Bitcoin high transaction fees is a disadvantage to small business owners

[Unbunplease]

Bitcoin transaction fees, of course, are a demotivating factor. If you need to send $10 and you have to pay $20 per transaction, you will naturally use something other than bitcoin. I ran into this problem myself recently - and I had to wait for transaction fees to come down.

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[xSkylarx]

Bitcoin transaction fees, of course, are a demotivating factor. If you need to send $10 and you have to pay $20 per transaction, you will naturally use something other than bitcoin. I ran into this problem myself recently - and I had to wait for transaction fees to come down.

That is why the business owners that accept it have a really hard time receiving payments as well as sending them unless they just accumulate them over time, but still, there are businesses that accept it just for the awareness and curiosity of the people, and it is indeed successful for some businesses, but those are the businesses that are selling items that are expensive like watches, jewelry, and cars.

[SyndicateLabs]

You may be on the right track to a problem with no specific solution, the high transaction fees of using bitcoin can be a disadvantage for small business owners. Some customers may be willing to pay a small fee to use bitcoin because of its convenience and security in transactions. It's important to find ways to minimize your transaction costs, perhaps by switching to lower-fee bitcoin exchanges or using multi-signature wallets like those for segwit or lightning, which helps reduce transaction costs and increase processing speed.
It may take some effort to research and develop these solutions, but for small businesses it can save thousands of dollars each year. And moreover a crypto participant promoting bitcoin does not mean using them often, many solutions come from altcoins that can make you more stable and they are completely part of the market and have a correlation. relations with BTC.

[vv181]

~

Using  Binance, has also been suggested to me, that it is a better option to escape bitcoin high transaction fees. I would love to make the efforts to introduce my customers to the use of Binance, as an exchange in our transactions, but Binance is presently having an issue with SEC in my country. Nevertheless, I'll still keep the option in mind, pending when they resolve their matter.

Also, lightening networks is another option to manoeuvre this high fees, but frankly I don't understand how it works yet. I'll go through and diligently study the links that have been shared on this topic.

Speaking about Binance Pay, it might be a handy option to accept cryptocurrency. With a caveat you know it is inherently and technically not transacting cryptocurrency. In other words, Binance is the middleman and the controller.

I'm aware some of the merchants do use Binance Pay to get ridden the fee burden, especially if Binance adoption or usage is popular within some countries. What I'm suggesting for your case, is since you are mainly here to utilize the advantages and gain, and you tried to apply it to your business, you should consider the payment option preference for your user/customer.

Lightning network lack of adoption. Binance has scrutiny in your country. So I think one option is to simply accept Bitcoin as it is, or depending on customer awareness of LN, you can also implement it. After all, if you are here for the gains, implementing third-party processors like Binance Pay may be the cheapest solution, but you and the customer don't have any advantages of bitcoin.

[Mahanton]

Bitcoin transaction fees, of course, are a demotivating factor. If you need to send $10 and you have to pay $20 per transaction, you will naturally use something other than bitcoin. I ran into this problem myself recently - and I had to wait for transaction fees to come down.

That is why the business owners that accept it have a really hard time receiving payments as well as sending them unless they just accumulate them over time, but still, there are businesses that accept it just for the awareness and curiosity of the people, and it is indeed successful for some businesses, but those are the businesses that are selling items that are expensive like watches, jewelry, and cars.

They could still make use of those common payment processors if they do really wanted on accepting crypto into their business but if they do really like on getting those coins into their own personal wallets then it
wont really be that bad but its true that when it comes to fees then this is where hindrance and hesitation would happen because people cant just afford on paying up that big on something cheap that they do bought.
Dont know if Lightning Network is already available now or had been implied to be safely be used when it comes to payments with Bitcoin because this is the only way i could see on which Bitcoin
could be used specially into these kind of transactions in between merchants and consumers.

[Dr.Bitcoin_Strange]

also to be cautious of bitcoin high transaction fees. I did a little research on it and found out the inevitability of the high fees.  

My problem with these high transaction fees,

And who mentioned to you that the Bitcoin fee is currently high compared to what some Bitcoiners spent about a month ago when the transaction fee really skyrocketed?


First, I would say that it's not a forceful thing for customers to pay you in Bitcoin; anyone who wants to pay with Bitcoin would definitely and will do so without minding whatever fee it costs. The reason is that some people are still happy to spend their Bitcoin to purchase a thing, but with the current transaction fee, it's not really too much that customers can't afford if they really want to purchase some stuff and pay with Bitcoin ($1 or $0.5). In my shop, I already have some customers wanting to pay with Bitcoin. So, I would just encourage you to accept Bitcoin payments if you want, and some Bitcoiners would still pay and cover the T-fee.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺

[TimeTeller]

also to be cautious of bitcoin high transaction fees. I did a little research on it and found out the inevitability of the high fees.  

My problem with these high transaction fees,

And who mentioned to you that the Bitcoin fee is currently high compared to what some Bitcoiners spent about a month ago when the transaction fee really skyrocketed?

