Cryptocurrency payments sometimes come with extra fees because every transaction must be processed and verified on a blockchain network. Unlike traditional payment systems that are handled by banks or payment providers, crypto transactions rely on miners or validators to confirm and secure the transfer.
Here are some possible reasons why you may have been charged more than the total order amount when using cryptocurrency as your payment method.
1. Network (Blockchain) Fees
Every cryptocurrency transaction is processed through the blockchain where miners or validators charge a fee to confirm the transaction. This fee varies depending on network congestion—when the network is busy, the fee is higher.
2. Exchange or Platform Fees
If you’re making a purchase through a cryptocurrency app or exchange such as Binance or Coinbase, additional service fees may be charged for processing the transaction. These fees can vary depending on the platform with some charging a fixed amount while others apply a percentage-based fee to the total purchase.
3.Network Payment Method Fees
Your payment method used to purchase cryptocurrency can also add extra cost
- Credit/debit card purchases → usually higher fees (2%–5% or more)
- Bank transfer → usually cheaper or free
- Third-party payment processors → additional surcharge
4. Conversion Fees
Conversion fees occur when your payment needs to be exchanged from one currency to another before purchasing cryptocurrency. During this process, additional charges or less favorable exchange rates may apply to each conversion. As a result, the final amount you pay may be higher than the original cryptocurrency price shown on the platform.
There are several ways to reduce the extra fees charged when purchasing cryptocurrency. Since crypto transactions can involve network fees, payment processing charges, and currency conversion costs, choosing the right payment method and platform can help lower the overall expense.
1.Use cheaper network payment methods
Bank transfers are usually the best option as they typically have the lowest fees or are free. Credit and debit cards should be avoided as they often include additional charges of 2%–5%. Some apps also support local bank transfer options, which are often cheaper than card payments.
2. Avoid buying during high network congestion
Cryptocurrency network fees can increase significantly when the network is congested. You may wait for a few hours or using off-peak times can reduce the cryptocurrency network fees.
3. Avoid unnecessary conversions
Avoid unnecessary currency conversions whenever possible. Fees can quickly add up when your money is converted multiple times from one currency to another then into cryptocurrency and later swapped into another coin. Instead try to purchase the cryptocurrency you want directly or minimize exchanges between different coins to reduce overall transaction costs.
4. Choose cheaper blockchains
Here are all the supported networks available on KALEOZ. Some networks offer lower fees than others so you may choose your preferred network for use.
5. Use a different payment method available in KALEOZ
If cryptocurrency payment methods are inconvenient for you, you may try using other available payment methods on KALEOZ. Please click here to view full list of supported payment methods available in KALEOZ.
If you have any questions or need assistance, please feel free to contact our friendly KALEOZ Support team and we’ll be more than happy to assist you!