How does Banxa set the price of cryptocurrency?

1. How does Banxa determine the prices it offers to buy or sell Crypto-Assets?

Banxa obtains the base price of a Crypto-Asset using reputable, independent third-party pricing providers and then adds a spread to quote you a price to buy or sell the Crypto-Asset. 

2. What fees does Banxa charge?

There are two types of fees Banxa may charge when processing your transaction: 

• a Network Fee; and

• a Processing fee

A. Network Fee

The network fee covers the costs associated with the transfer of a Crypto-Asset and is determined based on the network fee Banxa has previously paid on recent transactions on that blockchain. We will only charge you a network fee for Buy transactions. The amount of the network fee will be shown to you as a line item fee and will be identified as the “Network fee”.

B. Processing Fee

The Processing fee covers a number of costs associated with Card & ApplePay transactions, such as payment processing and chargeback costs. We will only charge you a Processing Fee for a Buy Transaction when you pay using a Card or ApplePay.  Buy transactions using other payment methods, or Sell transactions do not attract a Processing Fee. 

3. Spreads

We may include a spread in the asset price shown to you during your transaction. The total spread applied to your transaction will depend on multiple factors, including:

• The coin being purchased

• The blockchain it is being purchased on

• The payment method used

• The currency you choose to pay in

• The partner who referred you to Banxa

The total spreads that will be applied to your transaction are calculated by adding:

• Banxa Spread, plus

• Partner Spread, plus

• Recovery Spread

Banxa and Partner spreads are applied to compensate Banxa and our partners for the respective services we provide.

The Recovery spread may be applied if Banxa expects to incur fixed costs associated with the transaction. 

For example, if you purchase €1,000 of Litecoin using SEPA and

• Banxa spread was 3%

• Recovery Fee was $1 and

• Affiliate Fee was 1%

then the total spread applied to your transaction would be calculated as follows:

4. Your bank or payment institution may charge fees

It's important to note that your bank or financial institution may have their own fees for transactions. These fees are beyond our control, so please check with your bank or financial institution before placing your order if you are unsure.

5. Our Costs

Banxa incurs several costs when processing your buy or sell transactions. These include network and withdrawal costs, which are the blockchain gas fees associated with buying, sending, or transferring crypto-assets. We also incur costs associated with processing card, ApplePay and GooglePay transactions. Partner fees, which are costs paid to affiliates, are another factor. Additionally, order completion costs are incurred, representing payments to liquidity providers arising from the purchase or sale of a crypto-asset. Incomplete transaction costs cover processing and withdrawal fees in some non-completed transactions, and chargeback costs relate to fraud-related refunds and processing expenses. Finally, sweeping costs are the processing costs incurred in collecting customer deposits and balancing crypto-assets between internal wallets.

In addition to these identified costs, we also incur a number of transaction-related expenses necessary to ensure you receive a seamless experience when buying or selling your crypto. These include costs related to satisfying KYC obligations, fraud prevention, blockchain analysis, our technological crypto infrastructure, and transaction monitoring

6. When our prices are final

For Buy transactions, the final amount of Crypto-Asset you will receive is always clearly displayed on the final page of the checkout process, right before you make your payment.

For Sell transactions, the final amount of fiat currency you will receive is always clearly displayed on the final page of the checkout process, right before you send your coins.

Note that in some limited circumstances, we may not be able to honour a price you have been quoted, such as when the price of a Crypto-Asset moves considerably between the time you placed your order and the time we received your payment.  In such circumstances, we will contact you to confirm if you wish to:

• Complete your order at the prevailing market price, or

• Cancel the order and receive a full refund.