on the same network it doesn't cost a lot, so this won't be so difficult for business people who accept payments in crypto. Moreover, the small fee is only charged to the sender, not the recipient and I think you need to know more about the transaction network models that exist in the crypto space now.

[hugeblack]

Where did you get this information from? How much is the fee percentage? 1% to 3% is nothing compared to the fluctuation of the price, which may reach more than that daily, and the high price of Bitcoin means that all these fees are long-term gains if the store decides to keep them.
There are also a lot of solutions such as payment by lightning network, where fees can be close to zero.

[m2017]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

It would be good to know where you got the information that the high cost of bitcoin transaction is worrying merchants. Have you done your own research on this?

I was not too lazy and checked the information on the Internet about the cost of bitcoin transactions at the moment:

~ $0.33 average transaction fee per mempool
~ $1.70 average transaction fee in the last block

After all, you could first search for information and only after that put it up for discussion, right?

I don't think that 1-2$ is a significant loss for the business and will not prevent them from making their profit, even taking into account these insignificant expenses.

My attitude towards these commissions is quite normal.

That bitcoin transactions are expensive is mostly a myth.

[Godday]

The blockchain transaction fees are paid by the payer though, not necessarily the business.

Also — yes, fees can be quite high at times, but this is why smart people are testing out solutions for people to be able to transact in a cheaper manner. (e.g. sidechains, layer-2s, etc)

Even so, in a business fees are a problem because it involves profits.  Payers want to get a worth it price and businesses want to make a profitable transaction.  I think the two are interrelated in business.  So far, I also feel that fees in crypto transactions are still relatively high for a transaction with a small value.  At the moment I haven't found a cryptocurrency that offers a small fee.  If anyone knows please let me know 

[mocacinno]

--snip--
I don't think that 1-2$ is a significant loss for the business
--snip--

It's a loss they'll incur with most of their payment options... Not only with bitcoin...
I quickly glanced at what my friend is paying...
IDEAL costs about 30 cents per online transaction
MasterCard en Visa: 25 cents plus ~2-3% of the total value!
Bankcontact is about 40 cents per transaction
KBC, Belfius, ING Pay are about 25 cents + 1% of the transacted value
Paypal takes about 3% of the total value.

And i heared that people with physical point of sale that require those payment machines pay a lot more...

Even if a vendor accepts cash, he'll lose money by driving around to deposit the FIAT and get change.

Plus the loss they'll incure from chargebacks or fake money.

Accepting money is never free, but it's free for the merchant if he doesn't use a payment gateway... In this case, it's the buyer that pays a fee, so i think it's only fair if the vendor gives him a discount since accepting those funds is usually cheaper than accepting fiat (unless you got yourself a subscription with a payment gateway...). Offcourse consolidating crypto and exchanging to FIAT DO come at a price...

[aysg76]

As long as you know crypto, what transactions have you seen with very high fees? Because in crypto there are many choices of networks for making transactions and usually on the same network it doesn't cost a lot, so this won't be so difficult for business people who accept payments in crypto. Moreover, the small fee is only charged to the sender, not the recipient and I think you need to know more about the transaction network models that exist in the crypto space now.

The fees is usually high when there are lot of transactions and congestion in memepool so the one with high fees have more chances of getting confirmed fast and you must mark your transactions as RBF and this is in case of bitcoin and generally it's not too much but if we say about coins like ETH then you can't imagine what the gas is when make people make transactions and it can't be affordable while making payments to merchants.You have to make transactions on the same chain and if you want to send other coins you have to exchange like you can't directly send ETH to bitcoin address so make sure about these things and fees will be dependent on the network congestion at the time which always vary we can't say it will cost less.

[Flexystar]

I dont know when is the situation to find such high transaction fees? I keep seeing these posts all the time regarding very high fees. Well, if you think you are having higher fees then check your wallet settings which might be set to "priority" transaction. That will always eat up lot of fees per byte as compared to the Normal fees or even Low fees option.

I am not sure which wallet you are using but for me electrum and Mycelium has been lord blessings! Specifically Mycelium is good with easy to use UI and fee setter. Most of the times I am sending transactions which are above 20-50 bucks and setting my transaction speed to "Economy", This gives me fee of around 10-50 cents. I think it's really cheap considering you are sending it with various benefits (anonymous, no paper work, decentralized).

The blockchain transaction fees are paid by the payer though, not necessarily the business.

Also — yes, fees can be quite high at times, but this is why smart people are testing out solutions for people to be able to transact in a cheaper manner. (e.g. sidechains, layer-2s, etc)

...and obviously this is true as well because in my experience its me who always pay the fees and there is no such option to set the fees on the account of receiver. Definitely you need to either change your wallet and obviously stop using exchangers directly. They will eat up more than 0.25% in fees both maker and taker. If you are transacting out of the exchanger then consider it another charge.

[Yatsan]

Might be centralized exchange which generates high transaction fees simply because of taxation ofcourse. There are trusted decentralized exchanges wherein an investor or individual may use to lessen the fees with withdrawal. Also, in some countries like mine, huge charges occur on the convertion from cryptocurrency to fiat and the other way around. If you are that dedicated for this industry, make use or simply use crypto to crypto transaction. Problem only is making use of their payments to sustain the business or what you are trying to merchant. Selling during market downfall is a bad idea. But during high times, selling might yield to regrets because of the tendency of bigger profit by waiting.

[Yogee]

I'm surprised this old argument is still spread until today despite transaction fees now are significantly lower.

I pay my bills in fiat using online payment gateways and their service fee is higher than sending bitcoin on a normal day. I prefer to pay in btc or other crypto if merchants would accept such payment method.

[jrrsparkles]

Many businesses are accepting payments in crypto, apart from other issues the main pain point that hurts them the most is Transaction fees.

Many crypto payments are charging higher transaction fees and what has left in the hand of merchants?

What’s your take on this situation guys?

Did you just woke up right from 2017/18? Because to my knowledge that was the last time that fees of bitcoin transactions were insanely high and for the last couple of years it stays just 1 sat/byte for most of the time.

For your information merchants are paying higher fees when it comes to digital payments like cards cause every payment processor like visa/master card charges 1 to3% for every transactions.