In an email sent to customers, peer-to-peer exchange Paxful announces that all gift card transactions will be subject to escrow fee increase from 2% to 3%. The company also said they are reducing fees for certain transactions.
Gift Card Escrow fees will increase to 3% starting on March 29, 2020. However, iTunes and Google Play Gift Cards remain at 5%. For non-gift card payment methods, escrow fees remain between 0.5% to 1%.
Paxful is one of, if not the only one who offers buying of bitcoin in exchange for gift cards. Paxful is aware that gift cards can be a risky payment method. In November 2019, it recognizes the near impossibility of proving proper account balances with this method. It mentioned in a previous blog post:
“We know this is how many unbanked users in Africa obtain their bitcoin and we refuse to disable the same people who we built the company for in the first place.”
Paxful went on to outline the cost and resources it took to make gift cards still a payment option in their marketplace. The entire post can be read here.
Paxful said the changes to gift card fees will strengthen their compliance and customer support services.
Reduced Wallet Fees for Transactions under US20
From the same email, Paxful also said that all transactions under US$20 will have reduced wallet send out fees.
“Wallet send out fees will be reduced for all transactions under US$20 starting from the same date as we want you to make the most of your trades.”
Updated Send Out Fees for Paxful:
- US$0 – 9.99 = 0.0001 BTC
- US$10 – 19.99 – 0.0002 BTC
- US$25+ = 0.0005 BTC
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This article is published on BitPinas: Paxful Announces Changes to Gift Card Fees