Localbitcoins looting the money | Bitcointalksearch.org

btcdevil

legendary

Activity: 1302

Merit: 1027

Quote from: kangasbros on July 24, 2017, 12:53:42 AM

Hi, we made the fee model change some time ago. The reason for the fee model change is that small deposits cost a lot for all of our users, because spending an output is more costly. People were sending small deposits to our wallet (dust), and causing the fees for everyone to increase. Note that the sending fees went much lower now after this change.

We try to make our fees go lower, but it will take some time and work.

We published this blog post when the fee model changed: https://localbitcoins.com/blog/new-bitcoin-network-fee-model/

Additionally there is information about the fees on the fees page: https://localbitcoins.com/fees

And also on the wallet page the fees are mentioned. The fee varies on depending on the bitcoin network situation. For example at this moment the bitcoin network deposit fee is 0.00036793 BTC - it has went lower recently.

But why are you charging the deposit fee when it is no related to you, it is upto the sender to pay the proper deposit and get their transaction confirmed but even when they have payed proper transaction fees you are charging them also the deposit fee, it is like one type of profit for you as you are not paying fees for our deposit then why to charge deposit fees.

This openly states that localbitcoins is looting the users who are depositing the bitcoins to sell, so you are getting profit from depositor and when they sell their also you are taking transaction charges. This is very bad status to your site.

kangasbros

hero member

Activity: 812

Merit: 1006

Hi, we made the fee model change some time ago. The reason for the fee model change is that small deposits cost a lot for all of our users, because spending an output is more costly. People were sending small deposits to our wallet (dust), and causing the fees for everyone to increase. Note that the sending fees went much lower now after this change.

We try to make our fees go lower, but it will take some time and work.

We published this blog post when the fee model changed: https://localbitcoins.com/blog/new-bitcoin-network-fee-model/

Additionally there is information about the fees on the fees page: https://localbitcoins.com/fees

And also on the wallet page the fees are mentioned. The fee varies on depending on the bitcoin network situation. For example at this moment the bitcoin network deposit fee is 0.00036793 BTC - it has went lower recently.

flippener

full member

Activity: 322

Merit: 101

I used LocalBitCoins when I started but I've moved on (coinbase, Poloniex, Electrum, etc.). I wouldn't go back to LBC again.

JimmieA

sr. member

Activity: 396

Merit: 250

the additional fee really too great and maybe you will pay more like that.I think you should only make the necessary transactions. At present, the fee we pay is too large. That made me feel unhappy and sure it would limit the number of transactions. More seriously, it will make beginners to abandon

bajing

legendary

Activity: 1176

Merit: 1001

The most Professional Cryptocurrency Casino

Quote from: ladydark on July 09, 2017, 07:21:57 AM

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

I've use localbitcoins before for sell bitcoin to neteller/skrill/paypal but never know there is any incoming fee maybe it's a transaction fee. I do not know if they has made a new rule but honestly i've a little hesitant about it because usually the exchanger taking a fee from withdraw.

siti25

hero member

Activity: 574

Merit: 503

Quote from: ladydark on July 09, 2017, 07:21:57 AM

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

Actually this has been discussed since a long time, transaction costs are taken by local bitcoin is too big, and in fact this is very unusual, but it may have been their policy, and also unable to do anything

freedomno1

legendary

Activity: 1834

Merit: 1094

Learning the troll avoidance button :)

An incoming transaction fee, they absorb no cost on that side so they hid it as a usage cost.
Seems pretty much like a front and back end segregated fund trick you pay on both the receive and send in this case instead of one or the other (lol mutual funds are in my head)

Hui8

sr. member

Activity: 602

Merit: 259

Quote from: malikusama on July 09, 2017, 08:55:45 AM

This is too much, the increasing transaction fee is causing a negative impact on the bitcoin users which may lead to the decrease in the number of users in the near future if this continues.

It's not like that people are getting impacted in negative way, it's the frustration about the fees that are killing small transaction now a days. The OP wanted to say he was willing to send very less amount through the transaction but the fees are being incurred from both sides which is not worth paying because whatever he is left with after deduction is big time loss. Hope that we will get some recovery options soon.

zeze18

sr. member

Activity: 938

Merit: 256

I agree with you, though currently bitcoin is growing very rapidly, but to me still leaves a question mark whether the future of bitcoin will be very bright or vice versa, but surely all hope bitcoin progress will continue to increase until it reaches its peak and can become official payment instrument.

The_Dark_Knight

hero member

Activity: 840

Merit: 502

Quote from: orarider on July 09, 2017, 07:24:21 AM

Quote from: ladydark on July 09, 2017, 07:21:57 AM

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

Unbelievable, it's really too big. I never heard about incoming fee. It sounds silly, the recipient does not take any fees, that is the rule for performing bitcoin transactions. Clearly they are scams.

This is surprising I did not knew about this, stop using those centralized services they are becoming just like banks, the fact they are charging you for something that is free is outrageous, ditch them and never use their services ever again since this is completely ridiculous.

FasTroy

sr. member

Activity: 434

Merit: 250

Quote from: cjmoles on July 22, 2017, 06:43:18 PM

Quote from: Yakamoto on July 09, 2017, 11:48:17 AM

Quote from: ladydark on July 09, 2017, 07:21:57 AM

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

That's surprising, if they do have an incoming fee then it should be a lot lower than something like that, that's just too much. Maybe 0.0001 BTC (since they have to maintain their website somehow) but if they're taking that much (about $2 USD) for each incoming transaction then someone is looking to make a lot more money than they would be earning through "normal" means.

