Bitpay has come under criticism for adding an extra “Network Cost” to some Bitcoin (BTC) payments, with critics arguing that the practice favors Bitcoin Cash (BCH). However, the company’s published explanation suggests the issue is less about pricing policy and more about the much higher cost of operating on the BTC network.
Not a New Fee, but an Existing Cost Item
Bitpay, which allows merchants to accept both BTC and BCH, says its core processing fee remains 1%. The controversy centers on the separate Network Cost charge. According to the company, this item was first introduced in early 2017 and is meant to help cover miner fees Bitpay must pay as part of handling customer payments.
Even after a customer sends a payment and pays an on-chain fee, Bitpay still incurs additional blockchain costs when it moves and consolidates invoice payments through UTXO sweeping. In that context, the extra charge is presented as a way to recover operating expenses rather than a newly imposed surcharge.
BTC Fees Are Far Higher Than BCH Fees
Bitpay also notes that it does not charge Network Cost if the calculated amount is below $0.01 and less than 0.05% of the invoice value. Because BCH transaction fees are often well below that threshold, BCH payments can appear to avoid the charge altogether.
The fee gap described in the article is substantial. At the time cited, the median transaction fee for BTC stood at $2.61, compared with just $0.0011 for BCH—more than 2,300 times lower. On a $10 payment, that means BTC could cost more than 26% to process quickly, while BCH remains close to zero. For payment processors relying on on-chain settlement, such a difference has direct consequences for sustainability.
A Broader Debate Over Network Congestion
The article links the issue to BTC network congestion and limited block space, which have pushed transaction fees higher. It argues that the criticism aimed at Bitpay reflects a larger dispute over the economics of on-chain Bitcoin payments rather than a sudden change in merchant processing policy.
For merchants and users, the controversy highlights a practical reality in crypto payments: network fees, settlement costs, and usability for small transactions can matter as much as brand recognition. Bitpay’s fee policy, in this view, is a visible symptom of those broader infrastructure differences.