How do crypto payment gateways reduce transaction fees compared to traditional processors?

Crypto payment gateways offer significantly lower transaction fees than traditional processors like credit cards or bank transfers by eliminating intermediaries. Traditional payment systems involve multiple parties—banks, card networks (Visa/Mastercard), and payment processors—each charging fees that can total 2-4% per transaction, plus fixed costs. In contrast, crypto transactions are peer-to-peer, settling directly on the blockchain without intermediaries.

Key reasons for lower fees:

No Intermediary Markups: Crypto bypasses banks and card networks, avoiding their processing and currency conversion fees.

Flat Network Fees: Blockchain transactions typically cost cents (e.g., Bitcoin Lightning Network or Solana transactions can be under $0.01), unlike percentage-based credit card fees.

No Chargeback Costs: Crypto’s irreversible transactions remove fraud-related chargeback fees, which cost merchants
1.50

1.50–3.00 per dispute.

Borderless Savings: Traditional cross-border payments incur hefty forex and wire fees (5–10%), while crypto charges the same low fee globally.

For example, a Shopify merchant paying 2.9% + $0.30 per card sale might pay just 0.5–1% with a crypto gateway. However, fees vary by blockchain—Ethereum’s gas fees can spike, whereas stablecoin networks (like BSC) offer consistency. By cutting overhead, crypto gateways empower businesses, especially in high-volume or international trade, to retain more revenue.

Unfortunately that is only partly true.
When you channel amounts above 10k Many 1st World Banks are way less expensive. Take Revolut, they charge $ 25 for Transfers to Panama, and it does not matter if it is 1000 or 10 000. So it also depends a little on the bank and which country you are banking in.

The non-existing chargebacks are not entirely positive, they invite fraud. Binance also has buyer protection so not all gateways are so peachy.

Crypto needs a lot of work in regards to payment. It is best IMHO, to convince shop owners to accept crypto. For that you need a working exchange platform.

Crypto fees vs fiat fees

In my point of view crypto vs fiat fees is almost the same, crypto gives a return or not if you keep the crypto on the wallet. Fiat fees are direct and there is not way to reduce them. As a way to calculate the fees i’m using my own calculators.

When it comes to crypto transfers i’m using btc, then ltc, then dash because of liquidity. Recently i have been given the option of Digital dollars USDC (ERC20) nevertheless is not implemented on the payer site yet.

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