Efficient Cryptocurrency Payment Processor With the Lowest Transfer Fee
The transaction fee of a cryptocurrency payment processor is vital to the service provider and its users. As the world moves toward efficiency, crypto transfers should be no different.
With blockchain tokens becoming more popular, crypto payment gateways must offer more competitive transaction fees. This is particularly true for microtransactions, as nobody should pay excessively for sending and receiving small amounts.
Without a doubt, most people have yet to adopt crypto for transfers because of the cost of sending and receiving it. This article will examine how a cryptocurrency payment processor sets its fee structure.
Understanding the Fee Structure of Cryptocurrency Payment Processors
There are different ways through which a cryptocurrency payment processor can set its fees. Some of these measures include the following:
- Percentage Charges: Just as its name states, this structure requires people to pay a certain percentage. This can range from as low as 0.5% to as high as 5%. Examples include Tectum (0.5%), Coinbase (1%), and BitPay (1%).
- Flat Fee: This structure includes a fixed amount, regardless of the transaction size. A good example is the Tron network, which charges users a $1 flat fee for any cryptocurrency sent from one secure wallet to another.
- Tiers or Ranges: In this case, the crypto payment processor creates ranges for different categories of transaction amounts. This is a diverse process that can include high and low tiers, basic and premium transfers, variations based on cryptocurrency type, or differences according to additional services.
Most crypto payment solutions may choose to adopt just one of these measures or a combination of two or more.
How Do Tectum and SoftNote Offer Cheap Transaction Fees?
Tectum and SoftNote combine percentage charges with flat fees. Users are charged a minimal 0.5% whenever they transfer blockchain tokens or SoftNote Bills using our crypto payment solution. However, there is a catch.
Tectum does not charge users more than $1, regardless of the amount they are sending or spending. This means that people will pay the regular 0.5% fee for every transaction, as long as it does not exceed $1. Once the fee reaches $1, the system disregards the 0.5% principle and applies the $1 fee instead.
Why Low Transfer Fees Matter in Cryptocurrency Transactions
Low transfer fees are essential if crypto is to be used for everyday transactions and microtransactions. The current fee structures of most cryptocurrency payment processors are more suitable for institutional payments than for the average person. These large corporations can afford to pay significant amounts in transaction fees.
On the other hand, the average person makes multiple payments daily and would quickly become concerned about paying significant amounts in fees. Considering this, it is critical that crypto payment processors ensure the lowest possible rates.