First, I would say that it's not a forceful thing for customers to pay you in Bitcoin; anyone who wants to pay with Bitcoin would definitely and will do so without minding whatever fee it costs. The reason is that some people are still happy to spend their Bitcoin to purchase a thing, but with the current transaction fee, it's not really too much that customers can't afford if they really want to purchase some stuff and pay with Bitcoin ($1 or $0.5). In my shop, I already have some customers wanting to pay with Bitcoin. So, I would just encourage you to accept Bitcoin payments if you want, and some Bitcoiners would still pay and cover the T-fee.

Cheers 🥂, Dr.Bitcoin_Strange 👺👺

Indeed! There are some customers who are just happy to pay using their bitcoin.
Also, there are instances that fees are low depending on the network activity.
So just let your customers pay if they want to, anyway, it is not compulsory to pay via btc.
And it is up to you when will you cash out your collection. People will pay if such payment method is available.
No harm done if you will just post it on your shop about bitcoin's acceptance.

[goaldigger]

Bitcoin transaction fees, of course, are a demotivating factor. If you need to send $10 and you have to pay $20 per transaction, you will naturally use something other than bitcoin. I ran into this problem myself recently - and I had to wait for transaction fees to come down.

The feed and its volatility are still a problem, this is why many are still not accepting crypto as mode of payment as they don’t want to lose their profit by just accepting crypto as a payment. Though some merchant can afford to have this one, but its not for everyone yet hopefully soon we can have a better solution to handle this one.

[BenCodie]

The solution for repeat customers is to use the lightning network. Yours fees will significantly reduce on average (as reach transaction has no fee until the channel is closed).

Using standard/layer 1 bitcoin transactions for every transaction is probably not going to be viable for quite some time, if ever. If every business, or even 1/100th accepted bitcoin, the mempool would exponentially grow and I can't see how that would work in viably in terms of layer 1 fees.

[Husires]

Using  Binance, has also been suggested to me, that it is a better option to escape bitcoin high transaction fees. I would love to make the efforts to introduce my customers to the use of Binance, as an exchange in our transactions, but Binance is presently having an issue with SEC in my country. Nevertheless, I'll still keep the option in mind, pending when they resolve their matter.

Accepting Bitcoin via Binance does not mean that you offer your customers the experience of using cryptocurrencies, but you risk the possibility of losing your money, as Binance is a centralized entity, and if it is hacked, your money has disappeared and no one will guarantee it to you.

Why not give the user several options such as paying by coingate and BTCPAYSERVER with the possibility of adding a lightning network, all of which will reduce your exposure to fees and consider that the money that goes directly to your wallet is similar to DCA.

Also, lightening networks is another option to manoeuvre this high fees, but frankly I don't understand how it works yet. I'll go through and diligently study the links that have been shared on this topic.

This is very easy with BTCPAYSERVER you need a little bit of technical knowledge which can be gained from YouTube videos, hiring a developer or using third party applications.

[adzino]

It's not high at all right now. Like just few cents and even less if you can wait for a while for the network confirmations. Yeah, I won't deny that the fees are high when the network is congested and it is something that we have to deal with, but I am sure, in the future, we will come up with some solution to these issues without compromising decentralization or security of the network. Also, you can use altcoins that have very low fees and very fast network confirmation. There are some good altcoins out there which might be helpful for "small business owners".

[Oasisman]

It's not high at all right now. Like just few cents and even less if you can wait for a while for the network confirmations. Yeah, I won't deny that the fees are high when the network is congested and it is something that we have to deal with, but I am sure, in the future, we will come up with some solution to these issues without compromising decentralization or security of the network. Also, you can use altcoins that have very low fees and very fast network confirmation. There are some good altcoins out there which might be helpful for "small business owners".

Even with the transaction fee today, it is still considered high for the small businesses. Imagine paying $0.55 transaction fee for a $10 purchase, that's every purchase. If you want to maximize the use of your transaction fee, you need to buy everything you need in 1 transaction, otherwise you'll another fee for another transaction. There's a much cheaper fee but it'll really takes time before your bitcoin will come through.
Lightning network will be the beginning of the solution about high transaction fees and slow transaction. It's will just be a matter of time and we'll get to see this happen in the near future.

[justdimin]

Even with SMES that selling low value item usually not advisable to use Bitcoin as mode of payment because of fee and the transaction speed. Lightning network is the solution but it’s not popular to many people which means only few accept this even on exchange.

I think the only time it’s good to accept Bitcoin as small business owner is if you will consider this Bitcoin payment as your long term investment and use your pocket money instead to replenish your business balance that goes to Bitcoin.

The good thing about crypto is that you do not have to use bitcoin all the time, you can use other coins which means that it would be cheap. Like lets say I will send you 5 dollars for a cup of coffee, I can do that with USDT which is stable so you do not lose any money, and do that with TRC20 so it won't cost a lot neither. That's the way to approach things and I am going to be able to pay you without much transaction cost.

