Do you think low processing fees is more beneficial for merchants? - page 2.

Synchronice

hero member

Activity: 882

Merit: 792

Watch Bitcoin Documentary - https://t.ly/v0Nim

Quote from: coinremitter on April 03, 2023, 03:26:25 AM

There are lots of cryptocurrency payment gateways. Each of them have different processing fees and transaction fees. some of them charge 1% to 5% fees on each transaction. which is a huge amount but merchants have to pay this amount. But there are payment gateways who charge the lowest amount like, one payment gateway only charges 0.23% processing fees on transaction. I find it very attractive because merchants will get more from it and it will be more beneficial for them eventually.

Low merchant fees not only give them availability to get more profit and decrease expenses but it also lets them to run promotions like cashback and make their promotions more attractive while still having less expenses than they would have with payment gateway that charges up to 5%.

But the problem is that low fees alone aren't that beneficial for merchants. Still, a lot of people use coinbase payment gateway because it offers coin to fiat convert option and you don't have to run it on your server, i.e. responsibility is on 3rd party for you.
While 0% is a better choice if one has a high transaction volume, still, there are some benefits that some big merchants prefer, that overcome 1% fee difference.

Russlenat

hero member

Activity: 2716

Merit: 904

Adoption is key, and generally, merchants prefer lower processing fees as this attracts more users, which is good for their business. The low transaction fees would work for the network if it can gain sufficient volume, as these two factors go hand in hand. High volume is necessary to satisfy the crypto project and provide the best service to merchants and buyers alike.

pgbit

sr. member

Activity: 771

Merit: 258

Trident Protocol | Simple «buy-hold-earn» system!

Quote from: coinremitter on April 03, 2023, 03:26:25 AM

There are lots of cryptocurrency payment gateways. Each of them have different processing fees and transaction fees. some of them charge 1% to 5% fees on each transaction. which is a huge amount but merchants have to pay this amount. But there are payment gateways who charge the lowest amount like, one payment gateway only charges 0.23% processing fees on transaction. I find it very attractive because merchants will get more from it and it will be more beneficial for them eventually.

Yes i think that low processing fees are more beneficial for merchants. This is because it reduces the amount of money that the merchants have to pay to be able to accept payments from customers. This could save merchants a significant amount of money in the long run, as the lower transaction fees could add up over time. And also having lower processing fees may also increase the number of customers who are willing to use the merchant’s services, as they may be more likely to trust the merchant if they are offering lower processing fees

naira

hero member

Activity: 1974

Merit: 586

Free Crypto Faucet in Trustdice

Quote from: coinremitter on April 03, 2023, 03:26:25 AM

There are lots of cryptocurrency payment gateways. Each of them have different processing fees and transaction fees. some of them charge 1% to 5% fees on each transaction. which is a huge amount but merchants have to pay this amount. But there are payment gateways who charge the lowest amount like, one payment gateway only charges 0.23% processing fees on transaction. I find it very attractive because merchants will get more from it and it will be more beneficial for them eventually.

For this reason, a trader must be able to choose and sort coins with low transaction fees. Because we need to take as much advantage as possible with certain tricks. Even traders who always do Arbitrage know the benefits of fees. Personally before I make a withdrawal the first thing to do is to check all crypto withdrawal fees and set it as a favorite option.

xSkylarx

hero member

Activity: 2366

Merit: 594

Who on earth likes fees? only those people who implemented it, but for us payers of it, we don't want it, even just a small part of it, because it is a loss to us because that is only a transaction that we need to do but still needed to be paid. If the fees were lower, the merchant would be happy because they now have extra money to add to the capital. It is a huge help, but I hope that not only those merchants, but also us consumers, benefit from it.

DaveF

legendary

Activity: 3500

Merit: 6320

Crypto Swap Exchange

Fees are still only 1 part of it.

I made a post about this a couple of years ago: https://bitcointalksearch.org/topic/helping-businesses-take-crypto-payments-the-good-the-bad-and-the-ugly-5366008

Bad exchange rates can kill low fees.
Lack of customer service and cumbersome integrations will make people not use the service.
If you are converting to fiat and giving it to the merchants how long does it take?

And so on. Just looking at one aspect such as fees is pointless. I can run a service with 0 fees but if my rate is 2% off of what showing at the major exchanges is it really 0 fee?

-Dave

Z-tight

hero member

Activity: 994

Merit: 1089

Quote from: pooya87 on April 03, 2023, 11:55:04 PM

The goal is actually to get to a place where merchants (and others) don't have to use a third party like payment processors to handle their payments. In other words the answer to your question is to not have these third parties in first place to change any fees at all!

