Only impulsive behavior sometimes makes this kind of OP's mistake.
I've used several exchanges in the past and almost all of them have the same conditions. Withdrawal fees will be deducted from the balance to be withdrawn. If the exchange also imposes a withdrawal fee from other balances, it's definitely an additional option that needs to be enabled, and even then they recommend fees from their typical tokens.
Topic: Network Fee Confusion (Read 229 times)
No company will pay you extra if you trade from Coinbase.
You have to pay yourself the principal and additional fees then the transaction is complete.
No company will pay you a fee if you trade. Therefore, the company does not incur any transaction costs.
You are just using their platform to make transaction so whole cost including the network fees will be on your end.The thing is Coinbase is charging fees according to them for each transaction and they will cut it from the amount you send so it's our responsibility to check that we have included the extra amount while sending. You have to pay yourself the principal and additional fees then the transaction is complete.
No company will pay you a fee if you trade. Therefore, the company does not incur any transaction costs.
My coinbase receipt showed the amount sent, but the recipient received the amount sent MINUS the network fee, so my payment wasn't accepted by the recipient. (i figured the fee was paid by my acct)
That seems misleading to me. Appreciate feedback!
That seems misleading to me. Appreciate feedback!
No company will pay you extra if you trade from Coinbase.
You have to pay yourself the principal and additional fees then the transaction is complete.
No company will pay you a fee if you trade. Therefore, the company does not incur any transaction costs.
My coinbase receipt showed the amount sent, but the recipient received the amount sent MINUS the network fee, so my payment wasn't accepted by the recipient. (i figured the fee was paid by my acct)
That seems misleading to me. Appreciate feedback!
That seems misleading to me. Appreciate feedback!
Exchanges have different kinds of charging strategies. Some charges are based on percentage, which is why some charge a fixed amount, like Binance, which charges from the user's withdrawing amount just like @Charles said the receiving amount will be displayed before the final confirmation.
There are exchanges where they already have a fixed withdrawal fee, like Finexbox, where any withdrawal under the Ethereum blockchain has a fee of always about 0.01 ETH; that's how some other exchanges base their charges on the network you are withdrawing from. So the mistake was really on your side; you should have noticed the total amount that the receiver is going to see before the final confirmation page. Unless those platforms are good at hiding fees, I don't see Coinbase as one.
My coinbase receipt showed the amount sent, but the recipient received the amount sent MINUS the network fee, so my payment wasn't accepted by the recipient. (i figured the fee was paid by my acct)
That seems misleading to me. Appreciate feedback!
In contrast to Coinbase's policy regarding flat fees and deducting from the sent amount, which usually results in situations as you have described in your message, network fees are more predictable and logically justified, and they are mostly calculated based on how many inputs and outputs your transaction has. Your wallet estimates what your final payment will be, and these calculations are based on pure algorithms that take into account the fee rate, the structure of transactions, script types, and other relevant information. Everything is transparent, predictable, and done in a decentralized manner to ensure that everyone gets what they deserve. That seems misleading to me. Appreciate feedback!
Please also note that it is considered a best practice to avoid sending payments directly from accounts on centralized exchanges because this money is not yet yours: you cannot and do not control the situation. A centralized exchange like Coinbase surveils all your incoming and outgoing transactions and checks them against an arbitrary set of criteria regarding the "purity" of your coin. If they suddenly decide to block your transaction and account upon receiving or sending, you may lose your hard-earned money along with trust to centralized regulated entities flirting with the masters of the fiat world.
This is really inconvenient from the sender's point of view, since he must independently add the network commission to the required amount. I don't understand why this happens, but a similar practice exists on other major exchanges, such as Binance and KuCoin. Same remains for us to carefully look at what amount is eventually sent and make manual adjustments taking into account the network fee.
Binance, Kucoin, and Huobi are also the same, and must make adjustments so that the amount sent is the same as the payment to be made. Fee adjustments like this really have to be careful and read the rules that have been embedded before making a withdrawal.
For gateway payments or paying bills such as the bitpay gateway, the amount must be the same otherwise the payment will fail.
But for CEX ByBit, unlike Binance or others, Withdrawal uses a fee that is added so that it does not reduce the amount to be sent.
and Wallet and DEX also use the same method as ByBit, so there is no confusion about having to adjust network fees manually.
...That seems misleading to me. Appreciate feedback!
This is really inconvenient from the sender's point of view, since he must independently add the network commission to the required amount. I don't understand why this happens, but a similar practice exists on other major exchanges, such as Binance and KuCoin. Same remains for us to carefully look at what amount is eventually sent and make manual adjustments taking into account the network fee.
Coinbase charges a flat 1% transaction fee on all cryptocurrency transactions.
That's the rate for Coinbase's "Commerce" service/app which isn't the wallet.For the custodial wallet's "Network fee", refer to this link instead: help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees
Expand "Primary balance" and read the part with "For transactions on cryptocurrency networks".
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In fact, this is not a common practice. Most services or wallets will send the provided amount to the recipient as it is and will deduct the fees from what's left on your account's balance.Deducting the fees from the sent amount makes it hard for the customer to calculate how much he needs to withdraw.
