Blog » Payments To Exchanges & Lower Fees

One of the most confusing aspects of Monero has been the payment address and receiving payments. Today, we're making things a bit simpler.

Here's a bit of background:

Monero addresses come in two flavors: plain addresses and integrated addresses. Plain addresses consist of 95 characters and integrated addresses are 106 characters long. If you set up a proper Monero wallet, such as the full wallet from getmonero.com or if you're using the web wallet on mymonero.com, you will have a plain address. Integrated addresses in turn are mostly used by exchanges, mobile apps or other web wallets.

For wallet providers, setting up and managing a proper Monero wallet for each of their users is quite complicated. So most wallet providers only create a single wallet for all their users. When a payment is made to this wallet, the provider looks at the payment id for this payment. With this payment id, the provider can associate the payment with a single user, even though all payments are internally made to the same wallet.

Historically, the payment id could be provided in a separate field. So to receive a payment, you'd have to enter your plain Monero address (the address of the provider) and a payment id. This led to many users entering the address and simply forgetting or ignoring the payment id. The payments were made to the wallet provider, but the wallet provider could not associate it with a user on their platform.

To prevent this, the idea of an integrated address was established. An integrated address consists of a plain Monero address and a payment id combined into a single 106 character string. With this, users simply need to copy a single piece of information, making it way less error prone.

What held us back from supporting integrated addresses for so long, was the fact that payments made to them could not be batched. Each payment to an integrated address needs to have its own transaction. It cannot be bundled together with other transactions. This means that transaction fees are a bit higher than usual.

Now we're giving our users the option to use integrated addresses by asking for a small transaction fee (0.005 XMR) for each payment.

There are still some exchanges and wallet providers out there that do not accept integrated addresses and still require a separate payment id. We do not support separate payment ids. It's an outdated and error prone way to do payments.

If your wallet provider still requires a payment id, please ask them to upgrade to integrated addresses. It makes all our lives a bit easier.

The second change today is the reduction of our minimum payout and fee. With the recent price rise of Monero and the higher mining difficulty of the network, it was getting harder and harder for our users to reach the minimum payout. So we cut the payout minimum and fees in half.

As we have said before, we do not want to hold your money hostage. We want you to recive and use the Monero that you have earned.

Happy Holidays!

posted on December 21, 2017, the Coinhive Team

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