At Redeeem, we already have the highest quality gift cards of any peer-to-peer crypto exchange (over 95% success rate). However, we are also committed to offering the best discounts for gift card buyers and fastest time to sell for sellers using Redeeem to buy bitcoin with gift cards.
So today we are excited to announce we are the first peer-to-peer crypto exchange to offer 0% commission fees for all gift card trading.
Starting on Friday, March 27th 2020 at 12:00 UTC all escrow fees for gift cards will decrease to 0% and remain commission-free indefinitely. You will still have access to the same 5-star customer support, anti-fraud team, TelegramBot and other free tools developed by our team.
A Race to the Bottom
Last week, as news reports of of Coronavirus swept the globe, we announced a temporary 0% commission on all grocery store gift cards to help people who were economically impacted during this difficult time. The response by sellers was significant, so we started to envision a life without commission fees at all.
Then a few days later, as the impact of the economic crash amplified, traders on Paxful woke up to the news that Paxful would increase escrow fees by 50% for all gift card brands, charging up to 5% fee for some brands due to fraud.
As a cryptocurrency exchange in its sixth year of maturity, shouldn't the market effects should allow them to decrease fraud and escrow fees? Speed and liquidity is imperative on any exchange, and we believe fees are a hinderance to that goal, so we decided to get rid of commission fees entirely.
For sellers this will mean faster sell times since cards will not have any margin baked into the price. For buyers, it means higher discounts and higher profit margins once you buy Credits.
Other Fees We Charge
Please note, "commission-free" doesn't mean "fee-free". We still have a few other fees that are not going away with the move to zero-commission. But at Redeeem, we aim to cut fees the best we can.
Sellers will still be charged a $1.00 fee to withdraw payouts on the Earnings page to cover blockchain fees. Buyers will still pay a 3-5% markup on the average market prices of the cryptocurrencies when buying Credits. This spread covers expenses related to payment processing, anti-fraud tools and protects us from volatility risk as we move crypto into the hot wallets. But once you enter the platform, everyone will now enjoy commission-free trading.