You mean a time when every merchant accepts BTC directly to their BTC wallet without using a payment processor to convert to fiat or other cryptocurrencies. I don't know, but a time like that may be when there is mass adoption, but for now i think payment processors are very important, even for BTC, i don't care what the merchant converts the BTC into, as long as i can pay with it, i think that is good. These merchants also have real worries why they can't hold the BTC they receive, especially with volatility, and i get them from a business standpoint, i believe payment processors would be vital both now and in the future.

karmamiu

sr. member

Activity: 588

Merit: 351

Nobody's happy paying fees after fees. Right now, the most attractive platforms for the users are those with low transaction fees. Even if those platforms aren't offering any cash backs or events for their valued customers as long as their fees are low, it is sure that those platforms will always have an existing customer. Personally, I don't really like how our custodial wallets we're programmed here in my country, aside from having us to provide personal information, the fees alone will let you think twice before doing transactions. That is why in most cases I won't send/convert money if it's only a little coz I'll run the risk of paying such ridiculous fees.

arwin100

hero member

Activity: 2632

Merit: 787

Jack of all trades 💯

Quote from: coinremitter on April 03, 2023, 03:26:25 AM

There are lots of cryptocurrency payment gateways. Each of them have different processing fees and transaction fees. some of them charge 1% to 5% fees on each transaction. which is a huge amount but merchants have to pay this amount. But there are payment gateways who charge the lowest amount like, one payment gateway only charges 0.23% processing fees on transaction. I find it very attractive because merchants will get more from it and it will be more beneficial for them eventually.

Yes it is merchant could find it more convenient to them since they can save fees and that would be a good boost to their sales if they find some platform like this will exist. Hopefully there are new players in the market will compete against those giant platforms asking higher fees to there transaction since this can give us huge relief when doing some frequent transaction from multiple people everyday.

passwordnow

hero member

Activity: 3136

Merit: 591

Leading Crypto Sports Betting & Casino Platform

We hate to pay fees and that's like sucking our money easily from these payment processors. There have been merchants that do avoid accepting these services and they avoid getting paid with credit cards, vouchers, and even bank transfers because they've got fees.
While transaction fees now directly with Bitcoin aren't that much, they've got also another option to accept lightning network which is good for small transfers and it's the quickest that they can use. And every merchant should accept directly and that's gonna save them time and from higher fees.

Woodie

hero member

Activity: 1834

Merit: 879

Rollbit.com ⚔️Crypto Futures

Anything that spells out paying extra is never going to look attractive to anybody but if it happens that this mode of payment is the most popular among the merchants customers then the merchant will have no choice but factor this in his pricing of goods and service's as this is a profit making business and not some charity organisation of some sort.

Quote from: Rupok on April 04, 2023, 03:29:39 AM

I think lower processing fees can be more beneficial for merchants.

Do merchants make instant excahanges to stablecoinsor something for them to feel the pinch of processing fees...?

Quote from: Rupok on April 04, 2023, 03:29:39 AM

For example ERC-20 has the most expensive transaction fees on the Ethereum blockchain due to its high price, but the BEP-20 network has the lowest transaction fees on the blockchain.So when we transact from wallet to wallet the fee is very low, but when we transact from wallet to exchanger, the fee is high.

With the new way ethereum is processed thought fees have come to acceptable levels, haven't used eth ever since it got forked thought its cheaper to use now.

Btw isnt it more expensive from exchange to wallet than wallet to exchange because exchanges exploit its customers.

Quote from: Rupok on April 04, 2023, 03:29:39 AM

The disparity in transaction fees can be noticed here.I think it has a lot of implications for merchants. Their operations are essentially managing their payment gateways for merchants.On balance, I think lower processing fees would benefit merchandisers

I guess best way to protect themselves is use blockchains with low transaction fees such as tron, binance, solona etc

Rupok

full member

Activity: 882

Merit: 100

I think lower processing fees can be more beneficial for merchants. For example ERC-20 has the most expensive transaction fees on the Ethereum blockchain due to its high price, but the BEP-20 network has the lowest transaction fees on the blockchain.So when we transact from wallet to wallet the fee is very low, but when we transact from wallet to exchanger, the fee is high.The disparity in transaction fees can be noticed here.I think it has a lot of implications for merchants. Their operations are essentially managing their payment gateways for merchants.On balance, I think lower processing fees would benefit merchandisers

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: kryptqnick on April 03, 2023, 07:21:10 AM

If you mean not using a centralized payment processor but instead having customers send funds directly to a Bitcoin address, then the merchant doesn't pay any fees, which is wonderful for the merchant. However, the fees fall upon customers, and as was mentioned in the thread, it's not in percentage.

