Blockchain fees for crypto withdrawals
Jan 19 2020
Last updated
Jan 19 2020
Last updated
Blockchain fees are rooted as part of each crypto currency, regardless of the network. They play a crucial role when trying to send an exact amount to a merchant or an end user, because on some networks this small part is barely noticeable, but on others it can substantially alter the received amount for the end-user. That is why we are allowing for a more flexible approach when deciding who is responsible to cover the blockchain fees for each crypto withdrawal.
When a withdrawal is initiated, the blockchain fee was automatically deducted from the withdrawal amount. This often led to discrepancies where the amount received by the end user was slightly less than expected. For instance, if a merchant intended to send 1 BTC, the end user might only receive 0.999653 BTC after the blockchain fee was deducted
For the scenario that we've described, when the merchant covers the fees the end user will receive the full amount of 1 BTC. This has the following benefits for the parties involved:
Full Amount Delivery: When you, as a merchant, specify an amount to be sent, the end user will receive exactly that amount.
Transparency: Ensures that end users receive the exact amount intended, improving trust and satisfaction.
Enhanced User Experience: Reduces confusion and improves the overall experience for both merchants and end users.
The amount that equals the blockchain fee will be taken from the merchants balance on top of the amount sent.
Who exactly is responsible for covering the fees for each withdrawal can be configured either from the business or when performing a crypto withdrawal.
To adjust the default behavior(user covers blockchain fees) or change the current one for any business, start editing it. Just under the refund options you will find the new radio buttons.
This configuration is also available as a separate step when creating a business.
After the change, the configuration will only apply to newly created withdrawals.
If you wish to alter who covers the blockchain fee only for a single withdrawal, the best approach would be to do it at the moment you initiate it. The well known radio buttons are also available on the crypto withdrawal initiation screen.
If you need further help with the configuration or any assistance, please feel free to contact us under support@finrax.com
