Bitcoin Wallet Fees
Your miner fee determines the speed of confirmation time for your bitcoin payment in the network. Bitcoin wallet transaction fees estimates are calculated in satoshis per kB. The fee rates for bitcoin transaction have been steadily increasing and has even spiked in early 2017. Current fee and confirmation time estimates across services can be seen here: https://bitcoinfees.21.co/
We use the Bitcoin Core’s fee estimates and the backlog of unconfirmed transactions on the network as a baseline. The maximum amount by which the fee can be increased over the baseline is capped at two times. We take the bitcoin fee estimate from bitcoind and keep a record of this. We take this record and then we create our own estimate that averages this fee based on conditions to ensure that all the transactions are being absorbed by the network seamlessly. Bitcoin wallet transaction fees are completely unrelated to the value sent in the transaction – it depends upon how many inputs and outputs the transaction has.
Additional network costs for covering the costs of Unspent Transaction Outputs (UTXO)
Our users are charged an additional network cost on all EUR invoices to cover the cost of an UTXO. To deliver our transaction services, our invoice bitcoin payment needs to be transferred further using the same unit of bitcoin. This is called an Unspent Transaction Output (UTXO) and it enables another bitcoin transaction which is necessary to be executed. Due the rise of network costs, please understand that we can’t cover these costs additionally. This additional network cost enables our business a consolidation and it is not the same as the wallet transaction fee included with your payment to a bitcoin address and charged to your wallet by the bitcoin network. You can minimize additional costs on bitcoin payments while making larger purchases. Please make sure to pay the exact bitcoin amount requested on our invoice to avoid complication and support. You can ensure not to late-, over- or underpay an invoice by scanning the QR code or paying with a true bitcoin wallet. Please do not use hosted exchange or account services wallet which might even charge withdrawals fees and are not suitable for time-sensitive invoices like ours.
Fees should be effectively cut in half once SegWit is fully activated because our wallets are already SegWit enabled.