Wallet

Paxful Fees – Who pays and when?

70006 views April 29, 2017 June 28, 2018 ray 520

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 0.0005 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.

 

Was this helpful?