<p>As an aside, Bitcoin transaction fees are paid in BTC, not in dollars. To understand how and why bitcoin transaction fees work, you need to consider them in this way.</p>
<p>From what you have written, it sounds like Coinbase batches withdrawals, which means they will pay many of their customers at once, in a single bitcoin transaction. A transaction can have 1 or more inputs, and 1 or more outputs, so if you have to pay many people, you can save costs by sending one transaction, which pays all of those people at once, rather than individual transactions witch pay them one at a time.</p>
<p>When Coinbase processes your withdrawal, they can charge you whatever they would like ($2 in this case). But the actual transaction fee that Coinbase paid to make that bitcoin transaction was apparently around ~$80 worth of BTC. Whether the sum of all fees they charged their customers would be equal to this amount, or more, or less, is all just a matter of Coinbase's company policy.</p>

CC BY-SA 4.0
2021-03-04T03:34:04.540Z
Okay that would fit what I am seeing and does appear to be from what I can tell, thank you:  "Transaction batching works by packaging up many customer send requests into a single transaction rather than creating a new transaction for every request." https://blog.coinbase.com/reflections-on-bitcoin-transaction-batching-b13dad12a12
P.S.
CC BY-SA 4.0
2021-03-03T07:06:51.603Z
2021-03-03T07:06:51.603Z
chytrik
<p><strong>Sent ~$7</strong> worth of BTC from a Coinbase wallet, to a cold wallet. Coinbase charged a ~$2 &quot;network fee&quot;.</p>
<p>Make sense so far, but the transaction listed on blockchain.com shows a magnitudes larger <strong>fee: ~$80</strong></p>
<p>The receiving cold wallet app shows the $7 received and also displays the <strong>~$80 fee</strong>, in its confirmed transaction history.</p>
<ul>
<li>Who paid that fee ?</li>
<li>Why would they do that and how does it make sense on a small transaction ?</li>
<li>Where did the $2 fee go and why is it not listed anywhere on the blockchain transaction ?</li>
</ul>

<transaction-fees><exchange-fees><payment-batching>
Why does my withdrawal fee not match the transaction fee I'm seeing on a block explorer website?
P.S.
# Why does my withdrawal fee not match the transaction fee I'm seeing on a block explorer website?

(Asked by: username_0 on 2021-03-03)

**Sent ~$7** worth of BTC from a Coinbase wallet, to a cold wallet. Coinbase charged a ~$2 "network fee".

Make sense so far, but the transaction listed on blockchain.com shows a magnitudes larger **fee: ~$80**

The receiving cold wallet app shows the $7 received and also displays the **~$80 fee**, in its confirmed transaction history.

* Who paid that fee ?
* Why would they do that and how does it make sense on a small transaction ?
* Where did the $2 fee go and why is it not listed anywhere on the blockchain transaction ?

**Tags:** transaction-fees, exchange-fees, payment-batching


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## 1 answers

### Answer by username_1 on 2021-03-03. Score: 3 | Accepted answer

As an aside, Bitcoin transaction fees are paid in BTC, not in dollars. To understand how and why bitcoin transaction fees work, you need to consider them in this way.

From what you have written, it sounds like Coinbase batches withdrawals, which means they will pay many of their customers at once, in a single bitcoin transaction. A transaction can have 1 or more inputs, and 1 or more outputs, so if you have to pay many people, you can save costs by sending one transaction, which pays all of those people at once, rather than individual transactions witch pay them one at a time.

When Coinbase processes your withdrawal, they can charge you whatever they would like ($2 in this case). But the actual transaction fee that Coinbase paid to make that bitcoin transaction was apparently around ~$80 worth of BTC. Whether the sum of all fees they charged their customers would be equal to this amount, or more, or less, is all just a matter of Coinbase's company policy.

> **Comments:**
> **username_0**: Okay that would fit what I am seeing and does appear to be from what I can tell, thank you:  "Transaction batching works by packaging up many customer send requests into a single transaction rather than creating a new transaction for every request." https://blog.coinbase.com/reflections-on-bitcoin-transaction-batching-b13dad12a12  

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