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 Bitcoinist’s 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.