The merchant wills still have to pay extra.
He will receive thousands of inputs that he must either consolidate or send to another address to pay its suppliers if he can do that in BTC or to cash out in $ if that's his only option so roughly he will still need to pay almost the same as the client in order to use that money.
It's a small thing everyone forgets but if you're looking at hundreds of small-value transactions he might end up paying more than 1%, way more, on top of what the client pays so it will lose any advantage over other payments. Clearly LN is the answer here not on-chain tx.

Lorence.xD

sr. member

Activity: 1624

Merit: 315

Leading Crypto Sports Betting & Casino Platform

Quote from: pooya87 on April 03, 2023, 11:55:04 PM

The goal is actually to get to a place where merchants (and others) don't have to use a third party like payment processors to handle their payments. In other words the answer to your question is to not have these third parties in first place to change any fees at all!

But this third parties could easily make the transactions smooth and more secured that why most of businesses where it includes money, they will use such apps to make the transactions uncomplicated. Of course they have fees since they couldn't operate without funds, they give services for you to have a convenient payments or any kind of transaction. It wouldn't be hassle for the merchant to have transaction 1 by 1 especially if you have customers that are more than 1000+ a day. Maybe if you have only few people that having kind of transactions everyday then third parties wouldn't be necessary for you to gain more profit with no fees.

BlackBoss_

sr. member

Activity: 602

Merit: 387

Rollbit is for you. Take $RLB token!

Quote from: pooya87 on April 03, 2023, 11:55:04 PM

The goal is actually to get to a place where merchants (and others) don't have to use a third party like payment processors to handle their payments. In other words the answer to your question is to not have these third parties in first place to change any fees at all!

Trust middle man is always bad because two trade partners will both lose if the middle man runs away or the service simply unavailable because of insolvency or bankruptcy.

Trusting middle man payment processors in cryptocurrency like trusting banks will proceed our transfers with our fiat currency deposited in our accounts be safe forever. We can deposit money to our account today, plan for tomorrow trade and tomorrow we wake up with a bankruptcy news.

Bitcoin is designed for peer-to-peer transfers without middle men to hold our coins.

pooya87

legendary

Activity: 3472

Merit: 10611

The goal is actually to get to a place where merchants (and others) don't have to use a third party like payment processors to handle their payments. In other words the answer to your question is to not have these third parties in first place to change any fees at all!

cryptoaddictchie

legendary

Activity: 2268

Merit: 1379

Fully Regulated Crypto Casino

Since you asked that probably you are into brewing your business and trying to get an idea about possible fees. Yes low processing fee could benefited merchants since they after the salea right and having a smaller fees means more customer cause they look into it as well. But this is depend, maybe if you are a start up that needs considerable fee to have some decent earning then good. There are operational cost to look at as well and should be on the list to consider on how you could do a very stable system.

OcTradism

hero member

Activity: 1722

Merit: 801

Quote from: coinremitter on April 03, 2023, 03:26:25 AM

There are lots of cryptocurrency payment gateways. Each of them have different processing fees and transaction fees.

They are operating their payment gateways for business that actually have operational cost so they have to balance that cost with income, to maximize their profit.

Those services can be the same or different at different payment gateways as well as different blockchains. They have to proceed on-chain transactions and each blockchain has different native currency for transaction fee. Ethereum blockchain has most expensive transaction fee because of high demand on that chain, its bad design and high price of Ethereum $ETH.

However it won't stop people using Ethereum ERC-20 chain for transactions. Last but not least, they have options to choose, from blockchains to payment gateways and you are free to make their choices.

kelechi

newbie

Activity: 72

Merit: 0

low fees and fast speed really attracts

Dunamisx

hero member

Activity: 952

Merit: 555

Quote from: coinremitter on April 03, 2023, 03:26:25 AM

There are lots of cryptocurrency payment gateways. Each of them have different processing fees and transaction fees. some of them charge 1% to 5% fees on each transaction. which is a huge amount but merchants have to pay this amount. But there are payment gateways who charge the lowest amount like, one payment gateway only charges 0.23% processing fees on transaction. I find it very attractive because merchants will get more from it and it will be more beneficial for them eventually.

The thing is very simple and logical, if you think you're ok with the ones with lesser fees on transactions then choose them, but on a real sense, we are likely to have it this way that if you weigh and compare the low trans charges gateways from the high ones, literally you will discover that those that have lesser charges tend to have more traffic than the ones with high fees, also it is better to always run a transaction with lower charges but frequent and consistent than running a high charges with no patronage for the service, which means, little profits can accumulate to something big if we choose to consider others than our own interests first.

Topic: Do you think low processing fees is more beneficial for merchants? - page 2. (Read 377 times)