Bitcoin high transaction fees is a disadvantage to small business owners

[BD Crypto]

No wonder, the transaction fee is so much for small business, but if you trust your customer so much, you should ask them to pay at the end of month, this the amount will be huge and your customer has to pay few dollars only. But it has its own limitation like customer could scam you.

This Idea will make his Business more troublesome and this is not a good idea to grow his business at all. It can affect his business with bad impact. Because people aren't much responsible to pay due payments after buying anything.

There can be a solution to use Bitcoin Lightening Network. It's also a good idea if he use Binance Pay ID. I am not sure if it will be a good idea but he can use other blockchain for Bitcoin to receive payments as sender will have to pay a very lower fees.

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[Sayeds56]

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.

I appreciate your recognition to utilize Bitcoin for small business transactions, which reflects how deep Bitcoin is integrating in activities of our everyday life. As many  members have already recommended to use Binance account for making payments, but it will necessarily require all your customers and suppliers to maintain their accounts with Binance exchange which seems quite difficult task. An alternative option worth considering,  is to explore possibility of using Lightning network of Bitcoin which is relatively low cost solution.

[BitcoinTurk]

To talk about the last few months we can see that there has been a serious increase in miner commissions due to the serious popularity of Bitcoin NFT's. Although this does not indicate a permanent rise on miner fees, we usually see increase abnormally when there is high hyped NFT mints. This has a very serious negative impact especially for receiving or sending small amount of payments. Considering such situations it would be better to prefer blockchains such as Solana, which have low transaction commissions in addition to the option to receive payments with Bitcoin. Of course, choosing a different cryptocurrency may not be very positive for users who will pay but it will be a good remedy to avoid high miner commissions.

[Cookdata]

My problem with these high transaction fees, is that customers naturally wants to minimize expenses, so if they choose to make payments with bitcoin, then they will want to exchange it at the exact rate of USD. So the seller bears the cost of the high fees alone, which may lead to selling at a loss. Although I'm guessing that the high fees might not affect big business owners, who receive payments in bitcoin, because they sell with higher profits, and when they minus the cost of the high transaction fees, it still won't affect their overall profits.

What is there in transaction fee, the question you should have asked yourself is will you be worried is will you complain if you are sending bitcoin to an exchange, you will surely pay the transaction fee to the miner before it gets to anyone, instead of converting on exchange and trade or swap to get other currencies, I would bear the cost of transaction since I'm the one buying. However, considering how high the naira to the dollar is in Nigeria, I will settle for Bitcoin through lightening Network.

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.

I understand your frustration when you convert $$ to naira, they look big but when you look at the other countries that make payments through dollars, you will choose to make payments through Bitcoin as you will not be paying just the fees when you used card or fiat, the associated task will discourage you.

[Litzki1990]

A big problem for small traders is Bitcoin's high transaction fees. Because most of the money that small traders invest in Bitcoin is spent on fees. As a result, many small traders have withdrawn from this type of business. When Bitcoin transaction fees were normal, it was very easy to make Bitcoin transactions with very small fees, but recently, due to the increase in transaction fees, this is no longer possible. It is not only a problem for small traders but it is a big problem for all types of traders. Big traders often need to do small transactions at that time but they cannot do small transactions due to extra transaction fees.

[Flexystar]

A big problem for small traders is Bitcoin's high transaction fees. Because most of the money that small traders invest in Bitcoin is spent on fees. As a result, many small traders have withdrawn from this type of business. When Bitcoin transaction fees were normal, it was very easy to make Bitcoin transactions with very small fees, but recently, due to the increase in transaction fees, this is no longer possible. It is not only a problem for small traders but it is a big problem for all types of traders. Big traders often need to do small transactions at that time but they cannot do small transactions due to extra transaction fees.

I am pretty sure fees are not that high. Obviously if you gonna go to the shop and buy dollar worth stuff then that's different story. Yet you can set the fees and priorities the transaction speeds for bigger ones.

As discussed by various fellow member LN is something that we should start learning and adopting all the way through crypto space.

There are ways to overcome this, and that is through the lightening network. Though I am just learning about this just now and willing to be a peer for the network it seems perfect solution for the same. May be just the right one and they can get instantaneous transaction with this so no long waits in the que neither waiting of the confirmation or vice versa. I am not sure how this strategy or network can be implemented on the shop keepers desk but for sure it will take lot of infrastructure and support from various organizations that can reach out to that level.

