Question about Bitcoin network fees (Sending BitPay BTC to another exchange)

CntryBoy

sr. member

Activity: 1008

Merit: 251

I use BitPay as well, and their setup is not very user friendly in my opinion. I've been trying to locate more info on their wallet/fees but am unable to get clarity. For instance, you can load the BitPay debit card from any wallet and just like all transactions, you pay the miners fee to transfer it to the BTC address they give you to load the card. If you send funds to your Bitpay wallet, you pay the miners fee and then also have to pay another miners fee to transfer from the Bitpay wallet to the Bitpay debit card... they are 2 separate entities. Also, I find their wallet fee calculations very confusing... if you send a transfer out of their wallet and use a lower fee, I've noticed they force you to pay higher fees on some subsequent transactions... almost like they're trying to compensate for low fees? I'm not sure if they're trying to take a cut of it, and I have noticed if you check the transactions on blockchain.info, the fees you pay do not always match the fees blockchain shows were paid.. if that makes sense?

HCP

legendary

Activity: 2086

Merit: 4361

I would hope that Bitpay should forward that amount to you without charging you for a "network fee"... in my experience as a user (ie. buying things from merchants who use Bitpay as their payment processor), they actually add an extra network transaction fee to your purchase amount to cover the cost of Bitpay consolidating all the payments and transferring to the merchant.

For example, Buying an Amazon Gift Card from eGifter.com:

$100 AGC = 0.009150 BTC
Bitpay invoice = 0.009150 BTC (card) + 0.00026000 BTC (network fee) = 0.00941000 BTC total.

You then need to put ANOTHER network fee to send that total amount to Bitpay from your wallet... You can't control the transaction fee that Bitpay charge, but (depending on your wallet) you can control the transaction fee for sending the transaction TO Bitpay Wink

As I understand it, Bitpay then use the extra fee paid by the purchaser to cover the cost of transferring the coins to the merchant. According to their pricing (https://bitpay.com/pricing) they may also take a slice of the 0.00915 purchase price (up to 1% as a service fee depending on your plan/transaction volume)...

BrewMaster

legendary

Activity: 2128

Merit: 1293

There is trouble abrewing

if you use BitPay to accept payments then you are not exactly using bitcoin to worry about its network fees. you are using a third party, they accept some payment from in your place then they send that payment to you.
in other words everything is done inside that third party (BitPay) so you will have to read their rules. they may do it for free, or they may take a changing fee based on bitcoin's mempool size or a fixed fee they like!

jackg

copper member

Activity: 2856

Merit: 3071

https://bit.ly/387FXHi lightning theory

Quote from: goatapple on December 02, 2017, 09:47:34 AM

I plan to use BitPay to process bitcoin payments from customers and I have my BitPay account set to automatically send Bitcoin to my wallet on an exchange called "quadrigacx.com" which will then automatically sell the Bitcoin for fiat.

I am wondering if I will have Bitcoin network fees during this process that reflects in my balance when it arrives at the quadrigacx.com exchange.

Thanks for any info!

Fees should be constant based on size of the transaction (based on the number of input scripts and output scripts not actually the value).
I'm not sure specifically for bitpay but if they have a "fixed" rate of transaction fee no matter the size then it'll be constant until the network gets more saturated.
If they use dynamic fees, then there should just be one input and two outputs so fee should be similar but will be based on the network at the time so could vary.

goatapple

newbie

Activity: 10

Merit: 0

I plan to use BitPay to process bitcoin payments from customers and I have my BitPay account set to automatically send Bitcoin to my wallet on an exchange called "quadrigacx.com" which will then automatically sell the Bitcoin for fiat.

I am wondering if I will have Bitcoin network fees during this process that reflects in my balance when it arrives at the quadrigacx.com exchange.

Thanks for any info!

Topic: Question about Bitcoin network fees (Sending BitPay BTC to another exchange) (Read 236 times)