Do you think low processing fees is more beneficial for merchants? - page 3.

Obari

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Quote from: coinremitter on April 03, 2023, 04:26:25 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.

I wouldn't mind if I don't have to pay any fee when making payments and I'm sure no one loves to pay fees.
And I was first talking about the transaction fees associated with sending of Bitcoin (Bitcoin transactions) and the fees has been one of the major reasons I've not been Interested in having to send Bitcoin to someone else and I would rather prefer to withdraw to fiat and then send it to the receiver if it's in my country or I rather send usdt or BUSD with a zero fee.

Since Bitcoin is still very new, it will take much more longer time to get payment gateways with free transactions fees, except government intervenes which I'm sure no one wants that aswell

avikz

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Quote from: coinremitter on April 03, 2023, 04:26:25 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.

Lower processing fees will be always beneficial for the merchants for obvious reasons. Whenever merchants are allowed to keep the maximum amount from a transaction, it's great for them and certainly increases profitability.

In my country, we have fiat payment gateways that allows merchants to receive payments for free. Crypto space is quite new so it's highly unlikely to happen anytime soon. But we need to understand why crypto can't become a preferred choice for payment, it requires both parties to pay a fees to make a transaction happen.

kryptqnick

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If it's a centralized crypto payment solution, they charge their fees in percentage based on the monthly transaction volume (I took a look at Bitpay as an example). I assume traditional solutions charge merchants similarly? 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. So the fee might seem minor for a big purchase but significant for a small purchase. And given that customers aren't used to paying fees when buying things, it can be very off-putting to them and thus not very good for business even if technically beneficial to merchants.

Flexystar

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Quote from: coinremitter on April 03, 2023, 04:26:25 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.

Depends on whether I am getting proper services for the fees I am paying or not. For example, assume X payment provider who is giving you services like a free PoS machine, mobile applications for easy slip generations, a tool to manage billers, and archives of every kind. If this is included then obviously I am ready to pay a decent amount of fees. I will just consider it as a charge for additional services that I am availing of from the payment processing company.

If I am just paying fees and getting nothing in return then I am sorry I would just prefer wallet to wallet transfer. I would literally just ask my client to either scan the QR code of my address or simply paste them through the bin. It's just simple logic.

This is decentralized space, why would I pay someone that much if I am not getting any services in return?

crwth

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Profit from transactions is one of the things that you should consider because if you have a lot of transactions, you will earn more. This is the case if you are the owner of the processor, but if you are the seller, you would want lower because you want more of the percentage of the goods you have sold.

Aside from this, I think it is important to have the instantaneous transaction not just the fees.

noorman0

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@Op, Are you talking about your platform?
The centralized service processing fee always talks about a percentage, it's just a custom fee that dynamically changes from time to time due to competitiveness. For established payment processor apps it may make sense to charge more.

Charles-Tim

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Quote from: coinremitter on April 03, 2023, 04:26:25 AM

some of them charge 1% to 5% fees on each transaction

This is bitcoin and cryptocurrencies, fees are not based on percentage. Like bitcoin, it is based on your transaction input, output, how congested the mempool is and the price of bitcoin.

Quote from: mindrust on April 03, 2023, 04:36:47 AM

When I am withdrawing my coins from an exchange, I always use the crypto with the cheapest withdrawal fee...For these reasons, doge and ltc are my favorites lately.

Withdraw or pay? You withdraw to your wallet. But you pay people, which means not your wallet.

You withdraw because of low fee. Not how you see a coin to be? Or you mean you pay?

Litecoin and doge fees are cheap on Binance and many other exchanges, but they are not the cheapest. Although most coins with cheapest fee like you paid no fee have low or no utility.

Marchants are using or use bitcoin using noncustodial wallet, not to use or using exchanges that charges exorbitantly. Exchanges are charging fee exorbitantly.

mindrust

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Quote from: coinremitter on April 03, 2023, 04:26:25 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.

Of course it is. Nobody likes to pay fees. The smaller the fee is, the better is (unless you are the one that makes a living from earning them fees) When I am withdrawing my coins from an exchange, I always use the crypto with the cheapest withdrawal fee. Binance is making less money but do I give damn? No, because thanks to this decision, I am losing less money. For these reasons, doge and ltc are my favorites lately.

coinremitter

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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.

Topic: Do you think low processing fees is more beneficial for merchants? - page 3. (Read 371 times)