[usekevin]

The bitcoin transaction fee was high for longer and it’s like 10 dollar transaction fee for the 20 dollar transaction.So many people had suffered a lot at the time of this transaction fee increase.In such conditions,the experienced people should use of holding their coins during that situation.Some uses the holding altcoin to compensate during such situations.NFT also increased the use of crypto currency and increased the transaction fee too.

[Faisal2202]

There can be a solution to use Bitcoin Lightening Network. It's also a good idea if he use Binance Pay ID. I am not sure if it will be a good idea but he can use other blockchain for Bitcoin to receive payments as sender will have to pay a very lower fees.

Well, that's also an good idea of using bitcoin lighting network but the transaction fee difference is not that much. So, it will still cost them. And i think the Pay ID method is better as it provide free transaction fee.

But still, as i mentioned,op has to provide different ways to customers for there easiness to pay in BTC. And i found many other alternatives of lighting network technology but i prefer this one. Now it all depends on the customer, as not every customer is using lighting network for transaction.

[Gyfts]

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.

Using 3rd party payment processors ruins the point of taking crypto in the first place IMO. Having to deal with a 3rd party holding your funds is too risky. I suppose if it meets the needs of your customers and there isn't any other way of accepting crypto currency then it might serve a utility. Reality are that the fees are going to be significant and you'll need to factor them into operating costs. The suggestions in this thread might mitigate fees to some degree but they're unavoidable.

[Bushdark]

Now that the network fee is down, I hope many of those small business will keep running transactions because everyone now can afford the fee which is very normal now. Bitcoin is the only coin that many investors have a concrete trust on and then that the fee was high, many investors decided to go for other coins for transactions to reduce expenses. Bitcoin adoption was halted when the network fee increases making some newbies to quickly switch to other coins mostly stable coins and run there trdaes.

[serjent05]

I run a small business and I receive payments for my goods in fiat currency. So joining this bitcointalk forum has really enlightened me about the advantages and gains of trading and investing with bitcoin. So going a step further, I decided that I want to place adverts that customers can have the option of making payments when they buy goods in my shop with bitcoin. But I decided to first seek the opinions of experienced people who are into bitcoin, they encouraged me to go ahead, 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. https://www.makeuseof.com/what-are-bitcoin-transaction-fees/ 

My problem with these high transaction fees, is that customers naturally wants to minimize expenses, so if they choose to make payments with bitcoin, then they will want to exchange it at the exact rate of USD. So the seller bears the cost of the high fees alone, which may lead to selling at a loss. Although I'm guessing that the high fees might not affect big business owners, who receive payments in bitcoin, because they sell with higher profits, and when they minus the cost of the high transaction fees, it still won't affect their overall profits.

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.

People buy BTC from the exchange or an app.  So basically if they are using the same exchange as you or apps, internal transfers are free.  So the issue of high transactions is solved by simply using the same application or exchange and just doing internal transfers.  You can still use Binance (even though SEC sue it) or other exchanges that enable internal transfers.  In times like this small business owners need to be creative in adapting into the situation.

[wtsimis]

My problem with these high transaction fees, is that customers naturally wants to minimize expenses, so if they choose to make payments with bitcoin, then they will want to exchange it at the exact rate of USD. So the seller bears the cost of the high fees alone, which may lead to selling at a loss. Although I'm guessing that the high fees might not affect big business owners, who receive payments in bitcoin, because they sell with higher profits, and when they minus the cost of the high transaction fees, it still won't affect their overall profits.

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.

Although Bitcoin offers extremely fast and unlimited transaction possibilities, Bitcoin's high transaction fees cause significant inconvenience to small business owners. And for small business, frequent small transactions are often burdened by high fees that make it financially impossible to accept Bitcoin as a payment option. Since we first use an exchange site or wallet to get bitcoins, I think we should use any exchange or wallet that has free internal transaction fees.

[Kelward]

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.

Being quite new in bitcoin, I normally seek for opinions from more knowledgeable people in cryptocurrency matters, so I don't make avoidable mistakes. I however agree that one should not totally rely on opinions and information  given, but can receive them as a guide, in making informed decisions.

 The exchange rate of my country's fiat currency is approximately 650 naira to 1 USD, so if a seller adds one dollar equivalent to the market price, the buyer will most likely walk away, because due to the harsh economy, nobody is ready to add a cent more for payments So the most viable option for me now is to explore the lightening networks, hopefully if my small business can bear the very low transaction fees, then I'm on my way to advertising the option of making payments with bitcoin, in my business.

