Figuring Out When, Who, and How Much to Pay When Accepting Payment in Crypto Coins
Transaction fees in cryptocurrency can seem complicated for newcomers to the world of crypto payments. It can be difficult to understand them right away. At first glance, it may seem that the crypto payment system tries to deceive novice users by promising minimal transaction fees. However, in reality, it turns out that the fee is charged at a higher rate and more than once. Why does this happen? We openly explain the fees that merchants and their clients face when using the Cryptadium platform.
One Fee, Two Fees
To avoid confusion, it’s important to understand the specifics of how a cryptocurrency payment system works. This will help you understand at what stage and for what the fee is charged. The first thing to know: in the world of crypto transactions, there are several types of fees. The payment system fee is just one of them, which users encounter. This fee is managed by the crypto payment service itself. Additionally, there is the blockchain network fee, which is not dependent on the payment system and cannot be controlled by it. On the contrary, the operation of the payment system depends on this fee. Moreover, if the platform’s operations involve cryptocurrency exchange, it means the service cooperates with a crypto exchange, which also has its own service fees. Now, let’s look at everything in order.
Cryptadium Platform Fee
Cryptadium operates a dynamic commission rate, which changes depending on the increase or decrease in the store's turnover. Possible commission rates can be seen in the "Dashboard" section (under the "Exchange Rates" block).
Take note of your turnover in $ for the current month and the current processing fee rate. You can also see how much more funds are needed to reach a lower commission rate, as well as the rate for the next level.
Commission Rates Based on Turnover:
- 0.9% – from $0 to $200,000
- 0.85% – from $200,000 to $400,000
- 0.8% – from $400,000 to $700,000
- 0.7% – from $700,000 to $1,000,000
- Individual % – from $1,000,000
If your turnover decreases in the current month, the current rate will be maintained for the next month, provided that the turnover decreased by no more than 10% from the lower limit of the turnover level corresponding to the current rate.
Apart from the fees mentioned above, Cryptadium does not charge any additional amounts for accepting cryptocurrency payments. Opening and maintaining an account is entirely free, with no monthly fees for use. There is also no fee for withdrawing funds to a crypto wallet.
Network Fee
If you accept cryptocurrency payments, you will encounter the blockchain network fee. This fee goes to miners who include transactions in blocks, thereby ensuring the delivery of transfers.
It’s important to know that this fee is mandatory, regardless of the payment system you use. This is an essential condition set by blockchain developers, serving three key roles:
- Paying for the services of miners/validators who confirm transactions on the blockchain;
- Protecting the network from spam attacks by hackers;
- Regulating the order of cryptocurrency transfers.
The network fee amount can vary depending on network congestion and other factors, but it is not dependent on the transfer amount.
When the Network Fee is Charged in Cryptadium:
- When paying for goods and services by the client — charged twice: for sending the cryptocurrency payment to a temporary wallet, where the payment parameters are checked, and then for transferring these funds from the temporary wallet to the Personal Account balance (depending on the settings, this fee can be included in the client’s bill or fully covered by you).
- When selling coins — similarly, the fee is charged twice: for transferring coins to the crypto exchange and for the return transfer from the exchange to the Cryptadium account.
- When hedging — the network fee is charged for each transaction to the hedge fund and the return transfer of stablecoins to the Cryptadium account.
- When withdrawing funds to a personal wallet — the blockchain network fee will be charged once.
In Cryptadium, you can configure the network processing fee to be included in the client’s bill. In this case, the amount to be paid will be higher than the price of the product or service. If you do not include the network fee in the client’s bill, it will be deducted from the received payment amount.
Exchange Fee
Like the network fee, the exchange fee is not related to Cryptadium and does not depend on it. It is necessary for the proper functioning of the "Hedging" and "Selling" options. In these cases, the exchange fee will be charged twice: when converting coins into stablecoins and when withdrawing funds from the hedge fund (exchange).
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