It's not an easy task to get everyone to accept that, but if shop owners are worried about it, that's a good way and quick way too. You get the money right away, and nobody spends much money on it, and nobody loses or takes any risks. Even market movements doesn't matter in that case because you got a stablecoin.

[coupable]

This is a great initiative and I personally would love for people to use Bitcoin for their daily small businesses. This will be the biggest incentive for the rest to dare to use Bitcoin.
It is good that you have thought about this point before you start accepting bitcoin payments. Indeed, it is a big problem for small businesses to accept payments in small amounts for everyday products. But there really is a solution to that that you may not have come across.
The solution is to use the Lightning Network, which enables you to make transfers in small amounts on channels parallel to the Bitcoin network, and then send all the amounts in one transfer on the main network. Here are some useful links:
How to use the Lightning network?
Lightning Network questions

i think not many people are using lightning network and both of them must be the same network.
base on this
lightningnetworkstore there are 682 stores that use lightning network.
but it's slow adoption

Don't you think that 682 is a good number for the number of stores that use the Lightning Network, which proves that its use is fairly widespread? We may not be able to know the extent of the demand for using this service in those stores, but I am sure that it is almost the only solution for conducting transactions in small amounts on the Bitcoin Blockchain network. Today, there are many trading platforms that support the Lightning Network, which helped encourage more people to use it.
Of course, there are other methods that can be adopted, such as using alternative currencies with lower conversion fees, or using the internal conversion feature on Binance or other platforms. I just tried to accurately answer the OP's question about how to make payments using bitcoin in particular.

[bussybuddy]

What is the real solution to the OP's problem? What I see here are the payments of dissatisfaction between the parties, but are there more specific numbers, I mean what range is your business's payment at 1btc, or 100btc, or simply is a few tens of dollars in btc, really knowing btc and the crypto market without looking at solutions to altcoins is a waste. Are you willing to accept XRP, LTC,... payments for your business, the fees are significantly settled, and they still don't lose value encouraging more people to use crypto as well as btc.

[Renampun]

Bitcoin fees are cheap if the transactions you make are large and international. if transactions are made in small amounts, such as payments at cafes, etc., it seems ineffective to use bitcoin as payment.

but if you don't mind fees and want to use your bitcoins directly where they support it, it seems that using bitcoins is a good option. especially when paying using bitcoin, senders don't need to worry about their identity and transaction security will be more guaranteed. so the choice is yours whether you want to pay with bitcoin or not.

[Davian144]

What is the real solution to the OP's problem? What I see here are the payments of dissatisfaction between the parties, but are there more specific numbers, I mean what range is your business's payment at 1btc, or 100btc, or simply is a few tens of dollars in btc, really knowing btc and the crypto market without looking at solutions to altcoins is a waste. Are you willing to accept XRP, LTC,... payments for your business, the fees are significantly settled, and they still don't lose value encouraging more people to use crypto as well as btc.

If there is still a solution, this kind of thing shouldn't be a problem because small entrepreneurs can still use other alternatives for this kind of thing and some of the alternatives that you suggest are also not bad to use if both parties agree to complete the transaction. But lately I think the transaction fees on Bitcoin are not that big either and are still in the very reasonable category, because the sender can still reduce the fees as he wants even though the transaction takes a little longer to be successful.

[hugeblack]

I don't know who told you that bitcoin transaction fees are high, but it's best to avoid relying on sources like makeuseof.
I've never run a store before, but I've bought several digital products for an average of $30 to $600 and it's cost me less than a dollar on average for most transactions. Currency volatility may be a more convincing reason, although you must understand the risks associated with this industry, which must be thought of as part of the future development of these currencies. Imagine as if you bought Apple shares in the early 2000s.

[irhact]

I feel that this is a big edge that fiat currencies have over bitcoin, because you don't have to pay extra to buy goods or services, even when you make fiat payments through banks, they only charge a token as transfer fees. So this high fees is a disadvantage to small business owners like me who has the intention of receiving payments in bitcoin.

Bitcoin network fees aren't always high, it only becomes high during a specific amount of time when Bitcoin network gets congested but that doesn't always happen and if such situations were to repeat itself, you can make use of lightening network to avoid your customers paying high fee for faster confirmation. Lightning network has been in use for some years now and businesses using it doesn't have any challenge.

Don't worry you're not using an altcoins that the value might drop or you have to convert it to Bitcoin. Lightening network still makes use of Bitcoin not altcoins for its transaction and you'll receive the transaction instantly. But this isn't a problem because majority of the time Bitcoin fee is low.

[19Nov16]

The thing that makes it difficult for us to use Bitcoin for direct transactions is a very expensive transaction fee, to send bitcoin with trust wallet it takes around $ 0.6 to $ 2 depending on the network's busy schedule, and when the price of bitcoin is more than $ 60k, I once sent $ 140 at a cost of $ 8.