Why some 3rd party wallet providers should be avoided.. - page 2.

The Sceptical Chymist

legendary

Activity: 3556

Merit: 7011

Top Crypto Casino

Quote from: ranochigo on December 04, 2020, 03:01:27 AM

Why would the person be forced to use Bitpay? The service wouldn't know if the payment is done via BitPay if it's done on-chain. They have no reason to force the user to use BitPay to pay for an invoice in Bitcoin on-chain, it'll be the same as paying using any other wallets.

Yeah, that's weird--usually when I've bought something and the processor is Bitpay they just provide you with an address to send the funds to, and you can send the payment with whatever wallet you want. Is OP's friend a newbie and missed something, perhaps?

Quote from: ranochigo on December 04, 2020, 03:01:27 AM

I don't think its very unreasonable for the fees to be that high.

But that isn't the point. Bitpay shouldn't (or usually hasn't) set the fee for the customer. I know the network has been really congested as of late and average fees have been extremely high, but OP should have been able to make the payment without using a Bitpay wallet.

The Cryptovator

legendary

Activity: 2422

Merit: 2228

Signature space for rent

Quote from: ranochigo on December 04, 2020, 03:01:27 AM

Why would the person be forced to use Bitpay? The service wouldn't know if the payment is done via BitPay if it's done on-chain. They have no reason to force the user to use BitPay to pay for an invoice in Bitcoin on-chain, it'll be the same as paying using any other wallets.

Most likely the website uses Bitpay API to accept bitcoin. I have experienced before on the Namecheap. Before adding BTCPayserver on the Namecheap they accept only Bitpay. There was no option to send funds from another wallet either its web or noncustodial wallet. You had to send fund Bitpay first if you are holding funds on another wallet. But good to see that now they are accepting bitcoin via BTCPayserver, so there is no issue sending bitcoin from anywhere.

OmegaStarScream

staff

Activity: 3500

Merit: 6152

Do you happen to know which service was it? I've already come across some merchants that asked me to login into my BitPay account as you said, but it was possible to continue "as guest" and then use a BIP70 decoder to pay for the invoice (by giving me the address and the amount).

Kakmakr

legendary

Activity: 3542

Merit: 1965

Leading Crypto Sports Betting & Casino Platform

Quote from: ranochigo on December 04, 2020, 03:01:27 AM

Why would the person be forced to use Bitpay? The service wouldn't know if the payment is done via BitPay if it's done on-chain. They have no reason to force the user to use BitPay to pay for an invoice in Bitcoin on-chain, it'll be the same as paying using any other wallets.

I don't think its very unreasonable for the fees to be that high. There was indeed a period of time where it took hours for my transaction with a fee of ~100sat/byte to get confirmed. If the merchant wants a confirmation within a reasonable period of time, I don't think that would be out of the ordinary though I agree it's quite extreme.

If your wallet provider doesn't allow you the liberty to choose the way to use your wallet, you should avoid it.

I think it is some regulatory thing for some merchants. A service like BitPay has strict KYC requirements, so the merchant knows he will not be implicated in dodgy deals, if the bitcoins was derived from criminal actions. They hope the KYC requirements will give them some protection against fraud and money laundering schemes.

It also leave a paper trail for their auditors with proper invoicing etc.. In any way, I will not be using their service.. so I am not to worried about that.

The other reason could also be that inter transfer of coins within a specific wallet provider.... might be cheaper for the merchant. I know some wallet providers do not charge a large fee, if the coins stays in their system. (It is just a ledger entry on their database, not a tx on the Blockchain) Roll Eyes

ranochigo

legendary

Activity: 3038

Merit: 4418

Crypto Swap Exchange

Why would the person be forced to use Bitpay? The service wouldn't know if the payment is done via BitPay if it's done on-chain. They have no reason to force the user to use BitPay to pay for an invoice in Bitcoin on-chain, it'll be the same as paying using any other wallets.

I don't think its very unreasonable for the fees to be that high. There was indeed a period of time where it took hours for my transaction with a fee of ~100sat/byte to get confirmed. If the merchant wants a confirmation within a reasonable period of time, I don't think that would be out of the ordinary though I agree it's quite extreme.

If your wallet provider doesn't allow you the liberty to choose the way to use your wallet, you should avoid it.

Kakmakr

legendary

Activity: 3542

Merit: 1965

Leading Crypto Sports Betting & Casino Platform

A few weeks ago, my friend used a bitcoin payment service provider called ... BitPay. He wanted to pay for a online subscription and the service only accepted bitcoin payments if you used BitPay.

The amount was small ... between $10 to $15 dollars ....so he thought it would not cost him a lot in miners fees. Well, he was wrong... The Fee rate was 123 sat/byte and his miners fees was almost $9 on that transaction of between $10 and $15 ..... that comes down to more than 45% of the total value of the whole transaction.

The service does not allow for you to choose what fee rate you wants to use, it just gives you a popup warning message.. saying that the fee is going to be high. Roll Eyes

Services and merchants should not force you to use their preferred payment service, because it is chasing customers away.

If he used his own hardware wallet or even Electrum, he could chose what fee rate to use and he would have paid a lot less. I guess it is a hard lesson to learn... right! Angry

Topic: Why some 3rd party wallet providers should be avoided.. - page 2. (Read 393 times)