If I need to pay a merchant $10 then I should type $10 and the exchange can deduct whatever they want from the remaining balance.
@OP, what's the merchant's policy when they don't receive the full amount?
This is actually how the transaction works and it will be confirmed it has the appropriate fees as this is earning of the miners for solving a block and adding more coins to the circulation.Whenever you make a transaction always send some extra so that after deduction of the fees the amount reaches the receipt as it's from your side.
What I am just most concerned about is that Coinbase is charging fee in percentage, when other exchanges are not doing it like that. Using percentage to charge fee is a way their customers will pay even high on fee.
They always have these tricks to make profits out of the users pockets which is why people should avoid using these CEX for making any kind of transactions apart from trading perspective because they just want to get money from you in any way possible. 
OP the fault is from your end because if you're billed to pay $50 in btc and you never add the transaction fee from your own end it will definitely be a lapse, because you imputing only $50 worth amount of btc signifies that the charges should be made on the same amount of which before sending the transaction you must have been informed of the charges, now who do you want to take responsibility for the charges because on your end you're sending $50 in btc but they are receiving about $49 point from their end.
Well, I don't know why they do that, but for user purposes, the logical thing is that the fees are added after you enter the amount, not having to add up what you want to send plus the fee. When I use my HW I put the amount I want to send and then the fees are added. This is the most practical from a user's point of view.
But according to what I have noticed since I have been using bitcoin, even most wallets are deducting from the amount you input that you want to spend.On exchanges too, the amount that would be sent can be seen after the fee that would be charged is shown. That is how it is on the exchanges that I am using. So you can make the calculation yourself to send the correct amount that you want to send.
What I am just most concerned about is that Coinbase is charging fee in percentage, when other exchanges are not doing it like that. Using percentage to charge fee is a way their customers will pay even high on fee.
It is common practice for cryptocurrency transactions to deduct a network fee from the total amount sent. Although Coinbase displays the total amount including the fee, the recipient's wallet may deduct the fee from the total amount received. This can result in a discrepancy between what was sent and what was received, causing issues with payment acceptance. It is important to take this into account when sending cryptocurrency to avoid similar issues in the future.
That seems misleading to me. Appreciate feedback!
It is not misleading but it is not user friendly and that is also a bad thing. All exchanges I ever used usually show you the amount recipient will get so you don't have to figure out things by yourself but Coinbase has its own way of doing things.
There is no network fee confusion, you just failed to read what is written, and you misunderstood how fee's are being deduct, before every transaction, there will be a message or a reminder of what will be deduct.
Im using coinbase but I didn't experience that issue when sending BTC to others.
Since the mempool is congested I believe your balance when you are trying to send to someones wallet address with exact same amount in your current balance in Coinbase the transaction fee will automatically deduct from the amount you are trying to send to that address.
In short Coinbase deduct fees from the transaction you made because your wallet does not have enough balance and another reason is that the network is congested that is why it ask for high transaction fee since your current balance is not enough they will take the fee from your transaction.
Since the mempool is congested I believe your balance when you are trying to send to someones wallet address with exact same amount in your current balance in Coinbase the transaction fee will automatically deduct from the amount you are trying to send to that address.
In short Coinbase deduct fees from the transaction you made because your wallet does not have enough balance and another reason is that the network is congested that is why it ask for high transaction fee since your current balance is not enough they will take the fee from your transaction.
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You must make your payment including the value required by the recipient (company) plus on-chain transaction fee. Coinbase is not responsible to give you leftover of your payment transaction that exceed value required by that company.
Well, I don't know why they do that, but for user purposes, the logical thing is that the fees are added after you enter the amount, not having to add up what you want to send plus the fee. When I use my HW I put the amount I want to send and then the fees are added. This is the most practical from a user's point of view.
However, Coinbase has its rules and now the OP will surely not forget how it works next time. Although he might as well stop using that centralised, anti-bitcoin exchange bullshit:
Coinbase the most anti-Bitcoin organisation. Make #DeleteCoinbase great again
My coinbase receipt showed the amount sent, but the recipient received the amount sent MINUS the network fee, so my payment wasn't accepted by the recipient. (i figured the fee was paid by my acct)
Coinbase Commerce feesQuote
Coinbase charges a flat 1% transaction fee on all cryptocurrency transactions.
For assets hosted on the Ethereum blockchain like USDC, DAI, and ETH, the transaction fee is instantly deducted from your customers’ payment. All transaction and fee information are reflected in your payment details and in generated reports.
For assets hosted on the Ethereum blockchain like USDC, DAI, and ETH, the transaction fee is instantly deducted from your customers’ payment. All transaction and fee information are reflected in your payment details and in generated reports.
You must make your payment including the value required by the recipient (company) plus on-chain transaction fee. Coinbase is not responsible to give you leftover of your payment transaction that exceed value required by that company.
My coinbase receipt showed the amount sent, but the recipient received the amount sent MINUS the network fee, so my payment wasn't accepted by the recipient. (i figured the fee was paid by my acct)
That seems misleading to me. Appreciate feedback!
That seems misleading to me. Appreciate feedback!
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