Paxful Fees – Who pays and when?

56026 views April 29, 2017 January 2, 2018 ray 432

On Paxful how much you pay depends on who you buy from.

Buyer Fees

If you are a buyer you do not pay Paxful anything. Paxful takes no fee from the buyer at all. The buyer does, however, pay a fee to the seller for converting their Cash, gift card or PayPal money etc… into bitcoin. Each seller has a different price so it is up to you to select the best one. For example, most vendors may charge a 30% fee to convert your Amazon Gift Card to bitcoin. This means you give them a $100 Amazon gift card and get back 70% of bitcoin to your Paxful bitcoin wallet. For more information on How to Get the best Price see this article.

Seller Fees

On Paxful the Seller of bitcoins pays a 1% fee. The buyer of bitcoins does not pay Paxful any fee at all.

Wallet Fees

Only the sender pays bitcoin network miner fees. The bitcoin miners fee goes to the bitcoin network, not Paxful. If you want to understand who bitcoin miners are, what they do and why they take a fee then read this bitcoin mining article. The Paxful wallet is a FREE bitcoin wallet but there are fee’s that go to support the bitcoin network that we cannot control.

High Miner Fees 🙁

The current miner’s fee is 0.0008 bitcoin.

This is why this has happened:

The bitcoin network is experiencing serious scaling issues and the bitcoin miners’ fees are rising. We’re doing everything we can to get to an agreement with BitGo to get this lowered for our users. As the bitcoin price has risen the miners’ fee is also higher. There isn’t anything we can do about that now as it is a core bitcoin network issue. You can read more about the current situation with miners’ fees here: https://medium.com/@spair/the-bitcoin-fee-market-4df1857d12b7

The high miners fees are not just an issue at Paxful. The average miners fee on the network currently is 0.0019 BTC, compared to this our fee is relatively low. We have also already adopted SegWit which means that in the near future bitcoin transactions will be much faster and cheaper for our users. This is a gradual process and also depends on whether the addresses sent to have adopted SegWit.

We understand how the fee can be frustrating when sending out a small amount. There are issues with scalability with bitcoin currently but the above mentioned SegWit and later on with the lightning network slow and expensive transactions should be an issue of the past.

Why is my account balance negative?

If you send 1 bitcoin to an outside address then they get 1 bitcoin and we deduct the bitcoin network miner fee from your remaining balance. If you only had 1 bitcoin as your balance then it shows it as a zero balance but in our system, it will actually be in the negative from the bitcoin network miner fee. When you deposit coins again it will go towards the negative balance. This way if you send out 1 bitcoin the receiving party always gets 1 bitcoin. When you send coins within the Paxful network, to another user, there is no mining fee.

One more example:

A user X is buying coins and gets 0.1 BTC from his trade. 0.1 BTC was deposited to his paxful wallet. After that, the user decided to send all bitcoins out of Paxful to his external wallet or pay for services. For every external transaction, bitcoin network takes 0.0008 BTC fee. User received exactly 0.1 BTC in his external wallet and Paxful pays 0.0008 btc fee for him, at this moment wallet balance become negative for the amount of fee -0.0008 btc. When the user logs into his account next time and buys another 0.1 BTC, he will receive total amount minus fee (-0.0008 + 0.1 = 0.0992 btc). 

Please keep in mind this simple rule when you are sending bitcoins out.



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