Glossary · payments and processing
What is a network fee?
A network fee is what a blockchain charges to include a transaction in a block. It is paid to the network rather than to any company, varies minute to minute with demand, and is the one cost in a crypto payment that no provider sets.
Who pays it, which is the part that catches people
On an inbound payment the shopper pays the network fee, on top of the amount you invoiced. If they underpay because they subtracted it, you get a short payment rather than a full one.
On an outbound payout you pay it. This is why the same payout costs different amounts on different networks, and why letting a recipient choose a network matters commercially and not just technically.
Network fees are also the reason the same asset on two networks is really two payment options. USDC on one network can cost cents to move and rather more on another, with no difference in what arrives.
What to do about it
Three practical responses, none of which involve predicting the fee.
Offer the cheap networks
If a shopper can pay on a low-fee network, more of them complete. Which networks are available per asset is on supported currencies.
Frequently asked questions
Does CoinGate charge the network fee?
No. It goes to the network. Our own fees are separate and published. Pricing
Can I predict it?
Not reliably. It moves with network demand. What you can control is which networks you offer, which is where the real difference sits.
Who pays it on a payout?
You do, as the sender. It is deducted as part of sending rather than from the recipient’s amount.