![]() It is tied to network conditions of the Bitcoin or Bitcoin Cash networks at that time. Using a lower-than-average miner fee can put a transaction at risk of slow confirmation or no confirmation at all. (The "Conservative" fee estimate mode does not exist in Bitcoin ABC.)Ģ-block speed allows us to ensure that we can process funds reliably and quickly in all network conditions. This is the fee level which Bitcoin ABC recommends for helping Bitcoin Cash transactions confirm within 2 blocks. Bitcoin Cash (BCH): We use the local currency value of the BCH fee suggested by the Bitcoin ABC 2-block fee estimate. ![]() This is the fee level which Bitcoin Core recommends for helping Bitcoin transactions confirm within 2 blocks. Bitcoin (BTC): We use the local currency value of the BTC fee suggested by the Bitcoin Core "Conservative" 2-block fee estimate.The Network Cost uses one of the recommended miner fee levels of each of the blockchains we support: Miner fees are variable depending on network conditions and on how fast you want your transaction to be confirmed. How does BitPay calculate the Network Cost fee? This chart illustrates how your payment moves through BitPay and then to the merchant you are paying. Any business or person accepting on-chain payments has the expense of sweeping UTXOs from payments they receive. The miner fees BitPay pays to combine and sweep UTXOs from invoice receiving addresses are a major part of BitPay's costs of processing payments on the blockchains BitPay supports. An Unspent Transaction Output (UTXO) is the unit of cryptocurrency which can actually be used in another transaction. When you make a blockchain transaction, you are sending funds to a wallet address controlled by another person (or in this case, BitPay). What is BitPay paying miner fees for? What is a UTXO sweep? Merchants may choose to pass this fee on to the buyer. The Network Cost fee is the only fee BitPay charges to people who pay BitPay invoices.īitPay charges a small processing fee of 1-2% + 25¢ per transaction to BitPay merchants. What other purchaser fees does BitPay have? It is not the same as your miner fee for the miners, but it is based on recommended miner fee levels. The Network Cost fee goes to BitPay to cover BitPay’s miner fee cost for the UTXO sweep of your payment. The cryptocurrency miner fee is usually included with your payment automatically, and it goes directly to the miners. There is a difference between the Network Cost fee and your miner fee you include with your payment. There is no network cost fee for Bitcoin Cash, Ethereum/ERC-20 tokens or XRP. Read our original post about why we introduced the Network Cost in February 2017.īitPay charges a network cost fee for Bitcoin payments only. Miner fee costs change for BitPay based on the network conditions of the currency you pay with, so the Network Cost fee also changes. The Network Cost fee helps BitPay cover its miner fee costs. If the estimated amount of this miner fee is more than 0.01 USD, we charge it to purchasers as a separate fee (the Network Cost fee). That's why paying an appropriate miner fee is important for us. We need timely blockchain confirmations for these UTXO sweep transactions so we can exchange funds quickly and pay our merchants promptly. Then we send the funds to exchanges, where we get the fiat currency to pay BitPay merchants. ![]() We pay network-based miner fees (like you pay to send your transaction) to combine the different cryptocurrency amounts paid to BitPay (a "UTXO sweep"). When you pay a BitPay invoice, your payment goes to a BitPay address. ![]()
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