Bank of America charges 6000 times more than Bitcoin transactions
Bank of America (BofA) charges its customer a high fee as compared to bitcoin transactions. While critics claim that cryptocurrency transaction is too expensive, here is Bank of America proving them all wrong. Data from their website shows that traditional fiat transfers cost 6000 times as much as Bitcoin.
BofA along with other US domestic institutions use Federal Reserve’s FedWire money transfer network, where they charge anybody a higher margin of just 83 cents to process a payment.
BofA on the other side charges their customers up to $45 for a similar service.
If you look at the FedWire’s price per payment process they charge the highest of 83 cents for a transfer up to $14,000 in terms of monthly volume. For transfers from $14,001 to $90,000, they charge 24 cents which are relatively very less. And for transfers over $90,000, they charge only 16 cents.
BofA charges its customers $30 for an outbound domestic wire transfer, $35 for an outbound international wire sent in foreign currency, and $45 for an outbound international wire sent in US dollars.
In contrast, Bitcoin payment processing charge is relatively less. According to earn.com, the recommended fee for a quick yet effective delivery was 8 satoshis per byte on September 19, which calculates to around 75 cents for a $90,000 transaction.
However, complaints on bitcoin fees still exist from both customers and merchants, though the average cost decreased to an all-time low in 2018
BitPay, one of the oldest crypto merchant payment processor has gone through a point where it realized that open source alternative publicly resolve to make it “out of date” after poor performance combined additionally with high fees.
According to a BC Focus report, BitPay COO Sonny Singh said, “People have stopped trading ICOs as much as they were. The ICO market is in a lot of trouble and will never get back to where they were eight months ago.”
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