Might open up the doors for a competitor should the fees get bad enough.

Hmmm....I wouldn't use them, but I'm wondering how else are they going to make money? If the the fee isn't part of their terms, then I would say they are cheating, but if the fee was part of their terms, then it's up to the user to decide if those terms are acceptable. Read the terms and if you don't like the terms, then use a different service.

0.0008 btc it's too high fees for each incoming transaction. It's too bad if each transactions you made you lost around 2$ by localbitcoins. Anyways if you reason to buy/sell bitcoins. you should just use this forum, exactly in Currency exchange which you can set your own fees and make good deals there without paying high fees.

mikecgn

newbie

Activity: 26

Merit: 0

It happened to me, too recently. If you open their fees page it is not really clear, that you have to pay a deposit fee. There is a link to the wallet page but it sounds like the normal transaction fee when you withdraw. At least for me this is very misleading and even if it isn't much (especially when you deposit larger amounts there) it is not ok. At least I would expect, that you find that deposit fee on their fees page. Then you can decide, if you want to pay it or not. That they charge it at all, is not really my problem. But how they do it. This is black hat style for me.

I never had problems with localbitcoins as a buyer, and surely I will survive the deposit fee. But I certainly don't like to trust a page, that operates likes this. Imho it says a lot about the mindset behind it.

cjmoles

legendary

Activity: 1176

Merit: 1017

Quote from: Yakamoto on July 09, 2017, 11:48:17 AM

Quote from: ladydark on July 09, 2017, 07:21:57 AM

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

That's surprising, if they do have an incoming fee then it should be a lot lower than something like that, that's just too much. Maybe 0.0001 BTC (since they have to maintain their website somehow) but if they're taking that much (about $2 USD) for each incoming transaction then someone is looking to make a lot more money than they would be earning through "normal" means.

Might open up the doors for a competitor should the fees get bad enough.

Hmmm....I wouldn't use them, but I'm wondering how else are they going to make money? If the fee isn't part of their terms, then I would say they are cheating, but if the fee was part of their terms, then it's up to the user to decide if those terms are acceptable. Read the terms and if you don't like the terms, then use a different service.

dollarday

jr. member

Activity: 35

Merit: 4

Localbitcoin has an internal tumbler and I believe that with the increasing transaction fees, the incoming bitcoin fee was added to mitigate the losses that they suffer transferring between their internal wallets. I was shocked when first added, but it isn't as much of a factor on larger transactions as it is on smaller transactions.

IamHigh

full member

Activity: 170

Merit: 100

I don't really care if localbitcoins is looting money but I will never use it again!

There are tons of scammers and they scammed my friend so bad. We contacted their team but they said the seller sent them proofs which are ps made.

MingLee

hero member

Activity: 490

Merit: 520

Quote from: ladydark on July 09, 2017, 07:21:57 AM

Hi, today i sent 0.00238 btc from my electrum wallet to my localbitcoins account.I have already paid transaction fee.I have received only 0.00154 btc in my localbitcoins account.So they have taken 0.0008 btc as incoming fee.So,dear all be careful while using localbitcoins.com for selling your hard earned btc.Just wanted to make you all alert of this loot.

I wouldn't call that looting, more something like pilfering or thieving the money, assuming that they don't have any sort of incoming fee information on their website or within their ToS. It's surprising that they would take $2 from users who are putting funds into their website, and it is incredibly surprising that they are trying to take that much from users. It doesn't cost that much to run the site, assuming that they're making money off of other things they have within their business model. Then again, I haven't really used the site all that much so I wouldn't be able to know.

Theb

hero member

Activity: 1680

Merit: 655

I think that is how they make money in the first place. Mind you that this is a business but what I don't get is why there is an incoming fee which is irregular thing to had. Because you are like depositing them your Bitcoin which is part of the steps in order for you to use their system. With that being said I think that they are abusing their power in having several fees in order to make money out of the customers.

hubballi

sr. member

Activity: 882

Merit: 297

Quote from: JL421 on July 09, 2017, 04:10:57 PM

This is some really old news they have introduce some new weird rules which doesn't make any sense to me. The reason why they charged you is because when you eill buy a small amount of bitcoins and when you withdraw those you will have to pay a 0.001 btc fees so now as you have been charged when you will withdraw they may not charge any fees

They are charging on you outgoing and incoming transaction fees and even if you are trading you are paying commission so now they are earning by all ways from the users. Just like how banks are taking money from users slowly in all ways.

JL421

hero member

Activity: 812

Merit: 510

This is some really old news they have introduce some new weird rules which doesn't make any sense to me. The reason why they charged you is because when you eill buy a small amount of bitcoins and when you withdraw those you will have to pay a 0.001 btc fees so now as you have been charged when you will withdraw they may not charge any fees

gentlemand

legendary

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Merit: 3056

Welt Am Draht

This is one of quite a few services that have done this. Now the fee spamming is over these charges aren't necessary in the slightest. I wonder whether they'll nix these fees. Something tells me they may not.

Topic: Localbitcoins looting the money (Read 1973 times)