[bayu7adi]

The current Bitcoin fees may not be friendly for small-value transactions when compared to fiat currencies, as fiat transactions generally have lower fees.

However, from another perspective, the way banks create money can be seen as unfair and should be taken into account.

In my opinion, true fairness lies in Bitcoin. I am still eagerly awaiting the introduction of Central Bank Digital Currencies (CBDCs) in the global economic market. What the government offers through its CBDCs will greatly impact Bitcoin's position in the eyes of the public.

[nesty]

Yes, the high transaction fees associated with Bitcoin can be a disadvantage for small business owners. Bitcoin transaction fees are determined by the network's supply and demand and they can fluctuate greatly over time. In times of high demand, fees can be quite high which can make it difficult for small businesses to justify using Bitcoin as a payment method. Small businesses may not have the resources to absorb the cost of high transactions fees, which could eat into their profit margins. This is especially true for businesses that operate on tight margins, such as those in the retail or food service industries. That being said, there are ways for small businesses to mitigate the impact of high Bitcoin transaction fees. For example, they could consider using a payment processor that offers lower fees or using a different cryptocurrency with lower transaction fees. Some businesses may choose to pass the cost of transaction fees onto their customers by adding a surcharge of bitcoin payments. While high transaction fees associated with Bitcoin can be a disadvantage for small business owners, there are ways to work around this issue and still benefit from using cryptocurrency as a payment method.

[DrBeer]

Yes, Bitcoin has "inherent" problems - low speed, high commission, "primitive" functionality.
That is why it seems to me that Bitcoin's position is not a day-to-day bargaining chip for buying everyday goods, but an investment tool. Real "digital gold in bullion" - not convenient, cumbersome, but - it counts and evaluates all other cryptocurrencies.
I.e. its main audience is "cryptobanks", medium and large investors, etc. audience, but not the average person who went to buy a pack of ice cream

[Fuso.hp]

If Bitcoin transaction fees were deducted based on the transaction, then maybe no one would bother to trade Bitcoin. The fee for transferring $50 is the same as for transferring $1,000, which has become a major barrier for small traders in Bitcoin transactions. When Bitcoin transaction fees were normal, no one complained about these transaction fees, but suddenly, when the transaction fees increased abnormally, it became very difficult for small traders. Small traders will find more incentive to invest in Bitcoin if transaction fees return to normal.

[Smack That Ace]

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.

Being quite new in bitcoin, I normally seek for opinions from more knowledgeable people in cryptocurrency matters, so I don't make avoidable mistakes. I however agree that one should not totally rely on opinions and information  given, but can receive them as a guide, in making informed decisions.

 The exchange rate of my country's fiat currency is approximately 650 naira to 1 USD, so if a seller adds one dollar equivalent to the market price, the buyer will most likely walk away, because due to the harsh economy, nobody is ready to add a cent more for payments So the most viable option for me now is to explore the lightening networks, hopefully if my small business can bear the very low transaction fees, then I'm on my way to advertising the option of making payments with bitcoin, in my business.

In my country, if you use cash or a bank, even a $300 or $500 transaction won't be charged extra. Of course, 1 dollar is nothing compared to 500 dollars, but 1 dollar will also buy a meal, so there is no reason to waste it.

I agree with OP, transaction fees are an issue for bitcoin when using it as a payment method. Not to mention daily necessities, I wouldn't waste my money unreasonably when buying 1 cup of coffee worth $0.50 but paying an extra $1 in transaction fees if using bitcoin. Fiat prevails over bitcoin in this respect, and we shouldn't deny that.

[Uruhara]

I can't deny what the OP wrote about. Because for small businesses that accept payments, of course, in small amounts. then of course transaction costs will be an issue that needs to be considered enough. So what I can suggest is that your business should set a minimum amount that you can accept in bitcoin payments. This minimum amount must be what allows you to cover transaction costs and still benefit from your business.

So set a minimum transaction in your business for the bitcoin payment option. if it's too small an amount that can lose profits due to transaction costs then avoid it. and set a higher minimum amount that can still cover the transaction costs of the profits you get.

[Wend]

Even bitcoin's low transaction fees are not a better solution for small businesses or consumers. I don't know about other countries, but in my country, when using cash or e-wallet services are almost free, everything is completely free and very fast. So using bitcoin for payment is also not a better option. But for international payments, bitcoin will outperform fiat.
To be honest, I still think bitcoin would be more suitable as an investment than a payment method, as we will still be converting bitcoins before and after the payment into fiat.