Manage Crypto Payments: Handle Underpayments and Fees with OxaPay

When accepting cryptocurrency payments, businesses can sometimes face underpayments or confusion about transaction fees. Understanding how to handle these issues and manage crypto payments effectively ensures smooth transactions and avoids potential disruptions. OxaPay payment gateway offers several tools and tips to help merchants manage underpayments and fees with ease. This guide will walk you through the best practices for dealing with these situations.

What is an Underpayment?

An underpayment occurs when a customer sends less than the requested amount during a cryptocurrency transaction. This can happen for various reasons, such as fluctuating exchange rates, network fees, or simple mistakes by the payer. In crypto payments, underpayments can lead to complications since the transaction may not fully cover the invoice amount. To manage crypto payments effectively, merchants need solutions to handle these shortfalls without disrupting business operations.

Why Underpayments Matter

Underpayments can lead to delayed processing, failed transactions, or lost revenue. For merchants, handling these situations efficiently is crucial to maintaining a good customer experience and ensuring timely order fulfillment.

OxaPay’s Tools to Handle Underpayments

OxaPay provides several features to help merchants manage crypto payments with underpayment scenarios:

1. Underpaid Cover:

OxaPay allows merchants to set a tolerance level for underpayments. This feature lets you decide how much of an underpayment you are willing to accept without rejecting the transaction.

• You can set the underpaid cover between 0% and 60%. For example, if you set it at 10%, OxaPay will automatically accept payments that are within 90% of the total invoice amount.
• This feature helps to reduce transaction failures due to minor discrepancies in payment amounts.

2. Notifications for Underpayments:

If a customer sends less than the required amount and it falls below the acceptable underpaid cover, OxaPay immediately notifies you. This alert allows you to quickly decide whether to manually approve the transaction, request an additional payment, or issue a refund.

3. Automatic Rejection of Underpayments:

If you prefer stricter controls, you can disable the underpaid cover feature. In this case, any transaction that is less than the requested amount will automatically be rejected, and the customer will be prompted to send the correct amount.

How to Set Up Underpayment Handling

To manage underpayments with OxaPay, follow these steps when creating or modifying merchant API keys or payment links:

1. Merchant API Key Setup:
   • Navigate to Merchants API from your dashboard.
   • Generate a new API key or edit an existing one.
   • In the Underpaid Cover section, set a tolerance level between 0% and 60% and save your changes.
2. Payment Links:
   • Go to Payment Links and create a new link.
   • Set the Underpaid Cover percentage as needed and finalize the link.
3. Adjusting Existing API Keys:
   • You can revisit any previously created API keys in the Merchants API section and enable or modify the underpaid cover option at any time. This flexibility allows you to adjust the settings for all L keys to align with your evolving business needs.

Managing Transaction Fees with OxaPay

Cryptocurrency payments often involve network fees, which are charges for processing transactions on the blockchain. These fees are typically small, but they can add up, especially for high-volume businesses. OxaPay offers two main options for handling these fees:

1. Fee Paid by Payer:

OxaPay allows merchants to pass on transaction fees to customers. This option ensures that the merchant receives the full invoice amount without deductions for processing fees.

• When this option is enabled, customers will see an additional fee added to the total amount they need to pay.
• This is ideal for businesses that want to avoid absorbing the costs of cryptocurrency transaction fees, especially for small-margin products or services.

2. Fee Paid by Merchant:

Alternatively, merchants can choose to cover the transaction fees themselves. In this case, the customer pays only the invoice amount, and OxaPay deducts the fees from the total received.

• This can improve customer satisfaction, as it reduces the extra costs on their end, and it can also make your business more competitive by offering a fee-free experience for customers.

Setting Up Fee Management in OxaPay

To configure how transaction fees are handled:

1. Merchant API Key Setup:
   • Go to Merchants API in your dashboard and generate or edit an API key.
   • Enable “Fee Paid by Payer” to shift the blockchain fees to the customer, ensuring you receive the full invoice amount.
   • Alternatively, leave the option disabled if you prefer to absorb the fees, providing a fee-free experience for your customers.
   • Save your API key to apply these settings.
2. Payment Links:
   • Navigate to the Payment Links section and create a new link.
   • Specify whether the customer or your business will cover the fees during the link creation process.
3. Modifying Existing Keys:
   • Visit the Merchants API section to edit any previous API keys and adjust the fee settings as needed.

Best Practices for Managing Underpayments and Fees

To ensure smooth transactions and minimize disruptions, here are some best practices for handling underpayments and fees:

1. Set an Appropriate Underpayment Tolerance: Consider your business needs when setting the underpaid cover percentage. If you frequently deal with small payments, a higher tolerance level can help reduce transaction failures.
2. Communicate Clearly with Customers: Ensure that customers are aware of any additional fees before they complete the payment. This helps avoid confusion or frustration over unexpected charges.
3. Regularly Review Payment Settings: As your business grows or market conditions change, it’s important to regularly review and adjust your payment settings to match your needs.
4. Monitor Transactions in Real-Time: Use OxaPay’s real-time notifications to stay informed about payment statuses, especially for underpaid transactions. This allows you to quickly respond and resolve any payment issues.

Conclusion

Learning to manage crypto payments efficiently is essential for businesses embracing cryptocurrency. OxaPay crypto payment gateway provides flexible tools for handling underpayments and fees, allowing you to maintain smooth operations while enhancing customer satisfaction. With the right setup, you can manage crypto payments effortlessly and focus on growing your business.

By following these tips and setting up your OxaPay account correctly, your business can handle underpayments and transaction fees with ease, allowing you to focus on growing your business while providing a seamless payment experience for your customers.