Today we’re announcing an upcoming change to the cost of issuing bitcoin refunds to customers.
What is changing, and why?
Bitcoin transactions are sent with small amounts of bitcoin called “miner fees.” These fees are used to pay bitcoin miners, which are responsible for confirming and securing transactions on the Bitcoin network.
Until this point, BitPay has fully subsidized the miner fee cost of sending refunds. Due to dramatically rising costs in miner fees, as of June 20, 2017, BitPay will no longer subsidize this cost.
What does this mean for me?
If your customer mistakenly under-pays or over-pays a BitPay invoice, the miner fee for the refund transaction will be deducted from the amount BitPay returns to the customer.
Additionally, if you choose to issue a full or partial refund for a BitPay invoice which has posted to your BitPay ledger, you will have two options for choosing how the bitcoin miner fee is paid:
Option 1: You will pay the fee. The miner fee for the refund transaction will be deducted from your BitPay balance and added as a separate entry in your BitPay ledger after the refund is executed.
Option 2: The customer will pay the fee. The miner fee for the refund transaction will be deducted from the refund amount sent to your customer. You will see a refund fee ledger entry added after the refund is executed, but it will be offset by a residual amount remaining on the refund invoice which is equal to the fee amount.
Both of these options will include ledger entry recording of refund fees under new BitPay ledger entry code 1039. View all current ledger codes.
You will be able to control the refund miner fee setting directly in your BitPay merchant dashboard and change your preferences whenever you wish.
What do I have to do?
This change will go into effect on June 20, 2017. It will not affect your current payment processing flow. However, your BitPay ledger will begin to show refund fee ledger entries with code 1039. Please notify your accounting and reporting team of this upcoming change, as this may affect your reporting processes with the BitPay merchant ledger.
BitPay makes concerted efforts to educate customers on how to properly make bitcoin payments. Our BitPay wallet was built to prevent common mistakes in user purchases which lead to refund scenarios, and we are constantly working with your feedback to build a better bitcoin payment experience.
Thanks again for using BitPay!
The BitPay Team