Network fees explained
Every on-chain transaction pays the network to include it in a block. That fee is set by demand, not by a price list, and it is charged per transaction rather than as a share of the amount. Those two facts explain most of what a business needs to know about network fees.
Key points
- Network fees pay for space in a block and rise when many people want that space at once.
- A network fee is roughly the same for a $15 payment as for a $5,000 one, unlike a percentage fee.
- Small tickets feel network fees most; large tickets feel percentage fees most.
- A business pays network fees when it moves, converts or refunds funds, not only when it receives them.
What a network fee pays for
Public blockchains add transactions in batches called blocks, and each block has limited room. The participants who build blocks, miners on Bitcoin and validators on Ethereum, choose which transactions to include, and the fee attached to a transaction is the main way to compete for that room.
On Bitcoin, the fee depends on the size of the transaction in data terms and the fee rate the sender chooses; a block is targeted about every 10 minutes. On Ethereum, fees are expressed in gas: each operation uses a set amount of gas, and the sender pays a price per unit of gas that rises when blocks are in demand. A simple token transfer uses more gas than a plain transfer of ether, so the asset you accept affects the fee as well as the network.
The fee is paid by whoever sends the transaction. When a customer pays you, they pay that fee. When you move funds to an exchange or bank off-ramp, consolidate many receiving addresses or send a refund, you pay it.
Why fees move with congestion
Because block space is limited, fees behave like an auction. When the network is quiet, a low fee is enough. When many people send at once, fees rise until enough senders decide to wait. Nobody can tell you in advance exactly what tomorrow's fee will be, and fees differ between networks and assets.
For a business this has three practical effects. Your cost per payment is not fixed. A customer who chooses a low fee may see their payment wait longer to confirm. And any refund or conversion you make during a busy period will cost more than the same action on a quiet day.
This site's default network fee assumptions, $0.05 for a USD-referenced stablecoin transfer and $1.50 for a native crypto-asset payment via a processor, are illustrative figures, not quotes or current market data. In the model they stand for the network cost a business bears per payment, for example to move each receipt onward. Change them in the tools to match what you see.
A flat fee per payment versus a percentage
Card fees are mostly a percentage of the sale plus a small fixed amount. Interac e-Transfer and EFT are mostly a fixed amount per payment. A network fee behaves like a fixed amount, but other on-chain costs, such as converting to CAD and withdrawing, are percentages. The card processing fees guide explains the card side.
The table shows the cost of a single domestic payment at three ticket sizes, using the site's default assumptions (illustrative, not market data). The stablecoin row includes a $0.05 network fee, 1% conversion to CAD and a 0.5% withdrawal fee. The native crypto-asset row includes a 1% processor fee, a $1.50 network fee and a 0.75% payout fee.
| Rail | $15 payment | $250 payment | $5,000 payment |
|---|---|---|---|
| Card (2.6% + $0.30) | $0.69 | $6.80 | $130.30 |
| Interac e-Transfer ($1.50) | $1.50 | $1.50 | $1.50 |
| EFT ($0.50) | $0.50 | $0.50 | $0.50 |
| Wire ($17.50 incoming) | $17.50 | $17.50 | $17.50 |
| USD-referenced stablecoin | $0.28 | $3.80 | $75.05 |
| Native crypto-asset via a processor | $1.76 | $5.88 | $89.00 |
Small tickets versus large tickets
At $15, the $1.50 network fee is a tenth of the sale, which is why the native crypto-asset route costs more than card in this illustration. At $5,000, the same fee barely registers, and percentage costs dominate.
Break-even points make this concrete. Under the defaults, the native crypto-asset route becomes cheaper than card for payments above about $141.18. A USD-referenced stablecoin costs less than an Interac e-Transfer only for payments below about $96.67, because above that the flat $1.50 transfer fee wins over the stablecoin's percentage costs. Against card, the stablecoin route is cheaper at every ticket size under these assumptions, so there is no crossover.
Fixed-fee bank rails look strongest on large domestic tickets. The comparison changes for cross-border sales, where bank rails may not be available; see cross-border payments from Canada.
When the network is busy
Suppose a busy period raises the network fee to an assumed $2 for a stablecoin transfer and $5 for a native crypto-asset payment. These are illustrative stress figures, not observed fees.
| Rail | $15 at default fee | $15 when busy | $5,000 at default fee | $5,000 when busy |
|---|---|---|---|---|
| USD-referenced stablecoin | $0.28 | $2.23 | $75.05 | $77.00 |
| Native crypto-asset via a processor | $1.76 | $5.26 | $89.00 | $92.50 |
In this illustration a busy network multiplies the cost of a $15 stablecoin payment about eight times, while the cost of a $5,000 payment rises by less than 3%.
Ways to manage network fee exposure
Network fees are one input among several. Stablecoins versus cards for merchants puts them in the wider cost picture.
- Set a minimum order size for on-chain payments if small tickets are uneconomic for you.
- State who bears network fees in your payment terms, including on refunds; see refunds on-chain.
- Move funds less often: consolidating receipts into fewer outgoing transactions reduces the number of fees you pay, at the cost of holding funds longer.
- Choose the asset and network deliberately, since fees differ between them; confirm that your customers can pay on the one you choose.
- Track actual fees paid and update your assumptions in the payment cost comparison.
Questions people ask
Who pays the network fee when a customer pays me?
The sender of a transaction pays its network fee, so the customer pays it on their payment. You pay network fees when you move, convert or refund funds yourself.
What is gas?
Gas is Ethereum's unit for measuring the computation a transaction uses. The fee is the gas used multiplied by the price per unit of gas, which rises when demand for block space is high.
Can I know the network fee in advance?
Wallets estimate a fee based on current conditions, but the fee needed can change from minute to minute. Treat any figure as an estimate.
Why does a $15 payment look expensive on-chain?
A network fee does not scale with the amount, so on a small ticket it is a large share of the sale. On a large ticket it is a small share.
Sources
Reviewed October 30, 2026. Educational information only; not financial, legal, tax or investment advice. This site does not process payments or hold funds.