Why is BitPay Still Lying About Bitcoin Transaction Fees?

Why is BitPay Still Lying About Bitcoin Transaction Fees?

US cryptocurrency payment processor BitPay has come under fire again after appearing to steer consumers to use altcoin Bitcoin Cash.

BitPay Disguises Revenue Ploy As BTC Network Fee

A screenshot uploaded to Reddit June 5 appears to show part of the checkout process for domain name resource Namecheap, which allows cryptocurrency payments via a BitPay plugin.

Confirmed by Bitcoinist, Namecheap allows you to top up an account using what it describes as Bitcoin.

A user enters the amount they wish to pay, whereupon they are taken to a BitPay window, which presents them with an option to use either bitcoin 00 or bitcoin cash 00.

Under the Bitcoin option, however, BitPay now includes an extra charge it calls a network cost, while the Bitcoin Cash field stays empty.

This network cost would appear to refer to the transaction fee required to send bitcoin payments over the network, but its size gives cause for suspicion.

For the Reddit user, a $15 Namecheap payment incurred a $2.19 network fee, while in Bitcoinists case, topping up $10 led BitPay to charge an extra $2.20.

These fees amount to 14.6 percent and 22 percent of the total transaction amount respectively much more than the actual fee required to send transactions of that size.

BitPay Continues To Deceive Bitcoin Users

Reddit commentators suggested that BitPay was in fact including a service charge and disguising it as the transaction fee, keeping the extra for its own books. In addition, it served to make BCH look like a better, more transparent option than BTC.

The solution, the most popular response claimed, was to urge Namecheap to follow other businesses and ditch BitPay in favor of an open source payment gateway such as BTCPay.

BitPay sucks. We should try to get Namecheap to run their own BTCPay server, it reads.

The PR incident is by no means an isolated incident for BitPay, which previously lied about the size of fees required to send BTC.

Shunning SegWit to Save on Fees

The company has gained the scorn of users and industry figures alike for its support of BCH and lack of progress implementing features which would reduce BTC transaction fees.

As Bitcoinist reported, using SegWit, for example, would reduce the cost and time to send a transaction, and its absence effectively forces the companys own users to pay more unnecessarily.

Similar criticism has landed at the door of popular wallet provider Blockchain.com, as well as US exchange Coinbase, which launched SegWit last year but has so far failed to adopt other procedures.

BitPays appeal is already limited, as a community backlash means that finding a wallet which supports its invoices is difficult. Invoices do not easily allow users to manually pay using a Bitcoin address, something which has formed further grounds for frustration.

What do you think about BitPays hidden fees and Bitcoin Cash advocacy? Let us know in the comments below!

Images via Shutterstock

The post Why is BitPay Still Lying About Bitcoin Transaction Fees? appeared first on Bitcoinist.com.

05.06.2019 / 03:20 53
BitPay-Pal? BitPay Introduces Settlement in USD-Pegged Stablecoins BitPay-Pal? BitPay Introduces
BitPay, purportedly the largest blockchain payments provider, will allow merchants to accept settlements in USD-pegged stablecoins. Gemini Dollar and
BitPay Enables Merchants to Receive Bitcoin Cash (BCH) Settlements BitPay Enables Merchants to Receive
BitPay merchants can now receive settlement payments in Bitcoin Cash, making it the second digital currency settlement option for merchants on the
Payment Platform Bitpay Adds Bitcoin Cash Settlement Services Payment Platform Bitpay Adds Bitcoin
On Wednesday, August 29 the Atlanta-based firm Bitpay announced that its merchants can now receive settlement in bitcoin cash (BCH). Not only can
BitPay Confirms Bitcoin Cash Retail Payments as Prices Jump BitPay Confirms Bitcoin Cash Retail
Cryptocurrency payment service provider BitPay has announced that it will allowbrick-and-mortar businesses to use Bitcoin Cash for payments. Already
BitPay Merchants Can Now Accept Bitcoin Cash Payments BitPay Merchants Can Now Accept Bitcoin
BitPay merchants can now accept a second cryptocurrency in addition to Bitcoin its offshoot Bitcoin Cash. The Atlanta-based company made the
Is BitPay Lying About Network Cost as Bitcoin Fees at Record Lows? Is BitPay Lying About Network Cost as
Cryptocurrency users continue to complain about unfair fees imposed by payment processors, with one calling out BitPay for charging a 0.2%
Comments (0)
Add a comment
Comment on